TDI Releases Adopted Rules on Captives

The Texas Department of Insurance has published its new rules with regard to captive insurers, which don’t set any regulations on the insuring company’s deductible.According to an adopted rule in Section 964.051, a captive insurance company can issue a contractual reimbursement policy to “an affiliated certified self-insurer authorized under Labor Code Chapter 407, or an affiliate that is insured by a workers’ compensation insurance policy with a negotiated deductible endorsement.”A captive insurance company is an insurer formed by another company to cover its own...