LLLLLLLLL

 

 

   HOME

 

CAPTIVE INSURANCE COMPANY

ADMINISTRATIVE RULES

 

 

The following is a summary of the administrative rules governing Captive Insurance Companies.

 

1.         Each State will accept a Captive Insurance Company’s application during the          organizing process.

 

2.         The rule before licensing captives permits the commissioner to conduct an organizational examination or investigation before licensing a captive insurer.

 

3.         The rules that apply when captives are authorized:

 

A.         Permit the commissioner to require additional deposits or letters of credit, if he finds it necessary.

 

B.         Permit the Commissioner to establish requirements concerning reinsurance:

 

i. Credit is not allowed for reinsurance where there is not a complete transfer of risk to the reinsurer;

 

ii. Credit is not allowed for reinsurance where there is not an insolvency clause in the reinsurance agreement;

 

iii. A written reinsurance agreement is required;

 

iv. The Commissioner may require that each reinsurance contract be filed and approved.

 

NEXT PAGE

               

 

 

 

 

 

BACK – USE ARROW

TO PRINT USE PRINT PREVIEW