Incorporation of a captive insurer

A. A captive insurance company may be incorporated as a stock corporation or a nonstock corporation pursuant to this Title, or may be formed as a limited liability company, partnership, limited partnership, statutory trust, or any lawful form of entity approved by the commissioner. B. A captive insurance company shall prepare articles of incorporation to be approved and recorded in the same manner as provided in Subpart A of this Part, R.S. 22:61 et seq. In determining whether to grant approval, the commissioner shall consider all of the following: (1) The character, reputation, financial standing, and purposes of the incorporators or organizers. (2) The character, reputation, financial responsibility, experience relating to insurance, and business qualifications of the officers and directors. (3) The competence of any person who, pursuant to a contract with the captive insurance company, will manage the affairs of the company. (4) The competence, reputation, and experience of the company's legal counsel relating to the regulation of insurance. (5) The company's business plan. (6) Such other aspects as the commissioner deems advisable. C. The articles of incorporation or bylaws of a captive insurance company shall require that a quorum of the board of directors consists of not less than one-half of the number of directors prescribed by the articles of incorporation or bylaws. D. The capital stock of a captive insurance company shall be issued at not less than par value.