RS 22:550.29

§550.29. Branch captive insurance companies A. As used in this Section, unless the context requires otherwise, the following definitions apply: (1) "Alien captive insurance company" means any insurance company formed to write insurance business for its parents and affiliates and licensed pursuant to the laws of an alien jurisdiction which imposes statutory or regulatory standards in a form acceptable to the commissioner on companies transacting the business of insurance in such jurisdiction. (2) "Branch business" means any insurance business transacted by a branch captive insurance company in this state. (3) "Branch captive insurance company" means any alien captive insurance company that has obtained a certificate of authority from the commissioner to transact the business of insurance in this state through a business unit with a principal place of business in this state. (4) "Branch operations" mean any business operations of a branch captive insurance company in this state. B. In the case of a branch captive insurance company, as security for the payment of liabilities attributable to the branch operations, the commissioner shall require that either a trust fund funded by assets acceptable to the commissioner or an irrevocable letter of credit be established and maintained in the United States for the benefit of United States policyholders and United States ceding insurers under insurance policies issued or reinsurance contracts issued or assumed by the branch captive insurance company through its branch operations. The amount of such security shall be no less than the amount set forth in R.S. 22:550.10 and the reserves on such insurance policies or reinsurance contracts, including reserves for losses, allocated loss adjustment expenses, incurred but not reported losses, and unearned premiums with regard to business written through the branch operations; however, the commissioner may permit a branch captive insurance company that is required to post security for loss reserves on branch business by its reinsurer to reduce the funds in the trust account or the amount payable under the irrevocable letter of credit described in Subsection E of this Section by the same amount if the security remains posted with the reinsurer. If the form of security selected is a letter of credit, the letter of credit shall be established, issued, or confirmed by a bank chartered in this state or a member bank of the Federal Reserve System. C. A branch captive insurance company shall not be issued a certificate of authority unless it possesses and thereafter maintains, as security for the payment of liabilities attributable to the branch operations, both of the following: (1) An amount equal to the amount set forth in R.S. 22:550.10 as the minimum capital requirement for a pure captive insurance company. (2) Reserves on such insurance policies or such reinsurance contracts as may be issued or assumed by the branch captive insurance company through its branch operations, including reserves for losses, allocated loss adjustment expenses, incurred but not reported losses, and unearned premiums with regard to business written through the branch operations; however, the commissioner may permit a branch captive insurance company to credit against any such reserve requirement any security for loss reserves that the branch captive insurance company may post with a ceding insurer or that may be posted by a reinsurer with the branch captive insurance company, in either case as long as such security remains posted. D. A branch captive insurance company is considered a pure captive insurance company with respect to operations in this state. E. Subject to the prior approval of the commissioner, the amounts required in Subsection B of this Section may be held in the form of any of the following: (1) A trust formed under a trust agreement and funded by assets acceptable to the commissioner. (2) An irrevocable letter of credit issued or confirmed by a bank in this state and approved by the commissioner. (3) With respect to the amounts required in Subsection B of this Section only, cash on deposit with the commissioner. (4) Any combination of the funds prescribed in this Subsection. F. Prior to March first of each year, or by March fifteenth after its fiscal year end with the approval of the commissioner, a branch captive insurance company shall file with the commissioner a copy of all reports and statements required to be filed under the laws of the jurisdiction in which the alien captive insurance company is formed, verified by oath of two of its executive officers. If the commissioner is satisfied that the annual report filed by the alien captive insurance company in its domiciliary jurisdiction provides adequate information concerning the financial condition of the alien captive insurance company, the commissioner may waive the requirement for completion of the captive annual statement for business written in the alien jurisdiction. G.(1) The examination of a branch captive insurance company pursuant to R.S. 22:550.22 shall be of branch business and branch operations only, as long as the branch captive insurance company provides annually to the commissioner a certificate of compliance, or its equivalent, issued by or filed with the licensing authority of the jurisdiction in which the branch captive insurance company is formed, and demonstrates to the commissioner's satisfaction that it is operating in sound financial condition in accordance with all applicable laws and regulations of such jurisdiction. (2) As a condition of licensure, the alien captive insurance company shall grant authority to the commissioner for examination of the affairs of the alien captive insurance company in the jurisdiction in which the alien captive insurance company is formed. H. In the case of a branch captive insurance company, the tax provided for in R.S. 22:550.23 applies only to the branch business of the company. I. All documents, materials, or other information, including confidential and privileged documents, examination reports, preliminary examination reports or results, working papers, recorded information, and copies thereof that are produced or obtained by, or disclosed to the commissioner or any other person in the course of an examination pursuant to this Subpart, are confidential and privileged in accordance with the Louisiana Public Records Law, R.S. 44:1 et seq., examinations pursuant to Chapter 8 of this Title, R.S. 22:1981 et seq., and confidentiality provisions in this Title. J. In furtherance of the commissioner's duties, the commissioner may share and receive documents, materials, or other information pursuant to Louisiana Public Records Law, R.S. 44:1 et seq., examinations pursuant to Chapter 8 of this Title, R.S. 22:1981 et seq., and confidentiality provisions in this Title. Acts 2025, No. 313, §2.