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CAPTIVE MANAGER RESPONSIBILITIES

 

1.        Written Service Agreements.

A.                Must enter written services agreement with captives under management, describing services to be provided by the Captive Manager and methods of compensation.

 

B.               If the Captive Manager performs the duties of an insurance managing general agent, reinsurance intermediary, third party administrator, broker or agent, the manager must also be authorized by the Department of Insurance and Securities Regulation to perform these functions.

 

2.        Basic Services that must be provided by all Captive Managers include:

A.                Communications.

i.                   Maintain a place of business that will be the home office of the Captive in the State of Domicile.

ii.                 Inform the Department of any changes in contact names, addresses and phone numbers.

 

B.               Reporting.

i.                   Provide a report of the financial condition of the captive to the captive shareholder(s) at least four times a year.

 

ii.                 Report must include the following Captive Ratios:

a.     Retained Loss and Allocated Loss Adjustment Expense/Net Written Premiums;

 

b.     Acquisition costs and General and Administrative Expense/Net Written Premiums;

 

c.     Unimpaired Surplus/Outstanding Loss Reserves or Policy Reserves;

 

d.     Net aggregate multi-line annual risk retained/net written premium plus capital and surplus.

 

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