Maine Revised Statutes Title 24-A Sec. 6706 – Formation of captive insurance companies in this State
Current as of: 2023 | Check for updates
|
Other versions
1. Pure captive insurance company. A pure captive insurance company must be:
A. Incorporated as a stock insurer with capital divided into shares and held by the stockholders; [PL 2009, c. 335, §12 (AMD).]
B. Incorporated as a nonprofit corporation whose votes of membership interest are held by a parent organization formed under a nonprofit law or by such nonprofit corporation with one or more members; or [PL 2009, c. 335, §12 (AMD).]
C. Organized as a limited liability company with a limited liability company agreement approved by the superintendent. [PL 2017, c. 169, Pt. G, §4 (AMD).]
[PL 2017, c. 169, Pt. G, §4 (AMD).]
Terms Used In Maine Revised Statutes Title 24-A Sec. 6706
- Association: means any legal association of individuals, corporations, limited liability companies, partnerships or associations that have been in continuous existence for at least one year, the member organizations of which:
A. See Maine Revised Statutes Title 24-A Sec. 6701Association captive insurance company: means any company that insures risks of the member organizations of the association and their affiliated companies. See Maine Revised Statutes Title 24-A Sec. 6701 Captive insurance company: means any pure captive insurance company, sponsored captive insurance company, association captive insurance company or industrial insured captive insurance company formed or licensed under this chapter. See Maine Revised Statutes Title 24-A Sec. 6701 Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name. health insurance: means insurance of human beings against bodily injury, disablement or death by accident or accidental means, or the expense thereof, or against disablement or expense resulting from sickness, and every insurance appertaining thereto, including provision for the mental and emotional welfare of human beings by defraying the costs of legal services only to the extent provided for in chapter 38. See Maine Revised Statutes Title 24-A Sec. 704 Industrial insured: means an insured:
A. See Maine Revised Statutes Title 24-A Sec. 6701Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases. Parent: means a corporation, limited liability company, partnership or individual that directly or indirectly owns, controls or holds with power to vote more than 50% of the outstanding voting securities of a pure captive insurance company organized as a stock corporation or 50% of the membership interests of a pure captive insurance company organized as a nonprofit corporation. See Maine Revised Statutes Title 24-A Sec. 6701 Pure captive insurance company: includes , with respect to operations in this State unless otherwise restricted by the superintendent, a branch captive insurance company. See Maine Revised Statutes Title 24-A Sec. 6701 Pure nonprofit captive insurance company: means a pure captive insurance company formed without capital stock as a nonprofit corporation, whose voting or membership interest is held by a parent organization formed under a nonprofit law. See Maine Revised Statutes Title 24-A Sec. 6701 Quorum: The number of legislators that must be present to do business.
2. Association captive insurance company. An association captive insurance company or an industrial insured captive insurance company may be:
A. Incorporated as a stock insurer with its capital divided into shares and held by the stockholders; [RR 2009, c. 1, §17 (COR).]
B. Incorporated as a mutual insurer without capital stock, the governing body of which must be elected by the member organizations of its association; [PL 2009, c. 335, §12 (AMD).]
C. Organized as a reciprocal insurer in accordance with this Title; or [PL 2009, c. 335, §12 (NEW).]
D. Organized as a limited liability company with a limited liability company agreement approved by the superintendent. [PL 2017, c. 169, Pt. G, §5 (AMD).]
[PL 2017, c. 169, Pt. G, §5 (AMD).]
2-A. Association captive insurance company providing health insurance. An association captive insurance company that provides health insurance may elect to require, in its plan of operation, that all association members who participate in the health insurance be jointly and severally liable for the health insurance obligations of the association captive insurance company and meet the financial criteria and employer required wellness criteria established in the plan of operation. The wellness criteria may not have the effect of making health status a condition of eligibility for any association member. The superintendent may not require joint and several liability as a condition of approval of an application.
[PL 2011, c. 90, Pt. I, §4 (NEW).]
3. Incorporators. A captive insurance company, other than a limited liability company, may not have fewer than 3 incorporators or 3 organizers of whom at least one must be a resident of this State. If the captive insurance company is a limited liability company, its certificate of formation must be executed by a resident of this State.
[PL 2017, c. 169, Pt. G, §6 (AMD).]
4. Applicability of chapter 47. To the extent consistent with this chapter, a captive insurance company is subject to the procedures applicable to domestic insurers pursuant to chapter 47 except that, if the surviving entity after a merger, consolidation, conversion or mutualization is a captive insurance company, a captive insurance company is subject to this chapter. With respect to mergers, consolidations, conversions and mutualizations, the superintendent, in the superintendent’s discretion, may:
A. Waive any public hearing requirement; [PL 2009, c. 335, §12 (NEW).]
B. Permit an alien insurer as a party to a merger as long as the requirements for a merger between a captive insurance company and a foreign insurer apply. For the purposes of this paragraph, an alien insurer must be treated as a foreign insurer and the jurisdiction of the alien insurer is considered a state; or [PL 2009, c. 335, §12 (NEW).]
C. Approve the conversion of a captive insurance company organized as a stock insurer to a nonprofit corporation with one or more members or a limited liability company. [PL 2009, c. 335, §12 (NEW).]
[PL 2011, c. 90, Pt. I, §5 (AMD).]
5. Issuance of stock. If the capital stock of a captive insurance company incorporated as a stock insurer is issued at par value, stock may not be issued at less than par value.
[PL 2009, c. 335, §12 (AMD).]
6. Board of directors. If a captive insurance company incorporated in this State is formed as a corporation, then at least one of the members of the board of directors of the company incorporated in this State must be a resident of this State. If the company is formed as a reciprocal insurer, then at least one of the members of the subscribers’ advisory committee must be a resident of this State. If the company is organized as a limited liability company, then at least one member of its governing body must be a resident of this State.
[PL 2017, c. 169, Pt. G, §7 (AMD).]
7. Captive insurance company. A captive insurance company formed under this chapter, except for a pure nonprofit captive insurance company, has the privileges granted by and is subject to Title 13?C and this chapter. In the event of conflict between Title 13?C and this chapter, this chapter controls.
[RR 2001, c. 2, Pt. B, §45 (COR); RR 2001, c. 2, Pt. B, §58 (AFF).]
8. Pure nonprofit captive insurance company. A pure nonprofit captive insurance company formed under this chapter has the privileges granted by and is subject to Title 13?B and this chapter. In the event of conflict between Title 13?B and this chapter, this chapter controls.
[PL 1997, c. 435, §1 (NEW).]
9. Quorum. If formed as a corporation, the articles of incorporation or bylaws of a captive insurance company may authorize a quorum of its board of directors to consist of no fewer than 1/3 of the fixed or prescribed number of directors determined under Title 13?B or 13?C. If formed as a reciprocal insurer, the subscribers’ agreement or other organizing document may authorize a quorum of its subscribers’ advisory committee to consist of no fewer than 1/3 of the number of its members.
[PL 2009, c. 335, §12 (NEW).]
SECTION HISTORY
PL 1997, c. 435, §1 (NEW). RR 2001, c. 2, §B45 (COR). RR 2001, c. 2, §B58 (AFF). RR 2009, c. 1, §17 (COR). PL 2009, c. 335, §12 (AMD). PL 2011, c. 90, Pt. I, §§4, 5 (AMD). PL 2013, c. 588, Pt. A, §30 (AMD). PL 2017, c. 169, Pt. G, §§4-7 (AMD).