“Association captive insurer” defined. “Association captive insurer” means a captive insurer that only insures risks of the member organizations of an association and the affiliated companies of those members, including groups formed pursuant to the Product Liability Risk Retention Act of 1981, as amended, 15 U.S.C. §§ 3901 et seq., if:
1. The association or the member organizations of the association:
(a) Own, control or hold with the power to vote all the outstanding voting securities of the association captive insurer, if the association captive insurer is incorporated as a stock insurer; or
(b) Have complete voting control over the captive insurer, if the captive insurer is formed as a mutual insurer; and
2. The member organizations of the association collectively constitute all the subscribers of the captive insurer, if the captive insurer is formed as a reciprocal insurer.
Last modified: February 27, 2006