ARTICLE 19
CAPTIVE INSURANCE COMPANIES
§431:19-101 Definitions. As used in this article:
"Affiliated entity" means any company, person, or other entity in the same corporate system as a parent or a member organization by virtue of common ownership, control, operation, or management, or, in the case of a pure captive insurance company, whose risks insured by the pure captive insurance company are directly or indirectly controlled by the parent or an affiliate of the parent of a pure captive insurance company.
"Association" means any legal association of individuals, corporations, limited liability companies, partnerships, associations, or other entities, except labor organizations, the member organizations of which or which does itself, whether or not in conjunction with some or all of the member organizations:
(1) 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;
(2) Have complete voting control over an association captive insurance company incorporated as a mutual insurer; or
(3) Constitute all of the subscribers of an association captive insurance company formed as a reciprocal insurer.
"Branch captive insurance company" means an outside captive insurance company licensed under this article by the commissioner to transact the business of insurance in this State through a business unit that has its principal place of business in this State.
"Captive insurance company" means a class 1, class 2, class 3, class 4, or class 5 captive insurance company formed or authorized under this article.
"Leased capital facility" means a limited membership insurance company formed as a class 4 company under this article that insures the risks of its participants.
"Member organization" means any individual, corporation, limited liability company, partnership, association, or other entity that belongs to an association.
"Outside captive insurance company" means an insurance company licensed under the laws of a jurisdiction other than this State and not otherwise admitted to do business as an insurance company in this State, that insures the risks of its parent or any affiliated companies.
"Parent" means a corporation, limited liability company, partnership, other entity, or individual, that directly or indirectly owns, controls, or holds with power to vote more than fifty per cent of the outstanding voting interests of a pure captive insurance company organized as a stock corporation, nonprofit corporation, or limited liability company.
"Participant" means any entity, partners, or joint venture partners, or members within the same corporate family of the entity that are insured by a leased capital facility, where the losses of the participant may be limited through a participant contract to the assets of a protected cell. A sponsor may be a participant.
"Participant contract" means a contract by which a leased capital facility insures the risks of a participant and, if the risks are segregated through one or more protected cells, limits the losses of the participant to the assets of a protected cell.
"Protected cell" means a separate account established and maintained by a leased capital facility for one participant.
"Pure captive insurance company" means any company that only insures or reinsures risks of its parent and affiliated entities.
"Pure nonprofit captive insurance company" means a pure captive insurance company formed without capital stock as a nonprofit corporation under chapter 414D, whose voting of membership interest is held by a parent organization formed under a nonprofit law or by such nonprofit parent and its affiliated entities.
"Risk retention captive insurance company" means a captive insurance company which is formed as a "risk retention group" as defined in chapter 431K.
"Sponsor" means any entity that is approved by the commissioner to provide all or part of the capital and surplus required by applicable law and to organize and operate a leased capital facility. [L 1987, c 347, pt of §2; am L 1988, c 187, §8; am L 1989, c 207, §15; am L 1992, c 108, §2; am L 1996, c 248, §1; am L 1998, c 150, §2; am L 1999, c 302, §2; am L 2000, c 36, §2 and c 133, §1; am L 2001, c 194, §3; am L 2002, c 40, §71; am L 2003, c 209, §1; am L 2005, c 31, §1; am L 2007, c 232, §1]