As used in this chapter, unless the context requires otherwise:
(1)"Affiliated company" means any company in the same corporate system as a parent, an industrial insured, or a member organization by virtue of common ownership, control, operation, or management;
(2)"Agency captive insurance company" means a company or protected cell formed under this chapter that is owned by an insurance agency or brokerage and that only reinsures risks of policies that are placed by or through the agency or brokerage;
(3)"Alien" means a company formed according to the legal requirements of a foreign country;
(4)"Association" means any legal association of individuals, corporations, limited liability companies, partnerships, associations, or other entities, whereby:
(A)The member organizations of such
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As used in this chapter, unless the context requires otherwise: (1) "Affiliated company" means any company in the same corporate system as a parent, an industrial insured, or a member organization by virtue of common ownership, control, operation, or management; (2) "Agency captive insurance company" means a company or protected cell formed under this chapter that is owned by an insurance agency or brokerage and that only reinsures risks of policies that are placed by or through the agency or brokerage; (3) "Alien" means a company formed according to the legal requirements of a foreign country; (4) "Association" means any legal association of individuals, corporations, limited liability companies, partnerships, associations, or other entities, whereby: (A) The member organizations of such or the association itself, whether or not in conjunction with some or all of the member organizations: (i) Own, control, or hold with power to vote all of the outstanding voting securities of an association captive insurance company incorporated as a stock insurer; (ii) Have complete voting control over an association captive insurance company incorporated as a mutual insurer; (iii) Constitute all of the subscribers of an association captive insurance company formed as a reciprocal insurer; or (iv) Have complete voting control over an association captive insurance company formed as a limited liability company; or (B) Each member organization of the association is either: (i) A not-for-profit corporation, nonprofit association, or similar nonprofit organization; (ii) An entity or organization exempt from taxation under § 501(c) of the Internal Revenue Code ( 26 U.S.C. § 501(c) ); or (iii) A municipality, metropolitan government, county, authority, utility district or other public body generally classified as a governmental body or governmental entity, whether organized by private act or public act of the general assembly, or any agency, board, or commission of any municipality, metropolitan government, county, authority, utility district or other public body generally classified as a governmental body or governmental entity. This subdivision (4)(B)(iii) shall be liberally construed; (5) "Association captive insurance company" means any company that insures risks of the member organizations of an association, and that also may insure the risks of affiliated companies of the member organizations and the risks of the association itself; (6) "Captive insurance company" means any pure captive insurance company, association captive insurance company, agency captive insurance company, industrial insured captive insurance company, risk retention group, protected cell captive insurance company, incorporated cell captive insurance company, or special purpose financial captive insurance company formed or licensed under this chapter; (7) "Commissioner" means the commissioner of the department, or the commissioner's designee; (8) "Controlled unaffiliated business" means any person: (A) That is not in the corporate system of a parent and its affiliated companies in the case of a pure captive insurance company, or that is not in the corporate system of an industrial insured and its affiliated companies in the case of an industrial insured captive insurance company; (B) That has an existing contractual relationship with a parent or one (1) of its affiliated companies in the case of a pure captive insurance company, or with an industrial insured or one (1) of its affiliated companies in the case of an industrial insured captive insurance company; and (C) Whose risks are managed by a pure captive insurance company or an industrial insured captive insurance company, as applicable, in accordance with § 56-13-117 ; (9) "Department" means the department of commerce and insurance; (10) "Excess workers' compensation insurance" or "excess accident and health insurance" means, in the case of an employer that has insured or self-insured its workers' compensation or accident and health insurance risks in accordance with applicable state or federal law, insurance in excess of a specified per incident or aggregate limit established by the commissioner; (11) "Incorporated cell" means a protected cell of an incorporated cell captive insurance company that is organized as a corporation or other legal entity separate from the incorporated cell captive insurance company; (12) "Incorporated cell captive insurance company" means a protected cell captive insurance company that is established as a corporation or other legal entity separate from its incorporated cells that are also organized as separate legal entities; (13) "Industrial insured" means an insured: (A) Who procures the insurance of any risk or risks by use of the services of a full-time employee acting as an insurance manager or buyer; (B) Whose aggregate annual premiums for insurance on all risks total at least twenty-five thousand dollars ($25,000); and (C) Who has at least twenty-five (25) full-time employees; (14) "Industrial insured captive insurance company" means any company that insures risks of the industrial insureds that comprise the industrial insured group, and that may insure the risks of the affiliated companies of the industrial insureds and the risks of the controlled unaffiliated business of an industrial insured or its affiliated companies; (15) "Industrial insured group" means any group of industrial insureds that collectively: (A) Own, control, or hold with power to vote all of the outstanding voting securities of an industrial insured captive insurance company incorporated as a stock insurer; (B) Have complete voting control over an industrial insured captive insurance company incorporated as a mutual insurer; (C) Constitute all of the subscribers of an industrial insured captive insurance company formed as a reciprocal insurer; or (D) Have complete voting control over an industrial insured captive insurance company formed as a limited liability company; (16) "Member organization" means any individual, corporation, limited liability company, partnership, association, or other entity that belongs to an association; (17) "Mutual corporation" means a corporation organized without stockholders and includes a nonprofit corporation with members; (18) "Mutual insurer" means a company owned by its policyholders where no stock is available for purchase on the stock exchanges; (19) "Organizational documents" means the documents that must be submitted pursuant to title 48 and title 61 in order to legally form a business in this state or to obtain a certificate of authority to transact business in this state; (20) "Parametric insurance" means a type of insurance that does not indemnify the pure loss, but ex ante agrees to make a payment upon the occurrence of a triggering event; (21) "Parent" means an individual, corporation, limited liability company, partnership, association, or other entity, or individual that directly or indirectly owns, controls, or holds with power to vote more than fifty percent (50%) of the outstanding voting: (A) Securities of a pure captive insurance company organized as a stock corporation; (B) Membership interests of a pure captive insurance company organized as a nonprofit corporation; or (C) Membership interests of a pure captive insurance company organized as a limited liability company; (22) "Pure captive insurance company" means any company that insures risks of its parent and affiliated companies or a controlled unaffiliated business or businesses; and (23) "Risk retention group" means a captive insurance company organized under the laws of this state pursuant to the Liability Risk Retention Act of 1986, as amended, ( 15 U.S.C. § 3901 et seq.), as a stock or mutual corporation, a reciprocal or other limited liability entity. Risk retention groups formed under this chapter are subject to all applicable insurance laws including, but not limited to any applicable provisions in chapters 1, 2, 5, 6, 11, and 45 of this title.