Maine Revised Statutes Title 24-A Sec. 6721 – Rules for controlled unaffiliated business
Current as of: 2023 | Check for updates
|
Other versions
Terms Used In Maine Revised Statutes Title 24-A Sec. 6721
- Affiliated company: means any company in the same corporate system as a parent or a member organization by virtue of common ownership, control, operation or management. See Maine Revised Statutes Title 24-A Sec. 6701
- Captive 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
- Controlled unaffiliated business: means a business entity that has a contractual relationship, such as a subcontractor or franchisee relationship, with the parent of a pure captive insurance company or with one or more of its affiliates, satisfying the following criteria:
A. See Maine Revised Statutes Title 24-A Sec. 6701Parent: 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 Pure captive insurance company: includes , with respect to operations in this State unless otherwise restricted by the superintendent, a branch captive insurance company. See Maine Revised Statutes Title 24-A Sec. 6701
The superintendent may adopt rules establishing standards to ensure that a parent or affiliated company is able to exercise control of the risk management function of any controlled unaffiliated business to be insured by a pure captive insurance company. In the absence of any rules, the superintendent may approve the coverage of such risks by a pure captive insurance company upon request. Any rules adopted by the superintendent pursuant to this section are routine technical rules as described in Title 5, chapter 375, subchapter 2?A. [PL 2009, c. 335, §21 (NEW).]
SECTION HISTORY
PL 2009, c. 335, §21 (NEW).