Louisiana Revised Statutes 22:550.7 – Application requirements
Terms Used In Louisiana Revised Statutes 22:550.7
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- 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
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- 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
- person: includes a body of persons, whether incorporated or not. See Louisiana Revised Statutes 1:10
- Subpoena: A command to a witness to appear and give testimony.
A. After incorporation a captive insurer shall apply to the commissioner for a certificate of authority. The application shall be certified by the initial board of directors of the captive insurer and must be accompanied by the fee as set forth in La. Rev. Stat. 22:821. The application shall include all of the following:
(1) A copy of the by-laws of the applicant.
(2) A financial statement for the captive insurer that has been certified by two principal officers.
(3) Biographical background information, on a form prescribed by the commissioner for each person who controls, directly or indirectly, ten percent or more of the captive insurer and for each director and officer of the captive insurer.
(4) A plan of operation which clearly indicates the method of operation of the insurer including all of the following items:
(a) The types and limits of insurance that will be provided.
(b) Pro forma financial statements for a period covering three years, which shall include a balance sheet, income statement, and cash flow statement.
(c) The amount and liquidity of its assets relative to the risks to be assumed by the captive insurer.
(d) The expertise, experience and character of the persons who will manage the captive insurer.
(e) A description of the captive insurer’s reinsurance program.
(f) A description of the captive insurer’s underwriting policy, including who will perform such functions.
(g) A description of the captive insurer’s claims handling procedures, including who will perform such functions.
(h) A description of the captive insurer’s investment policy.
(i) The overall soundness of the plan of operation of the captive insurer.
(j) The adequacy of the programs of the captive insurer providing for loss prevention by its parent or member organizations.
(k) A description of the captive insurer’s rate making policies and procedures.
(5) A feasibility study, or other analysis, prepared by a qualified actuary.
(6) A statement disclosing the identity and percentage of ownership of the captive insurer for all persons who control, directly or indirectly, ten percent or more of the captive insurer.
(7) Any other information deemed to be relevant by the commissioner in ascertaining whether the proposed captive insurer will be able to meet its policy obligations.
B. Information submitted pursuant to this Section shall be and remain confidential, and may not be made public by the commissioner or an employee or agent of the commissioner without the written consent of the captive insurer, except that:
(1) Such information may be discoverable by a party in a civil action or contested case to which the captive insurer that submitted such information is a party, upon a showing by the party seeking to discover such information that:
(a) The information sought is relevant to and necessary for the furtherance of such action or case;
(b) The information sought is unavailable from other nonconfidential sources; and
(c) A subpoena issued by a judicial or administrative officer of competent jurisdiction has been submitted to the commissioner.
(2) The commissioner may, in his discretion, disclose such information to a public officer having jurisdiction over the regulation of insurance in another state, provided that:
(a) Such public official agrees in writing to maintain the confidentiality of such information; and
(b) The laws of the state in which such public official serves require the information to be, and to remain, confidential.
Acts 2008, No. 403, §1, eff. Jan. 1, 2009; Redesignated by Acts 2009, No. 503, §3.