20-1098. Definitions In this article, unless the context otherwise requires: 1. " Affiliate" has the same meaning prescribed in section 20-481. 2. " Agency captive insurer" means a captive insurer that is owned by one or more business entities that are licensed in any state as insurance producers or managing general agents and that only […]
20-1098.01. Licensing; authority A. If allowed by its articles of incorporation, bylaws or other organizational document, an applicant may apply to the director for a license to transact captive insurance, except that: 1. A pure captive insurer shall not insure risks other than the risks of its affiliates and controlled unaffiliated business. 2. A group […]
20-1098.02. Names of companies A. A captive insurer shall not adopt a name that is the same, deceptively similar to or likely to be confused with or mistaken for any other existing business name registered in this state. B. The name of a captive insurer that is a mutual company shall contain the word " […]
20-1098.03. Minimum capital and surplus; letter of credit; borrowed surplus A. The director shall not issue a license to a captive insurer unless the insurer possesses and thereafter maintains minimum unimpaired paid-in capital and surplus in combination as follows: 1. In the case of a pure captive insurer, at least $250, 000. 2. In the […]
20-1098.04. Formation of captive insurers; redomestication A. An agency captive insurer or protected cell captive insurer shall be incorporated as a stock insurer with its capital divided into shares and held by the stockholders. Each owner of an agency captive insurer shall be licensed as an insurance producer. B. A group captive insurer may be […]
20-1098.05. Protected cell captive insurers A. One or more sponsors may form a protected cell captive insurer as prescribed in this article. B. A protected cell captive insurer may establish and maintain one or more protected cells to insure the risks of one or more participants, subject to the following conditions: 1. A protected cell […]
20-1098.06. Protected cell captive insurers; sponsors; participants A. A risk retention group shall not be either a sponsor or a participant in a protected cell captive insurer. B. An association, corporation, limited liability company, partnership, trust or any other business entity may be a participant in any protected cell captive insurer formed or licensed under […]
20-1098.07. Annual report A. Not later than ninety days after the end of the captive insurer’s fiscal year, the captive insurer shall submit to the director a report of its financial condition that is verified by oath of two of its executive officers and that is supplemented by additional information as required by the director. […]
20-1098.08. Examinations A. Whenever the director determines it to be prudent, the director may examine the business, transactions and affairs of each captive insurer to ascertain the captive insurer’s financial condition and ability to fulfill its obligations and whether the captive insurer has complied with this article. B. Section 20-1098.23 applies to all examination reports, […]
20-1098.09. Grounds and procedures for license suspension or revocation The director may suspend, revoke or refuse to renew the license of a captive insurer to transact insurance business in this state for any of the following reasons: 1. Insolvency or impairment of capital and surplus. 2. Refusal or failure to submit an annual report as […]
20-1098.10. Legal investments A. A group captive insurer, an agency captive insurer and a protected cell captive insurer shall comply with the investment requirements prescribed in chapter 3, article 2 of this title. Notwithstanding any other provision of this title, the director may approve the use of alternative reliable methods of valuation and rating. B. […]
20-1098.11. Reinsurance A. Except as provided in subsection C of this section or otherwise with the approval of the director, a captive insurer may reinsure risks only pursuant to the limitations prescribed in section 20-1098.01, subsection A. B. A captive insurer may take credit for reserves on risks or portions of risks ceded to a […]
20-1098.12. Rating organization; exemption A captive insurer is not required to join a rating organization.
20-1098.13. Associations; benefits; prohibitions Except as otherwise provided in section 20-1098.01, subsection B for a self-insurance program approved under section 23-961, a captive insurer shall not join or contribute financially to any plan, pool, association or guaranty or insolvency fund in this state. A captive insurer or its insured, a parent, an affiliate, group members, […]
20-1098.14. Rules The director may adopt rules pursuant to title 41, chapter 6 to carry out this article.
20-1098.15. Applicability A. Chapter 2, article 6 of this title relating to unfair trade practices and frauds applies to captive insurers, except to the extent the director determines the nature of captive insurance renders particular provisions of chapter 2, article 6 of this title inappropriate. B. All other provisions of this title that are not […]
20-1098.16. Captive manager A captive insurer shall engage a manager who shall maintain the books and records of the captive insurer s business, transactions and affairs at a location that is in this state and that is accessible to the director. The captive manager shall promptly notify the director of any failure of the captive […]
20-1098.17. Effect of fees payment; premium tax A. The fees paid by a captive insurer pursuant to section 20-167, subsection F are payment in full and in lieu of all other demands for all state, county, district, municipal and school taxes, licenses and excises of whatever kind or character, except for: 1. A tax on […]
20-1098.18. Captive insurance regulatory and supervision fund; purpose A. The captive insurance regulatory and supervision fund is established within the department consisting of monies deposited pursuant to section 20-1098.01, subsection J. The director shall administer the fund as prescribed in subsections B and C of this section. Monies in the fund are exempt from the […]
20-1098.19. Establishment of branch captive insurer A. A branch captive insurer may be established in this state pursuant to this chapter to write insurance or reinsurance in this state except as provided in section 20-1098.01, subsection B and other than workers’ compensation or employers’ liability insurance. B. A branch captive insurer shall not conduct any […]
