Maine Revised Statutes Title 24-A Sec. 6711 – Reinsurance
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1. Reinsurance. A captive insurance company may provide reinsurance on risks ceded by any other insurer to the extent permitted by section 6702.
[PL 2009, c. 335, §17 (AMD).]
Terms Used In Maine Revised Statutes Title 24-A Sec. 6711
- Association: means any legal association of individuals, corporations, limited liability companies, partnerships or associations that have been in continuous existence for at least one year, the member organizations of which:
A. See Maine Revised Statutes Title 24-A Sec. 6701Captive insurance company: means any pure captive insurance company, sponsored captive insurance company, association captive insurance company or industrial insured captive insurance company formed or licensed under this chapter. See Maine Revised Statutes Title 24-A Sec. 6701 Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other. Parent: means a corporation, limited liability company, partnership or individual that directly or indirectly owns, controls or holds with power to vote more than 50% of the outstanding voting securities of a pure captive insurance company organized as a stock corporation or 50% of the membership interests of a pure captive insurance company organized as a nonprofit corporation. See Maine Revised Statutes Title 24-A Sec. 6701 United States: includes territories and the District of Columbia. See Maine Revised Statutes Title 1 Sec. 72
2. Credit for reserves. A captive insurance company may take credit for the reinsurance of risks or portions of risks ceded to a reinsurer in accordance with this Title. A captive insurance company may not cede risks or take credit for the reinsurance of risks or portions of risk without the approval of the superintendent, except for business written outside the United States by an alien captive insurance company.
[PL 2009, c. 335, §18 (AMD).]
3. Credit for reserves on risks; adequate security. In addition to reinsurers complying with chapter 9, subchapter III, a captive insurance company may take credit for reserves on risks or portions of risks ceded to a pool, exchange or association acting as a reinsurer that has been authorized by the superintendent. The superintendent may require any other documents, financial information or other evidence that such a pool, exchange or association is able to provide adequate security for its financial obligations. The superintendent may deny authorization or impose any limitations on the activities of a reinsurance pool, exchange or association that, in the superintendent’s judgment are necessary and proper to provide adequate security for the ceding captive insurance company and for the protection and benefit of the public.
[PL 1997, c. 435, §1 (NEW).]
4. Reinsurance of workers’ compensation risks. A captive insurance company may, with the approval of the superintendent, reinsure workers’ compensation risks of its parent and affiliated companies under a statutory workers’ compensation policy issued by a licensed insurer or under a qualified self-insured plan. The superintendent may require that all or part of any assumed self-insured risk be retroceded to an insurance company that meets the standards for acceptance of reinsurance of workers’ compensation self-insurance.
[PL 2009, c. 335, §19 (AMD).]
SECTION HISTORY
PL 1997, c. 435, §1 (NEW). PL 2009, c. 335, §§17-19 (AMD).