A captive insurance company, including a captive insurance company organized as a reciprocal insurer under this chapter, may not join or contribute financially to a plan, pool, association, or guaranty or insolvency fund in this State, and a captive insurance company, or its insured or its parent or any affiliated company or any member organization of its association, or in the case of a captive insurance company organized as a reciprocal insurer, a subscriber of the company, may not receive a benefit from a plan, pool, association, or guaranty or insolvency fund for claims arising out of the operations of such captive insurance company. Subject to the prior written approval of the director or his designee, participation by a captive insurance company, including a pure captive insurance company, in a pool for the purpose of commercial risk sharing is not prohibited under this section. Nothing in this section may be interpreted to permit the writing of third-party risk by a captive insurance company outside of a commercial risk sharing arrangement approved by the director.

HISTORY: 2000 Act No. 331, Section 1; 2009 Act No. 28, Section 10, eff June 2, 2009; 2014 Act No. 282 (S.909), Section 16, eff June 10, 2014.

Effect of Amendment

2014 Act No. 282, Section 16, inserted "by a captive insurance company, including a pure captive insurance company," in the second sentence, and added the third sentence.