§ 6011. Reinsurance
(a) Any captive insurance company may provide reinsurance of policies approved by the
Commissioner comprised in section 3301 of this title, on risks of its parent, affiliated
companies, and controlled unaffiliated business ceded by any other insurer, and may
provide reinsurance of annuity contracts as defined in section 3717 of this title
that are granted by any other insurer.
(b) Any captive insurance company may take credit for the reinsurance of risks or portions
of risks ceded to reinsurers complying with the provisions of subsections 3634a(a)
through (e) of this title. Prior approval of the Commissioner shall be required for
ceding or taking credit for the reinsurance of risks or portions of risks ceded to
reinsurers not complying with subsections 3634a(a) through (e) of this title.
(c) In addition to reinsurers authorized under the provisions of section 3634a of this title, a captive insurance company may take credit for the reinsurance of risks or portions
of risks ceded to a pool, exchange, or association acting as a reinsurer that has
been authorized by the Commissioner. The Commissioner may require any other documents,
financial information, or other evidence that such a pool, exchange, or association
will be able to provide adequate security for its financial obligations. The Commissioner
may deny authorization or impose any limitations on the activities of a reinsurance
pool, exchange, or association that, in the Commissioner’s judgment, are necessary
and proper to provide adequate security for the ceding captive insurance company and
for the protection and consequent benefit of the public at large.
(d) For all purposes of this chapter, insurance by a captive insurance company of any
workers’ compensation qualified self-insured plan of its parent and affiliates shall
be deemed to be reinsurance. (Added 1981, No. 28; 1985, No. 170 (Adj. Sess.), § 1, eff. May 7, 1986; amended 1987, No. 168 (Adj. Sess.), § 3, eff. May 3, 1988; 1991, No. 249 (Adj. Sess.), § 24; 93, No. 40, §§ 7, 8, eff. June 3, 1993; 1999, No. 38, § 13, eff. May 20, 1999; 2003, No. 55, § 7; 2005, No. 122 (Adj. Sess.), § 4; 2023, No. 32, § 1, eff. July 1, 2023; 2023, No. 110 (Adj. Sess.), § 6, eff. July 1, 2024; 2025, No. 23, § 10, eff. July 1, 2025.)