§431:19-106 Formation of captive insurance companies in this State. (a) A captive insurance company shall be:

(1) Incorporated pursuant to chapter 414 as a stock insurer with its capital divided into shares and held by the stockholders;

(2) Incorporated pursuant to chapter 414D as a nonprofit insurer;

(3) Incorporated pursuant to chapter 414 as a mutual insurer without capital stock, the governing body of which is elected by the member organization of its association;

(4) Organized in the State as a reciprocal insurer in accordance with sections 431:3-107, 431:3-108, 431:4-404, 431:4-405 (provided that the principal office of the attorney-in-fact for the domestic reciprocal insurer shall not be required to be maintained in this State), 431:4-406 (excluding 431:4-406(b)(3)), 431:4-407, and 431:4-415(a); or

(5) Organized pursuant to chapter 428 as a member-managed or manager-managed limited liability company.

(b) Before the required organizational documents are transmitted to the department of commerce and consumer affairs, the incorporators or organizers shall petition the commissioner to issue a certificate setting forth the commissioner's finding that the establishment and maintenance of the proposed company will promote the general good of the State. In arriving at such a finding, the commissioner shall consider:

(1) The character, reputation, financial standing, and objectives of the organizers;

(2) The character, reputation, financial responsibility, insurance experience, and business qualifications of the captive insurance company's officers and directors, or members of its governing body, and its service providers; and

(3) Other aspects as the commissioner deems advisable.

(c) The required organizational documents and fees shall be transmitted to the department of commerce and consumer affairs for filing and recordation, as may be necessary.

(d) The capital stock of a captive insurance company incorporated as a stock insurer shall be issued at not less than par value.

(e) Captive insurance companies formed under this article shall have the privileges and be subject to the general corporation law, nonprofit corporation law, or limited liability company law of this State as may be applicable, as well as this article. In the event of conflict between any of the foregoing applicable laws of this State and this article, this article shall control. [L 1987, c 347, pt of §2; am L 1992, c 108, §3; am L 1993, c 205, §36; am L 1997, c 15, §1; am L 1999, c 302, §5; am L 2003, c 209, §5; am L 2005, c 31, §4; am L 2007, c 232, §7; am L 2012, c 253, §11]