§431:19-102  Certificate of authority.  (a)  When permitted by an applicant captive insurance company's organizational documents, the applicant captive insurance company may apply to the commissioner for a certificate of authority to do any and all insurance set forth in subsection (h); provided that:

     (1)  No pure captive insurance company may insure or reinsure any risks other than those of its parent, affiliated entities, and controlled unaffiliated businesses, which shall be approved on a case by case basis;

     (2)  No association captive insurance company may insure any risks other than those of its association, those of the member organizations of its association, and those of a member organization's affiliated entities;

     (3)  Unless otherwise allowed under section 431:19-102.2, no captive insurance company may provide personal motor vehicle or homeowner's insurance coverage or any component thereof, other than as:

          (A)  Employee benefits for the employees of a parent, association, or its members, and their respective affiliated entities; or

          (B)  Reinsurance as may be allowed under this article; and

     (4)  No captive insurance company may accept or cede insurance except as provided in section 431:19-111.

     (b)  No captive insurance company shall do any insurance business in this State unless:

     (1)  It first obtains from the commissioner a certificate of authority authorizing it to do insurance business in this State;

     (2)  Its governing body holds at least one meeting each year in this State;

     (3)  It maintains its principal place of business and registered office in this State, except that a branch captive insurance company need only maintain the principal place of a business unit in this State; and

     (4)  It designates a registered resident agent in accordance with chapter 414, 414D, or 428, as applicable, to accept service of process and to otherwise act on its behalf in this State.  Whenever the registered resident agent cannot, with reasonable diligence, be found at the registered office of the captive insurance company, the commissioner shall be an agent of the captive insurance company upon whom any process, notice, or demand may be served in accordance with section 431:2-206.

     (c)  Before an applicant captive insurance company receives a certificate of authority, the applicant captive insurance company shall file with the commissioner:

     (1)  A certified copy of its organizational documents;

     (2)  A statement under oath of:

          (A)  Any two of its principal officers;

          (B)  Its attorney-in-fact in the case of a captive insurance company formed as a reciprocal insurer; or

          (C)  The duly authorized representative of its governing body,

          showing its financial condition; and

     (3)  Any other statements or documents required by the commissioner.

     (d)  In addition to the information required by subsection (c), each applicant captive insurance company shall file with the commissioner evidence of the following:

     (1)  The amount and liquidity of its assets relative to the risks to be assumed;

     (2)  The adequacy of the expertise, experience, and character of the person or persons who will manage it;

     (3)  The overall soundness of its plan of operation, including the net retained risk on any one subject of insurance;

     (4)  The adequacy of the loss prevention programs of its parent or member organizations as applicable; and

     (5)  Any other factors deemed relevant by the commissioner in ascertaining whether the proposed captive insurance company will be able to meet its policy obligations.

     (e)  Each applicant captive insurance company shall pay to the commissioner a nonrefundable application fee for examining, investigating, and processing its application for the certificate of authority.  Upon approval of the application for the certificate of authority, the applicant captive insurance company shall pay to the commissioner a license fee for the certificate of authority.  Thereafter, the captive insurance company shall pay to the commissioner an annual renewal fee.  The amount of the nonrefundable application fee, license fee, and renewal fee shall be set forth in rules adopted by the commissioner.  In addition, the commissioner may adopt rules with respect to fees for the issuance of other documents as may be deemed necessary or requested by captive insurance companies.

     (f)  The commissioner may use independent advisors and consultants to assist in the review and analysis of a specific application or business plan amendment.  The independent advisory and consulting fee, to be paid by the applicant captive insurance company, shall be a reasonable fee authorized by the commissioner pursuant to section 431:19-114.

     (g)  If the commissioner is satisfied that the documents and statements filed by the captive insurance company comply with this article, the commissioner may issue a certificate of authority authorizing it to do insurance business in this State until April 1 thereafter, which certificate of authority may be renewed.

     (h)  A captive insurance company may engage in the business of any of the following types of insurance:

     (1)  All casualty insurance;

     (2)  Marine and transportation insurance;

     (3)  Marine protection and indemnity insurance, which includes insurance against, or against legal liability of the insured for loss, damage, or expense arising out of or incident to, the ownership, operation, chartering, maintenance, use, repair, or construction of a vessel, craft, or instrumentality in use in ocean or inland waterways, including liability of the insured for personal injury, illness, death, or for loss of or damage to the property of another person;

     (4)  Wet marine and transportation insurance, which is that part of marine and transportation insurance that includes only:

          (A)  Insurance upon vessels, crafts, hulls, and of interests therein or with relation thereto;

          (B)  Insurance of marine builder's risks, marine war risks and contracts, or marine protection and indemnity insurance;

          (C)  Insurance of freights and disbursements pertaining to a subject of insurance; and

          (D)  Insurance of personal property and interests therein, in the course of exportation from or importation into any country, and in the course of transportation coastwise or on inland waters, including transportation by land, water, or air from point of origin to final destination, with respect to, appertaining to, or in connection with any and all risks or perils of navigation, transit, or transportation, and while being prepared for and while awaiting shipment, and during delays, storage, transshipment, or reshipment incident thereto;

     (5)  Property insurance;

     (6)  Surety insurance;

     (7)  Title insurance;

     (8)  Credit life insurance and credit disability insurance offered as part of, or relating directly to the business or operations of its parent or affiliated entities; and

     (9)  Other lines of insurance that the commissioner may allow.

     (i)  No risk retention captive insurance company may insure any risks other than those allowed under chapter 431K. [L 1987, c 347, pt of §2; am L 1988, c 187, §9; am L 1989, c 195, §40; am L 1990, c 254, §1; am L 1997, c 16, §2; am L 1998, c 150, §3; am L 1999, c 174, §1; am L 2000, c 133, §2; am L 2003, c 209, §2; am L 2004, c 122, §77; am L 2005, c 31, §3; am L 2007, c 232, §3; am L 2012, c 253, §6]