§ 6001. Definitions
As used in this chapter, unless the context requires otherwise:
(1) “Affiliated company” means any company in the same corporate system as a parent, an
industrial insured, or a member organization by virtue of common ownership, control,
operation, or management.
(2) “Agency captive insurance company” means a captive insurance company that is owned
or directly or indirectly controlled by one or more insurance agencies or brokerages
licensed under the laws of any state and that only insures risks of policies that
are placed by or through such agency or agencies, or brokerage or brokerages, as applicable.
(3) “Association” means any legal association of individuals, corporations, limited liability
companies, partnerships, associations, or other entities, the member organizations
of which or which does itself, whether or not in conjunction with some or all of the
member organizations:
(A) own, control, or hold with power to vote all of the outstanding voting securities
of an association captive insurance company incorporated as a stock insurer; or
(B) have complete voting control over an association captive insurance company incorporated
as a mutual insurer; or
(C) constitute all of the subscribers of an association captive insurance company formed
as a reciprocal insurer; or
(D) have complete voting control over an association captive insurance company formed
as a limited liability company.
(4) “Association captive insurance company” means any company that insures risks of the
member organizations of the association and that also may insure the risks of affiliated
companies of the member organizations and the risks of the association itself.
(5) “Captive insurance company” means any pure captive insurance company, association
captive insurance company, sponsored captive insurance company, industrial insured
captive insurance company, agency captive insurance company, risk retention group,
affiliated reinsurance company, or special purpose financial insurance company formed
or licensed under the provisions of this chapter. For purposes of this chapter, a
branch captive insurance company shall be a pure captive insurance company with respect
to operations in this State, unless otherwise permitted by the Commissioner.
(6) “Commissioner” means the Commissioner of Financial Regulation.
(7) “Controlled unaffiliated business” means any person:
(A) that is not in the corporate system of a parent and its affiliated companies in the
case of a pure captive insurance company, or that is not in the corporate system of
an industrial insured and its affiliated companies in the case of an industrial insured
captive insurance company;
(B) that has an existing contractual relationship with a parent or one of its affiliated
companies in the case of a pure captive insurance company, or with an industrial insured
or one of its affiliated companies in the case of an industrial insured captive insurance
company; and
(C) whose risks are managed by a pure captive insurance company or an industrial insured
captive insurance company, as applicable, in accordance with section 6019 of this title.
(8) “Excess workers’ compensation insurance” means, in the case of an employer that has
insured or self-insured its workers’ compensation risks in accordance with applicable
State or federal law, insurance in excess of a specified per-incident or aggregate
limit established by the Commissioner.
(9) “Industrial insured” means an insured:
(A) who procures the insurance of any risk or risks by use of the services of a full-time
employee acting as an insurance manager or buyer;
(B) whose aggregate annual premiums for insurance on all risks total at least $25,000.00;
and
(C) who has at least 25 full-time employees.
(10) “Industrial insured captive insurance company” means any company that insures risks
of the industrial insureds that comprise the industrial insured group, and that may
insure the risks of the affiliated companies of the industrial insureds and the risks
of the controlled unaffiliated business of an industrial insured or its affiliated
companies.
(11) “Industrial insured group” means any group of industrial insureds that collectively:
(A) own, control, or hold with power to vote all of the outstanding voting securities
of an industrial insured captive insurance company incorporated as a stock insurer;
(B) have complete voting control over an industrial insured captive insurance company
incorporated as a mutual insurer; or
(C) constitute all of the subscribers of an industrial insured captive insurance company
formed as a reciprocal insurer; or
(D) have complete voting control over an industrial insured captive insurance company
formed as a limited liability company.
(12) “Member organization” means any individual, corporation, limited liability company,
partnership, association, or other entity that belongs to an association.
(13) “Mutual corporation” means a corporation organized without stockholders and includes
a nonprofit corporation with members.
(14) “Parent” means a corporation, limited liability company, partnership, other entity,
or individual, that directly or indirectly owns, controls, or holds with power to
vote more than 50 percent of the outstanding voting:
(A) securities of a pure captive insurance company organized as a stock corporation; or
(B) membership interests of a pure captive insurance company organized as a nonprofit
corporation; or
(C) membership interests of a pure captive insurance company organized as a limited liability
company.
(15) “Pure captive insurance company” means any company that insures risks of its parent
and affiliated companies or controlled unaffiliated business.
(16) “Risk retention group” means a captive insurance company organized under the laws
of this State pursuant to the Liability Risk Retention Act of 1986, 15 U.S.C. § 3901 et seq., as amended, as a stock or mutual corporation, a reciprocal or other limited
liability entity. (Added 1981, No. 28; amended 1981, No. 145 (Adj. Sess.); 1985, No. 170 (Adj. Sess.), § 3, eff. May 7, 1986; 1987, No. 168 (Adj. Sess.), § 1, eff. May 3, 1988; 1989, No. 225 (Adj. Sess.), § 25; 1991, No. 101, § 18; 1993, No. 40, § 1, eff. June 3, 1993; 1995, No. 180 (Adj. Sess.), § 38; 1997, No. 49, §§ 7, 8, eff. June 26, 1997; 1999, No. 38, § 4, eff. May 20, 1999; 2001, No. 71, § 11, eff. June 16, 2001; 2003, No. 55, § 7; 2005, No. 122 (Adj. Sess.), § 3; 2007, No. 49, §§ 8, 14; 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012; 2017, No. 12, § 3, eff. May 1, 2017; 2017, No. 134 (Adj. Sess.), § 9.)