Louisiana Revised Statutes 22:550.14 – Meetings of board of directors; additional requirements to transact insurance
Terms Used In Louisiana Revised Statutes 22:550.14
- Association: means a legal entity consisting of two or more corporations, partnerships, associations or other forms of business organizations that are engaged in businesses or activities similar or related to a common business, trade, product, services, premises or operations. See Louisiana Revised Statutes 22:550.2
- Captive insurer: means any pure captive insurer or association captive insurer formed or licensed under the provisions of this Subpart. See Louisiana Revised Statutes 22:550.2
- Commissioner: means the commissioner of insurance. See Louisiana Revised Statutes 22:550.2
- Contract: A legal written agreement that becomes binding when signed.
- person: includes a body of persons, whether incorporated or not. See Louisiana Revised Statutes 1:10
- Pure captive insurer: means a captive insurer that insures only the risks of its parent and affiliated companies. See Louisiana Revised Statutes 22:550.2
- Service of process: The service of writs or summonses to the appropriate party.
A. The board of directors of a captive insurer shall meet in accordance with the following standards:
(1) For an association captive insurer, at least quarterly each year.
(2) For a pure captive insurer, at least annually.
B. The captive insurer shall maintain its principal place of business in this state, maintain its books and records in accordance with La. Rev. Stat. 22:68, and shall deliver to the commissioner an instrument authorizing service of process.
C. Prior to transacting insurance in this state, a captive insurer shall comply with all of the following items:
(1) Make adequate arrangements with a bank located in this state that is authorized pursuant to state or federal law to transfer money.
(2) Employ or enter into a contract with a natural person or business organization to manage the affairs of the captive insurer that meets the standards of competence and experience satisfactory to the commissioner.
(3) Employ or enter into a contract with a qualified and experienced certified public accountant that is approved by the commissioner or a firm of certified public accountants that is nationally recognized.
(4) Employ or enter into a contract with qualified, experienced actuaries who are approved by the commissioner to perform reviews and evaluations of the operations of the captive insurer.
Acts 2008, No. 403, §1, eff. Jan. 1, 2009; Redesignated by Acts 2009, No. 503, §3; Acts 2022, No. 26, §1.