1. A. A captive reinsurance company must be incorporated as a stock insurer with its capital divided into shares and held by its shareholders.
2. B. A captive reinsurance company may not have fewer than three incorporators of whom at least two must be residents of this state.

3. C. Before the articles of incorporation are transmitted to the Secretary of State, the incorporators shall petition the Insurance Commissioner to issue a certificate finding that the establishment and maintenance of the proposed corporation promotes the general good of this state. In arriving at this finding, the Insurance Commissioner shall consider:

   1. 1. The character, reputation, financial standing, and purposes of the incorporators;
   2. 2. The character, reputation, financial responsibility, insurance experience, and business qualifications of the officers and directors; and
   3. 3. Other factors the Insurance Commissioner considers advisable.
4. D. The capital stock of a captive reinsurance company must be issued at par value or greater.
5. E. At least one of the members of the board of directors of a captive reinsurance company incorporated in this state must be a resident of this state.

Added by Laws 2004, HB 2141, c. 334, § 16, emerg. eff. May 25, 2004.