Florida Statutes 628.914 – Minimum capitalization or reserves for captive reinsurance companies
Current as of: 2023 | Check for updates
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Terms Used In Florida Statutes 628.914
- Captive reinsurance company: means a reinsurance company that is formed and licensed under this part and is wholly owned by a qualifying reinsurance parent company. See Florida Statutes 628.901
- Office: means the Office of Insurance Regulation. See Florida Statutes 628.901
(1) The office may not issue a license to a captive reinsurance company unless the company possesses and maintains capital or unimpaired surplus of at least the greater of $300 million or 10 percent of reserves. The surplus may be in the form of cash or securities as permitted by part II of chapter 625.
(2) The office may prescribe additional capital or surplus based upon the type, volume, and nature of the insurance business transacted.
(3) A captive reinsurance company may not pay a dividend out of, or other distribution with respect to, capital or surplus in excess of the limitations without the prior approval of the office. Approval of an ongoing plan for the payment of dividends or other distributions must be conditioned upon the retention, at the time of each payment, of capital or surplus in excess of amounts specified by, or determined in accordance with formulas approved by, the office.