(Section scheduled to be repealed on January 1, 2027) Sec. 123C-3. Minimum capital and surplus. A. The Department may not issue a certificate of authority to a captive insurance company unless the company possesses and maintains unencumbered capital and surplus in an amount determined by the Director after considering:
(1)the amount of premium written by the captive insurance company;
(2)the characteristics of the assets held by the captive insurance company;
(3)the terms of reinsurance arrangements entered into by the captive insurance company;
(4)the type of business covered in policies issued by the captive insurance company;
(5)the underwriting practices and procedures of the captive insurance company; and (6) any other criteria that has an impact on the operations of the captive
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(Section scheduled to be repealed on January 1, 2027) Sec. 123C-3. Minimum capital and surplus. A. The Department may not issue a certificate of authority to a captive insurance company unless the company possesses and maintains unencumbered capital and surplus in an amount determined by the Director after considering: (1) the amount of premium written by the captive insurance company; (2) the characteristics of the assets held by the captive insurance company; (3) the terms of reinsurance arrangements entered into by the captive insurance company; (4) the type of business covered in policies issued by the captive insurance company; (5) the underwriting practices and procedures of the captive insurance company; and (6) any other criteria that has an impact on the operations of the captive insurance company determined to be significant by the Director. B. The amount of capital and surplus determined by the Director under subsection A of this Section may not be less than $250,000 for a pure captive insurance company, $500,000 for an industrial insured captive insurance company, and $750,000 for an association captive insurance company. C. The capital and surplus required by subsection A of this Section must be in the form of: (1) United States currency; (2) an irrevocable letter of credit, in a form approved by the Director and not secured by a guarantee from an affiliate, naming the Director as beneficiary for the security of the captive insurance company's policyholders and issued by a bank approved by the Director; (3) bonds of this State; or (4) bonds or other evidences of indebtedness of the United States, the principal and interest of which are guaranteed by the United States.