RS 22:550.14

382 words·~2 min read·/la/title-22/22-2085

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RS 22:550.14

§550.14. Formation and meetings of board of directors; additional requirements to transact insurance

A. The board of directors of a captive insurance company shall meet in accordance with the following standards:

(1)The captive insurance company shall maintain its books and records in accordance with R.S. 22:68.

(2)Prior to transacting insurance in this state, a captive insurance company shall do all of the following:

(a)Make adequate arrangements with a bank located in this state that is authorized pursuant to state or federal law to transfer money.

(b)Employ or enter into a contract with a natural person or business organization to manage the affairs of the captive insurance company that meets the standards of competence and experience satisfactory to the commissioner.

(c)Employ or enter into a contract with a qualified and experienced certified public accountant that is approved by the commissioner or a firm of certified public accountants that is nationally recognized.

(d)Employ or enter into a contract with qualified, experienced actuaries who are approved by the commissioner to perform reviews and evaluations of the operations of the captive insurance company.

B. A captive insurance company shall not engage in any insurance business in this state unless it complies with all of the following:

(1)It first obtains from the commissioner a certificate of authority authorizing it to do business in this state.

(2)Its board of directors, committee of managers, or, in the case of a reciprocal insurer, its subscribers' advisory committee holds at least one meeting each year in this state, except for an association captive insurance company, whose board of directors shall meet at least quarterly each year.

(3)It maintains its principal place of business in this state.

(4)It appoints a registered agent to accept service of process and to otherwise act on its behalf in this state, provided that whenever the registered agent cannot with reasonable diligence be found at the registered office of the captive insurance company, the commissioner shall be an agent of the captive insurance company upon whom any process, notice, or demand may be delivered as authorized service of process.

Acts 2008, No. 403, §1, eff. Jan. 1, 2009; Redesignated by Acts 2009, No. 503, §3; Acts 2022, No. 26, §1; Acts 2025, No. 313, §2.