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Gathering Requirements

The requirements for your application will vary based on the type and a few other properties of the intended captive. To receive a listing of all of the requirements specific to your application before getting started, answer the questions below and then select "View Requirements".
Association captive insurance company
(N.C.G.S. §58-10-340(5)) Any company that insures risks of the member organizations of an association, and that also may insure the risks of affiliated companies of the member organizations and the risks of the association itself.

Branch captive insurance company
(N.C.G.S. §58-10-340(7)) Any alien captive insurance company licensed by the Commissioner to transact the business of insurance in this State through a business unit with a principal place of business in this State.

Industrial insured captive insurance company
(N.C.G.S. §58-10-340(20)) Any company that insures risks of the industrial insureds that comprise the industrial insured group and that may insure the risks of the affiliated companies of the industrial insureds and the risks of the controlled unaffiliated business of an industrial insured or its affiliated companies.

Protected cell captive insurance company
(N.C.G.S. §58-10-340(34)) Any captive insurance company meeting all of the following:
  1. The minimum capital and surplus required by this Part (Part 9 of Article 10 of Chapter 58 of the North Carolina General Statutes) are provided by one or more sponsors.
  2. The company is formed or licensed under this Part (Part 9 of Article 10 of Chapter 58 of the North Carolina General Statutes).
  3. The company insures the risks of separate participants through participant contracts.
  4. The company funds its liability to each participant through one or more cells and segregates the assets of each cell from the assets of other cells and from the assets of the cell captive insurance company's general account.

Pure captive insurance company (N.C.G.S. §58-10-340(36)) Pure captive insurance company. Any company that insures risks of its parent or affiliated companies.

RRG (Risk Retention Group) (N.C.G.S. §58-10-340(37)) A captive insurance company organized under the laws of this State pursuant to the Liability Risk Retention Act of 1986, 15 U.S.C. § 3901, et seq., as amended, as a stock or mutual corporation or as a reciprocal or other limited liability entity.

Special Purpose Captive Insurance Company(N.C.G.S. §58-10-340(38a)) A captive insurance company that is formed or licensed under this Part (Part 9 of Article 10 of Chapter 58 of the North Carolina General Statutes) that does not meet the definition of any other type of captive insurance company defined in this section (N.C.G.S. §58-10-340) and is designated as a special purpose captive insurance company by the Commissioner.

SPFC (Special Purpose Financial Captive)(N.C.G.S. §58-10-340(39)) A captive insurance company that has received a certificate of authority from the Commissioner for the limited purposes provided for in this Part (Part 9 of Article 10 of Chapter 58 of the North Carolina General Statutes).
Will Cells be used?
Will this be a redomestication of an existing captive?   
Does the applicant have a current plan of operation?   
   Will an Irrevocable Letter of Credit be used for capitalization/funding?    G.S. §58-10-345(c)(6) The North Carolina Captive Insurance Act permits some captives to use a letter of credit (LOC) for capitalization. If the applicant intends to use an LOC for capitalizing or funding the captive, the applicant must provide a draft copy of the irrevocable LOC with the application.

Banks appearing on the NAIC¿s list of approved banks in the Purposes and Procedures Manual of the NAIC Securities Valuation Office will be deemed to be approved by the Commissioner in order to meet the requirement of N.C.G.S. §58-10-345(c).

The Letter of Credit must contain, at a minimum, the following:

  • Statement that it is clean, irrevocable and unconditional
  • Issue date and an expiration date
  • Stipulation that the beneficiary need only draw a sight draft under the LOC and present it to obtain funds and that no other document need be presented
  • Statement to the to the effect that the obligation of the qualified United States financial institution under the LOC is in no way contingent upon reimbursement with respect thereto
  • Contain an ¿evergreen clause¿ which prevents the expiration of the letter of credit without due notice from the issuer