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PROCEDURES
FOR FORMING A CAPTIVE OR RRG INSURANCE COMPANY Legislation allowing Captive Insurance Companies to be
LICENSED and to do business are now present in 17 states. The procedures listed below should be followed to
incorporate a captive insurer and to apply for a certificate of authority. 1. Prepare the documents needed to
incorporate the insurer. The services
of a local attorney may be desirable.
The articles of incorporation must comply with the procedures for
filing the articles of incorporation with the Commissioner of Insurance and
the Secretary of State and for obtaining the commissioner’s approval of the
proposed articles of incorporation. If
the captive insurer will be a mutual company, the bylaws must be filed and
approved by the commissioner. 2. Prepare the
documents needed for the application for certificate of authority. 3. Submit the application to the
commissioner for review. Include the
state required application fee and the states required license fee. 4. The Captive states insurance code
authorizes the commissioner to obtain services to review the application for
a captive insurer at the applicant’s expense.
If the commissioner determines that such services are needed, the
Captive/RRG will be required to submit an additional copy of the application
materials to the reviewer and the Captive/RRG will be notified of the cost. 5. Provide information concerning the
adequacy of the expertise, experience, and character of the person or persons
who will manage the captive insurer. 6. Have a CPA
complete the necessary form for authorization to perform audits. 7. Have an
actuary complete the necessary form for authorization to render the opinion
on reserves. The Insurance Department may perform an organizational
examination as soon as possible after you receive the Certificate of
Authority and have capitalized the captive.
The cost of this examination will be borne by the applicant.
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F. Darrell Lindsey State Approved Captive/RRG Manager |
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BACK – USE ARROW TO PRINT USE PRINT PREVIEW |
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