AI-assisted research summary: Certain captive insurance companies may maintain investments under an approved strategic investment policy, but they must keep specified reserve coverage and records.
(a) Except for risk retention captive insurance companies, captive insurance companies licensed under this article shall be allowed to maintain investments in accordance with a strategic investment policy adopted and monitored by the captive insurance company's governing body, and approved by the commissioner; provided that in addition to the minimum capital and surplus requirements prescribed in section 431:19-104(b), each captive insurance company with an approved strategic investment policy shall maintain investments in one or more of the following forms, which aggregate not less than one hundred per cent of reserves as required by this chapter or the commissioner: (1) Cash; (2) Irrevocable letter of credit issued by a bank chartered by this State or a member bank of the Federal Reserve System; (3) Investments in accordance with a strategic investment policy adopted and monitored by the captive insurance company's governing body, and approved by the commissioner; (4) Premiums in the course of collection; or (5) Other forms approved by the commissioner. (b) Each captive insurance company that does not maintain a strategic investment policy as described in subsection (a) and risk retention captive insurance companies shall be subject to the restrictions on allowable investments provided under sections 431:6-101 to 431:6-501; provided that the commissioner may approve other assets, investments, and investment provisions as the commissioner deems appropriate. (c) The commissioner may require a captive insurance company to file a complete disclosure of the identity, background, and experience of the key individuals or staff that are involved with its investment activities and administration, if deemed necessary. (d) Each captive insurance company shall maintain in its principal office in this State a written record documenting its investment transactions, as well as documents evidencing the authorization or approval of the investments by the captive insurance company's governing body or its designated representative. (e) The commissioner may prohibit or limit any investments or investible assets if the captive insurance company is not in compliance with this article or applicable rules. [L 1987, c 347, pt of §2; am L 1988, c 187, §11; am L 2003, c 208, §1; am L 2007, c 232, §9; am L 2012, c 253, §16]