1. (1) Except as provided in Chapter 37a, Special Purpose Financial Captive Insurance Company Act, and Subsection (2), Chapter 27a, Insurer Receivership Act, applies to a captive insurance company formed or holding a certificate of authority under this chapter.

2. (2) In the case of a sponsored captive insurance company:

   1. (a) the assets of a cell may not be used to pay an expense or claim other than one attributable to the cell; and

   2. (b) the capital and surplus of the sponsored captive insurance company:

      1. (i) shall at all times be available to pay:

         1. (A) an expense of the sponsored captive insurance company; or
         2. (B) a claim against the sponsored captive insurance company; and
      2. (ii) may not be used to pay an expense or claim attributable to a cell.

Amended by Chapter 175, 2025 General Session