ACT NO. 80
Captive Insurance Companies
This act provides more flexibility in the formation and operation of sponsored captive insurance companies by permitting the companies whose risks are written to select one of three methods to fund or cover their risk exposures. When the sponsored captive law was first enacted, sponsored captives were required to have their policies written
by another insurance company. This bill provides two additional mechanisms for covering a participants exposures: procurement of reinsurance and placing sufficient assets in trust.
Effective Date: April 11, 2000