No. SB 990
Filed under Insurance.
Protected Cell Captive Insurance Companies; Specifying that a protected cell captive insurance company may only insure certain risks; revising the unimpaired paid-in capital requirements for captive insurance companies; authorizing one or more sponsors to form a protected cell captive insurance company; requiring applicant protected cell captive insurance companies to file certain information with the Office of Insurance Regulation; authorizing protected cell captive insurance companies to establish and maintain certain protected cells, subject to certain approvals granted by the office, etc.
Plain English Summary
AI-GENERATEDCreates a new insurer type, the protected cell captive insurance company, letting one or more sponsors run a single captive that insures multiple unrelated participants while keeping each participant's assets and liabilities in a separate protected cell.
Each protected cell's assets are shielded from the debts and claims of every other cell and of the company's general account, and cannot be seized to cover another cell's losses.
Sets minimum capital and surplus requirements for the new company type ($100,000 each) and limits it to insuring only the risks of its own protected-cell participants.
Requires Office of Insurance Regulation approval before a new cell is created, a participant contract takes effect, or assets move between a cell and the company.
AIAuthorizes one or more sponsors to form a new type of captive insurer, called a protected cell captive insurance company, that insures multiple participants through separate protected cells rather than a single shared risk pool.
AIA protected cell captive insurance company may only insure the risks of the participants tied to its protected cells, unlike other captive types that may insure any authorized line except certain excluded lines.
AIThe assets of a protected cell may not be used to satisfy any liability or claim from another protected cell or from the company's general account, walling off each participant's risk pool from the others.
AIA protected cell captive insurance company may not establish a cell, allow a participant contract to take effect, or move assets between accounts without prior written approval from the Office of Insurance Regulation.
AIA protected cell captive insurance company must maintain unimpaired paid-in capital of at least $100,000 and unimpaired surplus of at least $100,000, new minimums added specifically for this company type.
AILegal pleadings against a protected cell captive insurance company must specify which protected cell is or should be a party, and a suit that names no cell is treated as brought against the general account only.