(a)No captive insurance company shall be issued a license unless it possesses and maintains unimpaired paid-in capital and surplus of:
(1)In the case of a pure captive insurance company, not less than two hundred fifty thousand dollars ($250,000);
(2)In the case of an association captive insurance company, not less than five hundred thousand dollars ($500,000);
(3)In the case of an industrial insured captive insurance company, not less than five hundred thousand dollars ($500,000);
(4)In the case of a risk retention group, not less than one million dollars ($1,000,000);
(5)In the case of a protected cell captive insurance company, not less than one hundred thousand dollars ($100,000); and (6) In the case of an agency captive insurance company, not less than two hundred fifty thousand
Free access — add to your briefcase to read the full text and ask questions with AI
(a) No captive insurance company shall be issued a license unless it possesses and maintains unimpaired paid-in capital and surplus of: (1) In the case of a pure captive insurance company, not less than two hundred fifty thousand dollars ($250,000); (2) In the case of an association captive insurance company, not less than five hundred thousand dollars ($500,000); (3) In the case of an industrial insured captive insurance company, not less than five hundred thousand dollars ($500,000); (4) In the case of a risk retention group, not less than one million dollars ($1,000,000); (5) In the case of a protected cell captive insurance company, not less than one hundred thousand dollars ($100,000); and (6) In the case of an agency captive insurance company, not less than two hundred fifty thousand dollars ($250,000). (b) The commissioner may prescribe additional capital and surplus based upon the type, volume, and nature of insurance business to be transacted. (c) (1) Capital and surplus required under subsection (a) must be in the form of cash, cash equivalent, marketable securities, or an irrevocable letter of credit issued by a bank approved by the commissioner. (2) Marketable securities must consist of bonds of the United States, or any agency or instrumentality of the United States, which have been included in the three (3) highest grades by any of the recognized securities rating firms, bonds of this state, or bonds publicly issued by any solvent institution created or existing under the laws of the United States or any state of the United States, which have been included in the three (3) highest grades by any of the recognized securities rating firms. (3) Captive insurance companies using marketable securities to meet the capital and surplus requirements of subsection (a) shall file with the commissioner a certificate of an official with whom the securities are deposited, stating the time and amount, and that the official is satisfied that they are worth the amount required under subsection (a) and that the deposit is made with the official by the company for the protection of all policyholders and creditors. (4) Notwithstanding subdivision (c)(1), the commissioner may decline to accept as a deposit any specific issue of securities that the commissioner has determined may not provide the necessary protection to policyholders and creditors. (d) Except as otherwise provided in this chapter, chapter 9 of this title shall apply to captive insurance companies formed under this chapter.