Terms Used In Rhode Island General Laws > Chapter 27-43 - Captive Insurance Companies

• Affiliated company: means any corporation controlled by or an affiliate of a parent, an industrial insured, or a member organization by virtue of common ownership, control, operation, or management. See Rhode Island General Laws 27-43-1
• Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
• Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
• Association: means any association of individuals, corporations, partnerships, or associations that has a separate legal existence, the member organizations of which collectively:

  (i)  Own, control, or hold with power to vote all of the outstanding voting securities of an association captive insurance company incorporated as a stock insurance company; or

  (ii)  Have complete voting control over an association captive insurance company incorporated as a mutual insurance company. See Rhode Island General Laws 27-43-1

• Association captive insurance company: means any company that insures risks of the member organizations of the association, and their affiliated companies. See Rhode Island General Laws 27-43-1
• Captive insurance company: means any subsidiary captive insurance company, association captive insurance company, or industrial insured captive insurance company formed or licensed under the provisions of this chapter, including a captive insurance company that is organized as a protected cell company under the Protected Cell Companies Act, chapter 64 of this title. See Rhode Island General Laws 27-43-1
• Commissioner: means the director of the department of business regulation. See Rhode Island General Laws 27-43-1
• Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
• 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.
• Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
• Federal Reserve System: The central bank of the United States. The Fed, as it is commonly called, regulates the U.S. monetary and financial system. The Federal Reserve System is composed of a central governmental agency in Washington, D.C. (the Board of Governors) and twelve regional Federal Reserve Banks in major cities throughout the United States. ^{Source: OCC}
• Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
• in writing: include printing, engraving, lithographing, and photo-lithographing, and all other representations of words in letters of the usual form. See Rhode Island General Laws 43-3-16
• Industrial insured: means an insured:

  (i)  Who procures the insurance of any risk or risks by use of the services of a full-time employee acting as an insurance manager or buyer;

  (ii)  Whose aggregate annual premiums for insurance on all risks total at least twenty-five thousand dollars ($25,000); and

  (iii)  Who has at least twenty-five (25) full-time employees. See Rhode Island General Laws 27-43-1

• Industrial insured captive insurance company: means any company that insures risks of the industrial insured that comprise the industrial insured group, and their affiliated companies. See Rhode Island General Laws 27-43-1
• Industrial insured group: means any group that meets either of the following criteria:

  (i)  Any group of industrial insureds that collectively: (A) Own, control, or hold with power to vote all of the outstanding voting securities of an industrial insured captive insurance company incorporated as a stock insurance company, or (B) Have complete voting control over an industrial insured captive insurance company incorporated as a mutual insurance company; or

  (ii)  Any group created under Rhode Island General Laws 27-43-1

• 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.
• Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
• Member organization: means any individual, corporation, partnership, or association that belongs to an association. See Rhode Island General Laws 27-43-1
• Parent: means a corporation, partnership, or individual that directly or indirectly owns, controls, or holds with power to vote more than fifty percent (50%) of the outstanding voting securities of a subsidiary captive insurance company. See Rhode Island General Laws 27-43-1
• Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
• person: may be construed to extend to and include co-partnerships and bodies corporate and politic. See Rhode Island General Laws 43-3-6
• Personal lines of insurance: means personal motor vehicle, homeowner's insurance coverage, health insurance, life insurance, workers' compensation, residential fire insurance, or any component of them. See Rhode Island General Laws 27-43-1
• Quorum: The number of legislators that must be present to do business.
• Service of process: The service of writs or summonses to the appropriate party.
• Subpoena: A command to a witness to appear and give testimony.
• Subsidiary captive insurance company: means any company that insures risks of its parent and affiliated companies. See Rhode Island General Laws 27-43-1