§550.5.  Incorporation of a captive insurer

A.  Unless otherwise approved by the commissioner, a pure captive insurer or an association captive insurer must be incorporated as a stock insurer pursuant to Subpart A of Part I of Chapter 2 of this Title.

B.  The articles of incorporation shall be prepared, approved and recorded in the same manner as provided in Subpart A of Part I of Chapter 2 of this Title.  In determining whether to grant such approval, the commissioner shall consider all of the following:

(1)  The character, reputation, financial standing and purposes of the incorporators or organizers.

(2)  The character, reputation, financial responsibility, experience relating to insurance and business qualifications of the officers and directors of the captive insurer.

(3)  The competence of any person who, pursuant to a contract with the captive insurer, will manage the affairs of the captive insurer.

(4)  The competence, reputation and experience of the legal counsel of the captive insurer relating to the regulation of insurance.

(5)  The business plan of the captive insurer.

(6)  Such other aspects of the captive insurer as the commissioner deems advisable.

C.  The articles of incorporation or bylaws of a captive insurer must require that a quorum of the board of directors consists of not less than one-half of the number of directors prescribed by the articles of incorporation or bylaws.

D.  The capital stock of a captive insurer shall be issued at not less than par value.

Acts 2008, No. 403, §1, eff. Jan. 1, 2009; Redesignated by Acts 2009, No. 503, §3.