Formation Captive Application, Oversight, and Examination Process

Welcome!

Below is an overview of the three stages of Captive Insurance Company regulation: formation, oversight, and examination.

  1. Licensure Process for Captive Insurance Company - estimated 30 days
    1. Captive owner and manager meet with the Captive Insurance Section.
    2. Prepare and submit documents necessary for corporate formation. Once approved by the Assistant Commissioner, present the documents to the Secretary of State, along with appropriate fees and the Commissioner’s approval letter. Once filed with the Secretary of State, obtain a copy of the formation certification to submit with your application to the Department.
    3. Prepare and submit Captive Application. See Index for Captive Application for a complete list of application requirements. Include a $675.00 application fee.
    4. Application documents will be forwarded to the Department’s reviewing actuary.
    5. Captive Insurance Section completes its review, incorporating the reviewing actuary’s report, and recommends approval by the Commissioner.
    6. Upon issuance of the Certificate of Authority, a $440.000 issuance fee is paid.
  2. Oversight Process: As part of ongoing oversight process, the following documentation will be requested upon licensure. The expectation is that any time there is a change in the documents or a new document is available the captive insurance company will inform the Captive Insurance Section and provide an updated copy.

Required Documents Filed:

  1. Executed agreement between owner and captive manager.
  2. Executed agreement with audit firm.
  3. Executed agreement with actuarial firm.
  4. Executed agreements with any other service provider in excess of $5,000 per year.
  5. A copy of all policies issued by captive.
  6. Minutes and resolutions of all board meetings.
  7. Executed reinsurance and/or pooling agreements.
  8. Statement of investment policy.
  9. Code of ethics and certificate of acknowledgement by owners.
  10. Annual Conflict of Interest Policy Statement and Board Members’ certificate of acknowledgement.

I.  Exam Process: Captive insurance companies are placed on a 3-5 year examination cycle. The length of time is determined by the production of unqualified audited financial statements, solvency and liquidity concerns, and the quality of management and corporate governance.