Meetings of board of directors; additional requirements to transact insurance.
1. The board of directors of a captive insurer shall meet at least one time each year in this state. The captive insurer shall:
(a) Maintain its principal place of business in this state; and
(b) Appoint a resident of this state as a registered agent to accept service of process and otherwise act on behalf of the captive insurer in this state. If the registered agent cannot be located with reasonable diligence for the purpose of serving a notice or demand on the captive insurer, the notice or demand may be served on the Secretary of State who shall be deemed to be the agent for the captive insurer.
2. A captive insurer shall not transact insurance in this state unless:
(a) The captive insurer has made adequate arrangements with a bank located in this state that is authorized pursuant to state or federal law to transfer money;
(b) If the captive insurer employs or has entered into a contract with a natural person or business organization to manage the affairs of the captive insurer, the natural person or business organization meets the standards of competence and experience satisfactory to the Commissioner;
(c) The captive insurer employs or has entered into a contract with a qualified and experienced certified public accountant or a firm of certified public accountants that is nationally recognized;
(d) The captive insurer employs or has entered into a contract with qualified, experienced actuaries to perform reviews and evaluations of the operations of the captive insurer; and
(e) The captive insurer employs or has entered into a contract with an attorney who is licensed to practice law in this state and who meets the standards of competence and experience in matters concerning the regulation of insurance in this state established by the Commissioner by regulation.
Last modified: February 27, 2006