1. A. A captive reinsurance company, if permitted by its articles of incorporation or charter, may apply to the Insurance Commissioner for a license to write reinsurance covering property and casualty insurance or reinsurance contracts. A captive reinsurance company authorized by the Insurance Commissioner may write reinsurance contracts covering risks in any state.

2. B. To conduct business in this state, a captive reinsurance company shall:

   1. 1. Obtain from the Insurance Commissioner a license authorizing it to conduct business as a captive reinsurance company in this state;
   2. 2. Hold at least one meeting of the board of directors each year in this state;
   3. 3. Maintain its principal place of business in this state; and
   4. 4. Appoint a registered agent to accept service of process and act otherwise on its behalf in this state.

3. C. Before receiving a license, a captive reinsurance company shall file with the Insurance Commissioner:

   1. 1. A certified copy of its charter and bylaws;
   2. 2. A statement under oath of its president and secretary showing its financial condition; and
   3. 3. Other documents required by the Insurance Commissioner.

4. D. In addition to the information required by subsection C of this section, the applicant captive reinsurance company shall file with the Insurance Commissioner evidence of:

   1. 1. The amount and liquidity of its assets relative to the risks to be assumed;
   2. 2. The adequacy of the expertise, experience, and character of the person who manages it;
   3. 3. The overall soundness of its plan of operation; and
   4. 4. Other overall factors considered relevant by the Insurance Commissioner in ascertaining if the proposed captive reinsurance company is able to meet its policy obligations.

5. E. Information submitted pursuant to this section is confidential and may not be made public by the Insurance Commissioner or an agent or employee of the Insurance Commissioner without the written consent of the company, except that:

   1. 1. Information may be discoverable by a party in a civil action or contested case to which the submitting captive reinsurance company is a party, upon a showing by the party seeking to discover the information that:

      1. a. the information sought is relevant to and necessary for the furtherance of the action or case,
      2. b. the information sought is unavailable from other nonconfidential sources, and
      3. c. a subpoena issued by a judicial or administrative law officer of competent jurisdiction has been submitted to the Insurance Commissioner; and

   2. 2. The Insurance Commissioner may disclose the information to the public officer having jurisdiction over the regulation of insurance in another state if:

      1. a. the public official agrees in writing to maintain the confidentiality of the information, and
      2. b. the laws of the state in which the public official serves require the information to be confidential.
6. F. The provisions of subsection E of this section do not apply to an industrial insured captive reinsurance company insuring the risks of an industrial insured group.

Added by Laws 2004, HB 2141, c. 334, § 11, emerg. eff. May 25, 2004.