§ 31A-37-601. Incorporation of a captive reinsurance company.

(1) A captive reinsurance company shall be incorporated as a stock insurer with its capital:

(a) divided into shares; and

(b) held by the captive reinsurance company's shareholders.

(2)

(a) A captive reinsurance company may not have fewer than three incorporators.

(b) At least two of the incorporators of a captive reinsurance company shall be residents of this state.

(3)

(a) Before the articles of incorporation are filed with the Division of Corporations and Commercial Code, the incorporators shall obtain from the commissioner a certificate of finding that the establishment and maintenance of the proposed corporation promotes the general good of this state.

(b) In considering a request for a certificate under Subsection (3)(a), the commissioner shall consider:

(i) the character, reputation, financial standing, and purposes of the incorporators;

(ii) the character, reputation, financial responsibility, insurance experience, and business qualifications of the officers and directors; and

(iii) other factors the commissioner considers advisable.

(4) The capital stock of a captive reinsurance company shall be issued at par value or greater.

(5) At least one of the members of the board of directors of a captive reinsurance company incorporated in this state shall be a resident of this state.

Amended by Chapter 297, 2011 General Session