TITLE 27

Insurance

CHAPTER 27-43

Captive Insurance Companies

SECTION 27-43-1



   § 27-43-1  Definitions. –

As used in this chapter, unless the context requires otherwise:



   (1) "Affiliated company" means any corporation controlled by

or an affiliate of a parent, an industrial insured, or a member organization by

virtue of common ownership, control, operation, or management;



   (2) "Association" means any association of individuals,

corporations, partnerships, or associations that has a separate legal

existence, the member organizations of which collectively:



   (i) Own, control, or hold with power to vote all of the

outstanding voting securities of an association captive insurance company

incorporated as a stock insurance company; or



   (ii) Have complete voting control over an association captive

insurance company incorporated as a mutual insurance company;



   (3) "Association captive insurance company" means any company

that insures risks of the member organizations of the association, and their

affiliated companies;



   (4) "Captive insurance company" means any subsidiary captive

insurance company, association captive insurance company, or industrial insured

captive insurance company formed or licensed under the provisions of this

chapter, including a captive insurance company that is organized as a protected

cell company under the Protected Cell Companies Act, chapter 64 of this title;



   (5) "Commissioner" means the director of the department of

business regulation;



   (6) "Industrial insured" means an insured:



   (i) 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;



   (ii) Whose aggregate annual premiums for insurance on all

risks total at least twenty-five thousand dollars ($25,000); and



   (iii) Who has at least twenty-five (25) full-time employees;



   (7) "Industrial insured captive insurance company" means any

company that insures risks of the industrial insured that comprise the

industrial insured group, and their affiliated companies;



   (8) "Industrial insured group" means any group that meets

either of the following criteria:



   (i) Any group of industrial insured that collectively: (A)

own, control, or hold with power to vote all of the outstanding voting

securities of an industrial insured captive insurance company incorporated as a

stock insurance company, or (B) have complete voting control over an industrial

insured captive insurance company incorporated as a mutual insurance company; or



   (ii) Any group which is created under 15 U.S.C. § 3901

et seq., as a corporation or other limited liability association;



   (9) "Member organization" means any individual, corporation,

partnership, or association that belongs to an association;



   (10) "Parent" means a corporation, partnership, or individual

that directly or indirectly owns, controls, or holds with power to vote more

than fifty percent (50%) of the outstanding voting securities of a subsidiary

captive insurance company;



   (11) "Personal lines of insurance" means personal motor

vehicle, homeowner's insurance coverage, health insurance, life insurance,

worker's compensation, residential fire insurance, or any component of them; and



   (12) "Subsidiary captive insurance company" means any company

that insures risks of its parent and affiliated companies.



History of Section.

(P.L. 1988, ch. 76, § 1; P.L. 1996, ch. 232, § 1; P.L. 1996, ch. 256,

§ 1; P.L. 1999, ch. 22, § 12.)