 |
 |
| Title
5. Administrative Procedures And Services | | Title
9-a. Maine Consumer Credit Code | | Title
9. Banks And Financial Institutions | | Title 01. General Provisions | | Title 02. Executive | | Title 03. Legislature | | Title 04. Judiciary | | Title 05. Administrative Procedures And Services | | Title 06. Aeronautics | | Title 07. Agriculture And Animals | | Title 08. Amusements And Sports | | Title 09-a. Maine Consumer Credit Code | | Title 09-b. Financial Institutions | | Title 09. Banks And Financial Institutions | | Title 10. Commerce And Trade | | Title 11. Uniform Commercial Code | | Title 12. Conservation | | Title 13-a. Maine Business Corporation Act (heading. Pl 2001, C. 640, Pt. A, @1 (rp); Pt. B, @7 (aff)) | | Title 13-b. Maine Nonprofit Corporation Act | | Title 13-c. Maine Business Corporation Act (heading. Pl 2001, C. 640, Pt. A, @2 (new); Pt. B, @7 (aff)) | | Title 13. Corporations | | Title 14. Court Procedure -- Civil | | Title 15. Court Procedure -- Criminal | | Title 16. Court Procedure -- Evidence | | Title 17-a. Maine Criminal Code | | Title 17. Crimes | | Title 18-a. Probate Code | | Title 18-b. Trusts (heading. Pl 2003, C. 618, Pt. A, @1 (new); @2 (aff) Effective 7-1-05) | | Title 18. Decedents' Estates And Fiduciary Relations | | Title 19-a. Domestic Relations (heading. Pl 1995, C. 694, Pt. B, @2 (new); Pt. E, @2 (aff)) | | Title 19. Domestic Relations (heading. Repealed 10-1-97 By Pl 1995, C. 694, Pt. B, @1 (rp); Pt. E, @2 (aff)) | | Title 20-a. Education | | Title 20. Education | | Title 21-a. Elections | | Title 21. Elections | | Title 22-a. Health And Human Services (heading. Pl 2003, C. 689, Pt. A, @1 (new)) | | Title 22. Health And Welfare | | Title 23. Highways | | Title 24-a. Maine Insurance Code | | Title 24. Insurance | | Title 25. Internal Security And Public Safety | | Title 26. Labor And Industry | | Title 27. Libraries, History, Culture And Art | | Title 28-a. Liquors (heading. Pl 1987, C. 45, Pt. A, @4 (new)) | | Title 28. Liquors (heading. Pl 1987, C. 45, Pt. A, @3 (rp)) | | Title 29-a. Motor Vehicles (heading. Pl 1993, C. 683, Pt. A, @2 (new); Pt. B, @5 (aff)) | | Title 29. Motor Vehicles (heading. Pl 1993, C. 683, @1 (rp); Pt. B, @5 (aff)) | | Title 31. Partnerships And Associations | | Title 32. Professions And Occupations | | Title 33. Property | | Title 34-a. Corrections | | Title 34-b. Behavioral And Developmental Services (heading. Pl 1995, C. 560, Pt. K, @7 (rpr); 2001, C. 354, @3 (amd)) | | Title 34. Public Institutions And Corrections (heading. Pl 1983, C. 459, @5 (rp)) | | Title 36. Taxation | | Title 37-a. Department Of Defense And Veterans Services | | Title 37-b. Defense, Veterans And Emergency Management (heading. Pl 1997, C. 455, @9 (rpr)) | | Title 37. Veterans' Services | | Title 38. Waters And Navigation | | Title 39-a. Workers' Compensation (enacted By Pl 1991, C. 885, Pt. A, @8) | | Title 39. Workers' Compensation (repealed By Pl 1991, C. 885, Pt. A, @7) |
|
|
|
|
| search a lawyer |
|
|
| ACTS, STATUTES |
|
|
|
|
|
|
|
|
|
|
|
|
| Home > Statutes > Usa Maine |
|
USA Statutes : maine
Title : Title 24-A. MAINE INSURANCE CODE
Chapter : Chapter 83. CAPTIVE INSURANCE COMPANIES (HEADING. PL 1997, c. 435, @1 (new))
|
|
Title 24-A - §6701. Definitions
Title 24-A: MAINE INSURANCE CODE
Chapter 83: CAPTIVE INSURANCE COMPANIES (HEADING: PL 1997, c. 435, @1 (new))
§6701. Definitions
As used in this chapter, unless the context otherwise indicates, the following terms have the following meanings.
[1997, c. 435, §1 (new).]
1. Affiliated company. "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.
[1997, c. 435, §1 (new).]
2. Association. "Association" means any legal association of individuals, corporations, partnerships or associations, except labor organizations,
the member organizations of which collectively:
A. Own, control or hold with power to vote all of the outstanding voting securities of an association captive insurance company
incorporated as a stock insurer; or
[1997, c. 435, §1 (new).]
B. Have complete voting control over an association captive insurance company incorporated as a mutual insurer.
[1997, c. 435, §1 (new).]
[1997, c. 435, §1 (new).]
3. Association captive insurance company. "Association captive insurance company" means any company that insures risks of the member organizations of the association
and their affiliated companies.
[1997, c. 435, §1 (new).]
4. Captive insurance company. "Captive insurance company" means any pure captive insurance company, association captive insurance company or industrial
insured captive insurance company formed or licensed under this chapter.
[1997, c. 435, §1 (new).]
5. Controlled unaffiliated business. "Controlled unaffiliated business" means a company that:
A. Is not in the corporate system of a parent and affiliated companies;
[1997, c. 435, §1 (new).]
B. Has an existing contractual relationship with a parent or affiliated company; and
[1997, c. 435, §1 (new).]
C. Is subject to rules adopted by the superintendent concerning risk management by a parent or affiliated company; however,
the superintendent may grant authority over risk management issues by temporary order until rules are adopted.
[1997, c. 435, §1 (new).]
[1997, c. 435, §1 (new).]
6. Industrial insured. "Industrial insured" means an insured:
A. 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;
[1997, c. 435, §1 (new).]
B. Whose aggregate annual premium for insurance on all risks totals at least $25,000; and
[1997, c. 435, §1 (new).]
C. Who has at least 25 full-time employees.
[1997, c. 435, §1 (new).]
[1997, c. 435, §1 (new).]
7. Industrial insured captive insurance company. "Industrial insured captive insurance company" means any company that insures risks of the industrial insureds that comprise
the industrial insured group and their affiliated companies.
[1997, c. 435, §1 (new).]
8. Industrial insured group. "Industrial insured group" means any group that meets either of the following criteria:
A. A group of industrial insureds that collectively:
(1) Owns, controls or holds with power to vote all of the outstanding voting securities of an industrial insured captive
insurance company incorporated as a stock insurer; or
(2) Has complete voting control over an industrial insured captive insurance company incorporated as a mutual insurer; or
[1997, c. 435, §1 (new).]
B. Any group created under the Product Liability Risk Retention Act of 1981, 15 United States Code, Section 3901 et seq., as
amended, as a corporation or other limited liability association taxable as a stock insurance company or a mutual insurer
under the laws of the State.
[1997, c. 435, §1 (new).]
[1997, c. 435, §1 (new).]
9. Member organization. "Member organization" means any individual, corporation, partnership or association that belongs to an association.
[1997, c. 435, §1 (new).]
10. Parent. "Parent" means a corporation, partnership or individual that directly or indirectly owns, controls or holds with power to
vote more than 50% or the outstanding voting securities of a pure captive insurance company.
[1997, c. 435, §1 (new).]
11. Pure captive insurance company. "Pure captive insurance company" means any company that insures risks of its parent, affiliated companies or controlled
unaffiliated businesses, but does not include those insurers that otherwise qualify for a certificate of authority as an insurer.
[1997, c. 435, §1 (new).]
12. Pure nonprofit captive insurance company. "Pure nonprofit captive insurance company" means a pure captive insurance company formed without capital stock as a nonprofit
corporation, whose voting of membership interest is held by a parent organization formed under a nonprofit law or by a nonprofit
parent, its or controlled unaffiliated business affiliated companies but does not include those insurers otherwise qualifying
for a certificate of authority as an insurer.
[1997, c. 435, §1 (new).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §6702. Licensing
Title 24-A: MAINE INSURANCE CODE
Chapter 83: CAPTIVE INSURANCE COMPANIES (HEADING: PL 1997, c. 435, @1 (new))
§6702. Licensing
1. Authority. A captive insurance company may not engage in the business of insurance in this State unless the company:
A. Obtains a license from the superintendent authorizing the company to do insurance business in this State;
[1997, c. 435, §1 (new).]
B. Holds at least one meeting of its board of directors, or other governing body, each year in this State. For pure captive
insurance companies and pure nonprofit captive insurance companies, the annual in-state meeting requirement may be satisfied
by a teleconferenced or videoconferenced meeting if at least one Maine resident member of the board of directors, or other
governing body, participates in the meeting from this State;
[1997, c. 583, §1 (amd).]
C. Maintains its principal place of business in this State; and
[1997, c. 435, §1 (new).]
D. Appoints a resident agent to accept service of process and to otherwise act on its behalf in this State.
[1997, c. 435, §1 (new).]
[1997, c. 583, §1 (amd).]
2. Charter and bylaws. In order to receive a license, a captive insurance company must file with the superintendent a certified copy of its charter
and bylaws, a statement under oath of its president and secretary showing its financial condition and any other statements
or documents required by the superintendent.
[1997, c. 435, §1 (new).]
3. Information required. In addition to the information required by subsection 2, an applicant captive insurance company must file with the superintendent
evidence of the following:
A. The amount and liquidity of its assets relative to the risks to be assumed;
[1997, c. 435, §1 (new).]
B. The adequacy of the expertise, experience and character of the person or persons who will manage it;
[1997, c. 435, §1 (new).]
C. The overall soundness of its plan of operation;
[1997, c. 435, §1 (new).]
D. The adequacy of the loss prevention programs of its parent or member organizations, as applicable;
[1997, c. 435, §1 (new).]
E. The character, reputation, financial standing and purposes of the incorporators;
[1997, c. 435, §1 (new).]
F. The character, reputation, financial responsibility, insurance experience and business qualifications of the officers and
directors; and
[1997, c. 435, §1 (new).]
G. Any other factors determined relevant by the superintendent in ascertaining whether the proposed captive insurance company
will be able to meet its policy obligations.
[1997, c. 435, §1 (new).]
[1997, c. 435, §1 (new).]
4. License. If the superintendent is satisfied that the documents and statements filed by the captive insurance company under subsections
2 and 3 comply with this chapter, the superintendent may grant a license authorizing it to do insurance business.
[1997, c. 435, §1 (new).]
5. Fees. A captive insurance company shall pay filing, issuance, annual continuation and reinstatement fees as provided for domestic
insurers pursuant to section 601, subsection 1.
[1997, c. 435, §1 (new).]
6. Activities. A captive insurance company may engage in the business of the following types of insurance:
A. Casualty insurance as defined by section 707, excluding the direct writing of workers' compensation insurance. Workers'
compensation risks may be reinsured by a captive insurer only as provided in section 6711;
[1997, c. 435, §1 (new).]
B. Marine and transportation insurance as defined by section 708, subsection 1;
[1997, c. 435, §1 (new).]
C. Marine protection and indemnity insurance, as defined by section 708, subsection 1;
[1997, c. 435, §1 (new).]
D. Wet marine and transportation insurance as defined by section 708, subsection 2;
[1997, c. 435, §1 (new).]
E. Property insurance as defined by section 705;
[1997, c. 435, §1 (new).]
F. Surety insurance as described in section 706;
[1997, c. 435, §1 (new).]
G. Title insurance as defined by section 709;
[1997, c. 583, §2 (amd).]
H. Reinsurance of credit life insurance and credit health insurance, as defined by section 2853, to the extent provided in
section 6711;
[1997, c. 583, §2 (amd).]
I. Reinsurance of life insurance as defined by section 702, annuities as defined by section 703 and health insurance as defined
by section 704 written in connection with the employee benefit plan or plans of the single or association parent of a captive
insurer to the extent provided in section 6711; and
[1997, c. 583, §3 (new).]
J. Financial guaranty insurance as defined in section 709-A.
[1997, c. 583, §3 (new).]
[1997, c. 583, §§2, 3 (amd).]
7. Exceptions. A captive insurance company, when permitted by its articles of association or charter, may apply to the superintendent for
a license to provide any insurance described in subsection 6, except that:
A. A pure captive insurance company may not insure any risks other than those of its parent and affiliated companies or controlled
unaffiliated businesses;
[1997, c. 435, §1 (new).]
B. An association captive insurance company may not insure any risks other than those of the member organizations of its association
and their affiliated companies;
[1997, c. 435, §1 (new).]
C. An industrial insured captive insurance company may not insure any risks other than those of the industrial insureds that
comprise the industrial insured group and their affiliated companies;
[1997, c. 435, §1 (new).]
D. A captive insurance company may not provide personal motor vehicle or homeowner's insurance coverage or any component thereof;
and
[1997, c. 435, §1 (new).]
E. A captive insurance company may not accept or cede reinsurance except as provided in section 6711.
[1997, c. 435, §1 (new).]
[1997, c. 435, §1 (new).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §6703. Names of companies
Title 24-A: MAINE INSURANCE CODE
Chapter 83: CAPTIVE INSURANCE COMPANIES (HEADING: PL 1997, c. 435, @1 (new))
§6703. Names of companies
A captive insurance company may not adopt a name that is the same as, deceptively similar to or likely to be confused with
or mistaken for any other existing business name registered in the State.
[1997, c. 435, §1 (new).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §6704. Minimum capital
Title 24-A: MAINE INSURANCE CODE
Chapter 83: CAPTIVE INSURANCE COMPANIES (HEADING: PL 1997, c. 435, @1 (new))
§6704. Minimum capital
1. Minimum capital. A pure captive insurance company, an association captive insurance company incorporated as a stock insurer or an industrial
insured captive insurance company incorporated as a stock insurer may not be issued a license unless the company has and maintains
unimpaired paid-in capital of:
A. In the case of a pure captive insurance company, not less than $100,000;
[1997, c. 435, §1 (new).]
B. In the case of an association captive insurance company incorporated as a stock insurer, not less than $400,000; and
[1997, c. 435, §1 (new).]
C. In the case of an industrial insured captive insurance company incorporated as a stock insurer, not less than $200,000.
[1997, c. 435, §1 (new).]
The superintendent may prescribe additional capital based upon the type, volume and nature of insurance business transacted.
[1997, c. 435, §1 (new).]
2. Letter of credit. The required capital may be in the form of cash, an irrevocable letter of credit issued by a bank chartered in this State
or a member bank of the Federal Reserve System or any other security approved by the superintendent.
[1997, c. 435, §1 (new).]
3. Dividends. A captive insurance company may not pay a dividend out or make any other distribution with respect to capital and surplus
in excess of the limitations under section 222 without the prior approval of the superintendent. Approval of an ongoing plan
for the payment of dividends or other distributions must be conditioned upon the retention, at the time of each payment, of
capital and surplus in excess of amounts specified by, or determined in accordance with formulas approved by, the superintendent.
[1997, c. 435, §1 (new).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §6705. Minimum surplus
Title 24-A: MAINE INSURANCE CODE
Chapter 83: CAPTIVE INSURANCE COMPANIES (HEADING: PL 1997, c. 435, @1 (new))
§6705. Minimum surplus
1. Minimum surplus. A captive insurance company may not be licensed unless the company has and maintains a free surplus of:
A. In the case of a pure captive insurance company, not less than $150,000;
[1997, c. 435, §1 (new).]
B. In the case of an association captive insurance company incorporated as a stock insurer, not less than $350,000;
[1997, c. 435, §1 (new).]
C. In the case of an industrial insured captive insurance company incorporated as a stock insurer, not less than $300,000;
[1997, c. 435, §1 (new).]
D. In the case of an association captive insurance company incorporated as a mutual insurer, not less than $750,000; and
[1997, c. 435, §1 (new).]
E. In the case of an industrial insured captive insurance company incorporated as a mutual insurer, not less than $500,000.
[1997, c. 435, §1 (new).]
The superintendent may prescribe additional surplus based upon the type, volume and nature of insurance business transacted.
[1997, c. 435, §1 (new).]
2. Letter of credit. The surplus may be in the form of cash, an irrevocable letter of credit issued by a bank chartered in this State or a member
bank of the Federal Reserve System or any other security approved by the superintendent.
[1997, c. 435, §1 (new).]
3. Dividends. A captive insurance company may not pay a dividend out or make any other distribution with respect to capital or surplus
in excess of the limitations under section 222 without prior approval of the superintendent.
[1997, c. 435, §1 (new).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §6706. Formation of captive insurance companies in this State
Title 24-A: MAINE INSURANCE CODE
Chapter 83: CAPTIVE INSURANCE COMPANIES (HEADING: PL 1997, c. 435, @1 (new))
§6706. Formation of captive insurance companies in this State
1. Pure captive insurance company. A pure captive insurance company must be incorporated:
A. As a stock insurer with capital divided into shares and held by the stockholders; or
[1997, c. 435, §1 (new).]
B. As a nonprofit corporation whose votes of membership interest are held by a parent organization formed under a nonprofit
law or by such nonprofit parent and its affiliated companies.
[1997, c. 435, §1 (new).]
[1997, c. 435, §1 (new).]
2. Association captive insurance company. An association captive insurance company or an industrial insured captive insurance company may be incorporated:
A. As a stock insurer with its capital divided into shares and held by the stockholders; or
[1997, c. 435, §1 (new).]
B. As a mutual insurer without capital stock, the governing body of which must be elected by the member organizations of its
association.
[1997, c. 435, §1 (new).]
[1997, c. 435, §1 (new).]
3. Incorporators. A captive insurance company may not have fewer than 3 incorporators, and at least 2 incorporators must be residents of this
State.
[1997, c. 435, §1 (new).]
4. Applicability of chapter 47. To the extent not inconsistent with this chapter, a captive insurance company is subject to the procedures applicable to
domestic insurers pursuant to chapter 47. With respect to mergers, consolidations, conversions and mutualizations, the superintendent,
in the superintendent's discretion, may waive any public hearing requirement.
[1997, c. 435, §1 (new).]
5. Issuance of stock. The capital stock of a captive insurance company incorporated as a stock insurer may not be issued at less than par value.
[1997, c. 435, §1 (new).]
6. Board of directors. At least one of the members of the board of directors of a captive insurance company incorporated in this State must be
a resident of this State.
[1997, c. 435, §1 (new).]
7. Captive insurance company. A captive insurance company formed under this chapter, except for a pure nonprofit captive insurance company, has the privileges
granted by and is subject to Title 13-C and this chapter. In the event of conflict between Title 13-C and this chapter, this
chapter controls.
[RR 2001, c. 2, Pt. B, §45 (cor); §58 (aff).]
8. Pure nonprofit captive insurance company. A pure nonprofit captive insurance company formed under this chapter has the privileges granted by and is subject to Title
13-B and this chapter. In the event of conflict between Title 13-B and this chapter, this chapter controls.
[1997, c. 435, §1 (new).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §6707. Financial statements and other reports
Title 24-A: MAINE INSURANCE CODE
Chapter 83: CAPTIVE INSURANCE COMPANIES (HEADING: PL 1997, c. 435, @1 (new))
§6707. Financial statements and other reports
1. Financial statement. A captive insurance company shall submit an annual statement of financial condition written according to generally accepted
accounting principles and audited by an independent certified public accountant to the superintendent on or before the last
day of the 6th month following the end of the company's fiscal year.
[1997, c. 435, §1 (new).]
2. Annual report. An association captive insurance company or industrial insured captive insurance company shall file an annual statement
in accordance with statutory accounting practices, which must be a true statement of its financial condition, transactions
and affairs as of the immediately preceding December 31st, in general form and context as approved by the National Association
of Insurance Commissioners, or other format prescribed by the superintendent, verified by oaths of at least 2 of the insurer's
principal officers.
[1997, c. 583, §4 (amd).]
3. Reserves. The statements required under subsections 1 and 2 must include, but are not limited to, actuarially appropriate reserves
for:
A. Known claims and associated expenses;
[1997, c. 435, §1 (new).]
B. Claims incurred but not reported and associated expenses;
[1997, c. 435, §1 (new).]
C. Unearned premiums; and
[1997, c. 435, §1 (new).]
D. Bad debts, reserves for which must be shown as liabilities.
[1997, c. 435, §1 (new).]
An actuarial opinion regarding reserves for known claims and claims incurred but not reported, and expenses associated with
those claims, must be included in the audited statements. The actuarial opinion must be given by a member of the American
Academy of Actuaries or other qualified loss reserve specialist as defined in the annual statement adopted by the National
Association of Insurance Commissioners.
[1997, c. 435, §1 (new).]
4. Other reports. The superintendent may prescribe the format and frequency of other reports, which may include, but are not limited to, summary
loss reports and quarterly financial statements.
[1997, c. 435, §1 (new).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §6708. Examinations and investigations
Title 24-A: MAINE INSURANCE CODE
Chapter 83: CAPTIVE INSURANCE COMPANIES (HEADING: PL 1997, c. 435, @1 (new))
§6708. Examinations and investigations
1. Powers, authorities and duties of superintendent. The powers, authorities and duties relating to examinations and investigations vested in and imposed upon the superintendent
pursuant to chapter 3 are extended to and imposed upon the superintendent in respect to examinations of captive insurance
companies to the same extent they would otherwise be applicable with respect to domestic insurers.
[1997, c. 435, §1 (new).]
2. Confidentiality of examinations documents. All examination reports, preliminary examination reports or results, working papers, recorded information, documents and
copies of any of these produced by, obtained by or disclosed to the superintendent or any other person in the course of an
examination made under this section are confidential and are not subject to subpoena and may not be made public by the superintendent
or any other person, except to the extent provided in this subsection. The superintendent may grant access to such information
to public officers having jurisdiction over the regulation of insurance in any other state or country or to law enforcement
officers of this State or any other state or agency of the Federal Government at any time, as long as the officers receiving
the information agree in writing to hold it in a manner consistent with this subsection.
[1997, c. 435, §1 (new).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §6709. Grounds and procedures for suspension and revocation of license
Title 24-A: MAINE INSURANCE CODE
Chapter 83: CAPTIVE INSURANCE COMPANIES (HEADING: PL 1997, c. 435, @1 (new))
§6709. Grounds and procedures for suspension and revocation of license
1. Grounds for suspension or revocation. The superintendent may suspend or revoke the license of a captive insurance company for any of the following reasons:
A. Insolvency or impairment of capital or surplus;
[1997, c. 435, §1 (new).]
B. Failure to meet the requirements of section 6704 or 6705;
[1997, c. 435, §1 (new).]
C. Refusal or failure to submit an annual report required by section 6707 or any other report or statement required by law
or by lawful order of the superintendent;
[1997, c. 435, §1 (new).]
D. Failure to comply with the provisions of the company's charter or bylaws;
[1997, c. 435, §1 (new).]
E. Failure to submit to examination or any legal obligation as required by section 6708;
[1997, c. 435, §1 (new).]
F. Refusal or failure to pay the cost of examination required by sections 228 and 6708;
[1997, c. 435, §1 (new).]
G. Use of methods that, although not otherwise specifically prohibited by law, nevertheless render the company's operation
detrimental or the company's condition unsound with respect to the public or to its policyholders;
[1997, c. 435, §1 (new).]
H. Failure to maintain actuarially appropriate loss reserves as determined by the superintendent, except that the superintendent
shall issue at least one warning to the captive insurance company requiring it to correct the problem prior to suspending
or revoking the license; and
[1997, c. 435, §1 (new).]
I. Failure otherwise to comply with the laws of this State.
[1997, c. 435, §1 (new).]
[1997, c. 435, §1 (new).]
2. Procedure. Notwithstanding any other law, if the superintendent, upon examination, hearing or other evidence, finds that a captive
insurance company has committed any of the acts specified in subsection 1, the superintendent may suspend or revoke the license
if the superintendent determines that it is in the best interest of the public and the policyholders of the captive insurance
company.
[1997, c. 435, §1 (new).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §6710. Legal investments
Title 24-A: MAINE INSURANCE CODE
Chapter 83: CAPTIVE INSURANCE COMPANIES (HEADING: PL 1997, c. 435, @1 (new))
§6710. Legal investments
A captive insurance company is subject to the restrictions on allowable investments provided under chapter 13, except that
a pure captive insurance company may petition the superintendent for approval of investments that are not specified in this
Title.
[1997, c. 435, §1 (new).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §6711. Reinsurance
Title 24-A: MAINE INSURANCE CODE
Chapter 83: CAPTIVE INSURANCE COMPANIES (HEADING: PL 1997, c. 435, @1 (new))
§6711. Reinsurance
1. Reinsurance. A captive insurance company may provide reinsurance on risks ceded by any other insurer; however, the ceding of insurance
by a domestic insurer may be done only pursuant to section 731-B.
[1997, c. 435, §1 (new).]
2. Credit for reserves. A captive insurance company may take credit for reserves on risks ceded to a reinsurer, except that a captive insurance
company may not cede risks without the approval of the superintendent.
[1997, c. 435, §1 (new).]
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.
[1997, c. 435, §1 (new).]
4. Reinsurance of workers' compensation risks. A captive insurance company may reinsure workers' compensation risks of a qualified self-insured plan of its parent and
affiliated companies to the extent that these risks are insured by an insurance company that meets the standards for acceptance
of reinsurance of workers' compensation self-insurance.
[1997, c. 435, §1 (new).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §6712. Rating organizations
Title 24-A: MAINE INSURANCE CODE
Chapter 83: CAPTIVE INSURANCE COMPANIES (HEADING: PL 1997, c. 435, @1 (new))
§6712. Rating organizations
A captive insurance company is not required to become a member of a rating organization.
[1997, c. 435, §1 (new).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §6713. Exemption from compulsory associations
Title 24-A: MAINE INSURANCE CODE
Chapter 83: CAPTIVE INSURANCE COMPANIES (HEADING: PL 1997, c. 435, @1 (new))
§6713. Exemption from compulsory associations
A captive insurance company may not join or contribute financially to any plan, pool, association or guaranty or insolvency
fund in this State, and a captive insurance company and its insureds, its parent or any affiliated company or member organization
of its association may not receive any benefit from the plan, pool, association or guaranty or insolvency fund for claims
arising out of the operations of the captive insurance company.
[1997, c. 435, §1 (new).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §6714. Delinquent captive insurers
Title 24-A: MAINE INSURANCE CODE
Chapter 83: CAPTIVE INSURANCE COMPANIES (HEADING: PL 1997, c. 435, @1 (new))
§6714. Delinquent captive insurers
The provisions of chapter 47 apply to captive insurers.
[1997, c. 435, §1 (new).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §6715. Confidential information
Title 24-A: MAINE INSURANCE CODE
Chapter 83: CAPTIVE INSURANCE COMPANIES (HEADING: PL 1997, c. 435, @1 (new))
§6715. Confidential information
All information submitted to the superintendent pursuant to section 6702, subsection 3 is confidential and is not a public
record within the meaning of Title 1, chapter 13, subchapter I. Each report or statement filed with the superintendent pursuant
to section 6707, except those filed by or with respect to industrial insured groups as defined in section 6701, subsection
8, is confidential and is not a public record within the meaning of Title 1, chapter 13, subchapter I. The confidential nature
of this information does not limit the ability of the superintendent, in the superintendent's discretion, to disclose such
information to a public official in another state, as long as the public official agrees in writing to maintain the confidentiality
of such information and the laws of the state in which the public official serves designate such information as confidential.
[1997, c. 583, §5 (amd).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §6716. Redomestication; approval as a domestic captive insurer
Title 24-A: MAINE INSURANCE CODE
Chapter 83: CAPTIVE INSURANCE COMPANIES (HEADING: PL 1997, c. 435, @1 (new))
§6716. Redomestication; approval as a domestic captive insurer
1. Procedure. A foreign or alien captive insurance company may become a domestic captive insurance company by:
A. Complying with all of the requirements relating to the organization and licensing of a domestic captive insurance company
of the same type and any requirements that the superintendent may adopt by rule;
[1997, c. 435, §1 (new).]
B. Amending the articles of incorporation or other organizational document to comply with the laws of this State. The document
must be restated in its entirety before its submission to the superintendent. Before the amended and restated articles of
incorporation or other organizational document is transmitted to the Secretary of State, the foreign or alien captive insurance
company shall petition the superintendent to issue a certificate setting forth the superintendent's finding that the redomestication
and maintenance of the corporation satisfies paragraph A and will promote the general good of the State. The company's petition
must be accompanied by a redomestication fee of $500. In arriving at the finding, the superintendent shall consider:
(1) The character, reputation, financial standing and purposes of the foreign or alien captive insurance company;
(2) The character, reputation, financial responsibility, insurance experience and business qualifications of the officers
and directors; and
(3) Any other aspects the superintendent determines advisable;
[1997, c. 435, §1 (new).]
C. Transmitting the following to the Secretary of State for filing:
(1) The articles of redomestication including the filing fee as provided by either Title 13-B, section 1401, subsection
13 or Title 13-C, section 123, subsection 1, paragraph L and this information required by a new domestic or domestic nonprofit
corporation on a form prescribed by the Secretary of State;
(2) The certificate of general good issued by the superintendent;
(3) The certificate of good standing duly authenticated by the proper officer of the state or country under the laws of
which the foreign or alien captive insurance company is incorporated. The certificate may not be dated earlier than 30 days
prior to the filing of the articles of redomestication. If the certificate of good standing is in a foreign language, a translation
under oath of the translator must accompany the certificate;
(4) Amendments to the articles of incorporation or other organizational document in compliance with the laws of this State;
and
(5) The restatement of the articles of incorporation or other organizational document in its entirety; and
[RR 2001, c. 2, Pt. B, §46 (cor); §58 (aff).]
D. Stating in the articles of redomestication:
(1) The name of the corporation;
(2) The date of incorporation and state or country of incorporation;
(3) The street address of the principal office in this State;
(4) The names and titles of the officers and directors of the corporation;
(5) A statement that the corporation is moving its domicile from its present state or country to this State;
(6) A statement that redomestication will occur upon filing the articles of redomestication and that the corporation is
subject to the laws of this State; and
(7) A statement that copies of the articles of incorporation or other organizational document and any amendments certified
by the proper officer of the state or country under the laws of which the corporation is incorporated are attached. If any
of these documents are in a foreign language, a translation under oath of the translator must accompany these documents.
[1997, c. 435, §1 (new).]
[RR 2001, c. 2, Pt. B, §46 (cor); §58 (aff).]
2. Licensure. Upon payment to the superintendent of the issuance fee set forth in section 601, subsection 1, the domestic captive insurance
company is entitled to the necessary or appropriate certificates and licenses to do business in this State and is subject
to the authority and jurisdiction of this State. A captive insurance company redomesticating into this State need not merge,
consolidate, transfer assets or otherwise engage in any other reorganization other than as specified in this section.
[1997, c. 435, §1 (new).]
3. Rights and privileges; liabilities. Upon redomestication in accordance with this section, the foreign or alien captive insurance company becomes a domestic
captive insurance company organized under the laws of this State and has all the rights, privileges, immunities and powers
and is subject to all applicable laws, duties and liabilities of a domestic captive insurance company of the same type. The
domestic captive insurance company possesses all rights that it had prior to the redomestication to the extent permitted by
the laws of this State and is responsible and liable for all the liabilities and obligations that it was subject to prior
to the redomestication. All outstanding policies of the captive insurance company remain in full force and effect.
[1997, c. 435, §1 (new).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §6717. Redomestication; conversion to foreign insurer
Title 24-A: MAINE INSURANCE CODE
Chapter 83: CAPTIVE INSURANCE COMPANIES (HEADING: PL 1997, c. 435, @1 (new))
§6717. Redomestication; conversion to foreign insurer
1. Transfer of domicile. A domestic captive insurance company, upon approval by the superintendent, may transfer its domicile to any other jurisdiction
in accordance with the laws of that jurisdiction.
[1997, c. 435, §1 (new).]
2. Notice of intent to transfer required. Before transferring its domicile to any other jurisdiction and before the notice of change in domicile is transmitted to
the Secretary of State, the domestic captive insurance company shall deliver to the superintendent a notice of intent to transfer,
along with payment of a transfer fee of $500, and shall petition the superintendent to issue a certificate of transfer.
[1997, c. 435, §1 (new).]
3. Contents of notice. The notice of change in domicile, the certificate of transfer issued by the superintendent, the proof of redomestication
and the filing fee of either $35 in the case of a company governed by Title 13-C or $5 in the case of a company governed by
Title 13-B must be transmitted to the Secretary of State. The notice of the change in domicile must contain the following:
A. Name of the corporation;
[1997, c. 435, §1 (new).]
B. Dates that notice of the corporation's intent to transfer domicile from this State was published, once in each of 4 successive
weeks in 4 publications in a newspaper of general circulation published in this State;
[1997, c. 435, §1 (new).]
C. Date of the transfer of its domicile; and
[1997, c. 435, §1 (new).]
D. State or country to which its domicile will be transferred.
[1997, c. 435, §1 (new).]
[RR 2001, c. 2, Pt. B, §47 (cor); §58 (aff).]
4. Effect of transfer. Upon any transfer authorized pursuant to this section, the captive insurance company ceases to be domiciled in this State,
and its corporate or other legal existence in this State ceases upon the issuance of a certificate of discontinuance by the
Secretary of State.
[1997, c. 435, §1 (new).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §6718. Rules
Title 24-A: MAINE INSURANCE CODE
Chapter 83: CAPTIVE INSURANCE COMPANIES (HEADING: PL 1997, c. 435, @1 (new))
§6718. Rules
The superintendent may adopt rules to implement this chapter. Rules adopted pursuant to this chapter are routine technical
rules as defined in Title 5, chapter 375, subchapter II-A.
[1997, c. 435, §1 (new).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §6719. Laws applicable
Title 24-A: MAINE INSURANCE CODE
Chapter 83: CAPTIVE INSURANCE COMPANIES (HEADING: PL 1997, c. 435, @1 (new))
§6719. Laws applicable
An insurance law of this State, other than described or referenced in this chapter, does not apply to a captive insurance
company.
[1997, c. 435, §1 (new).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §6720. Fees, taxes and assessments
Title 24-A: MAINE INSURANCE CODE
Chapter 83: CAPTIVE INSURANCE COMPANIES (HEADING: PL 1997, c. 435, @1 (new))
§6720. Fees, taxes and assessments
Except as otherwise specified in this chapter, all fees, taxes and assessments as set out in sections 237, 601 and 602 apply
to captive insurers in the same manner as they apply to other insurers.
[1997, c. 435, §1 (new).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
|
|
|
|
