§550.16.  Investments; loan to parent or affiliated company in certain circumstances

A.  Except as otherwise provided in this Section, an association captive insurer shall comply with the requirements relating to investments set forth in Subpart B of Part III of Chapter 2 of this Title.

B.  A pure captive insurer is not subject to any restrictions on allowable investments, except that the commissioner may prohibit or limit any investment that threatens the solvency or liquidity of the pure captive insurer.

C.  A pure captive insurer may make a loan to its parent or affiliated company if the loan meets each of the following requirements:

(1)  The loan is first approved in writing by the commissioner.

(2)  The loan is evidenced by a note that is in a form approved by the commissioner.

(3)  The loan does not include any money that has been set aside as capital or surplus as required by R.S. 22:550.10.

Acts 2008, No. 403, §1, eff. Jan. 1, 2009; Redesignated by Acts 2009, No. 503, §3; Acts 2012, No. 633, §1.