1.Definitions.
As used in this section, unless the context otherwise indicates, the following terms have the following meanings.
2.Formation.
One or more sponsors may form a sponsored captive insurance company under this chapter. In addition to the general provisions of this chapter, the provisions of this section apply to sponsored captive insurance companies. A sponsored captive insurance company must be incorporated as a stock insurer with its capital divided into shares and held by the stockholder, as a nonprofit corporation with one or more members or as a limited liability company with a limited liability company agreement approved by the superintendent.
3.Supplemental application materials.
In addition to the information required by section 6702, each applicant sponsored captive
Free access — add to your briefcase to read the full text and ask questions with AI
1.
Definitions.
As used in this section, unless the context otherwise indicates, the following terms have the following meanings.
2.
Formation.
One or more sponsors may form a sponsored captive insurance company under this chapter. In addition to the general provisions of this chapter, the provisions of this section apply to sponsored captive insurance companies. A sponsored captive insurance company must be incorporated as a stock insurer with its capital divided into shares and held by the stockholder, as a nonprofit corporation with one or more members or as a limited liability company with a limited liability company agreement approved by the superintendent.
3.
Supplemental application materials.
In addition to the information required by section 6702, each applicant sponsored captive insurance company shall file with the superintendent the following:
4.
Protected cells.
A sponsored captive insurance company formed or licensed under the provisions of this chapter may establish and maintain one or more protected cells to insure risks of one or more participants, subject to the following conditions:
5.
Qualification of sponsors.
A sponsor of a sponsored captive insurance company must be an insurer licensed under the laws of any state, a reinsurer authorized or approved under the laws of any state, a captive insurance company formed or licensed under this chapter, a broker-dealer licensed pursuant to the Maine Uniform Securities Act, a financial institution or financial institution holding company authorized under Title 9‑B, including any affiliate or subsidiary of such financial institution holding company, or any other person approved by the superintendent in the exercise of the superintendent's discretion after finding that the approval of a person as a sponsor is not inconsistent with the purposes of this chapter. A risk retention group authorized pursuant to chapter 72‑A may not be either a sponsor or a participant of a sponsored captive insurance company.
6.
Participants in sponsored captive insurance companies.
The following may be participants in a sponsored captive insurance company:
7.
Investments by sponsored captive insurance companies.
Notwithstanding the provisions of subsection 5, the assets of 2 or more protected cells may be combined for purposes of investment, and such a combination may not be construed as defeating the segregation of assets for accounting or other purposes. Sponsored captive insurance companies shall comply with the investment requirements contained in this Title, as applicable, except that compliance with such investment requirements must be waived for sponsored captive insurance companies to the extent that credit for reinsurance ceded to reinsurers is allowed pursuant to section 6711 or to the extent otherwise considered reasonable and appropriate by the superintendent. Section 6707 applies to sponsored captive insurance companies except to the extent it is inconsistent with approved accounting standards in use by the company. Notwithstanding any other provision of this Title, the superintendent may approve the use of alternative reliable methods of valuation and rating.
8.
Delinquency of sponsored captive insurance companies or protected cells.
In the case of a sponsored captive insurance company, the provisions of section 6714 apply, except as otherwise provided in this subsection.