Louisiana Revised Statutes 22:550.16 – Investments; loan to parent or affiliated company in certain circumstances
Terms Used In Louisiana Revised Statutes 22:550.16
- Affiliated company: means a company in the same corporate system as its parent or a member organization by virtue of common ownership, control, operation or management. See Louisiana Revised Statutes 22:550.2
- 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
- Parent: means a corporation, limited liability company, partnership, association or other form of business organization that directly or indirectly owns, controls or holds with power to vote more than fifty-one percent of the outstanding voting securities of a captive insurer organized as a stock corporation. See Louisiana Revised Statutes 22:550.2
- 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
A. Except as otherwise provided in this Section, an association captive insurer shall comply with the requirements relating to investments set forth in Subpart B of Part III of Chapter 2 of this Title.
B. A pure captive insurer is not subject to any restrictions on allowable investments, except that the commissioner may prohibit or limit any investment that threatens the solvency or liquidity of the pure captive insurer.
C. A pure captive insurer may make a loan to its parent or affiliated company if the loan meets each of the following requirements:
(1) The loan is first approved in writing by the commissioner.
(2) The loan is evidenced by a note that is in a form approved by the commissioner.
(3) The loan does not include any money that has been set aside as capital or surplus as required by La. Rev. Stat. 22:550.10.
Acts 2008, No. 403, §1, eff. Jan. 1, 2009; Redesignated by Acts 2009, No. 503, §3; Acts 2012, No. 633, §1.