Reinsurance

(a)Any captive insurance company may provide reinsurance, as defined and authorized in Article 8 of Chapter 18 of this Title, on risks ceded by any other insurer.

(b)Any captive insurance company may take credit for reserves on risks ceded to a reinsurer; provided, however, that no captive insurance COL120106 CH. 23 CAPTIVE INSURANCE COMPANIES company shall reinsure a risk or part thereof with reinsurers not complying with the provisions of '18802 of this Title.

(c)A captive insurance company may take credit for reserves on risks or portions of risks ceded to a pool, exchange or association acting as a reinsurer which has been authorized by the Commissioner. The Commissioner may require any other documents, financial information or other evidence that such a pool, exchange or association will be able to provide adequate security for its financial obligations. The Commissioner may deny authorization or impose any limitations on the activities of a reinsurance pool, exchange or association that, in his judgement, are necessary and proper to provide adequate security for the ceding captive insurance company and for the protection and consequent benefit of the public at large.

(d)For all purposes of this Chapter, insurance by a captive insurance company of any workers’ compensation qualified self-insured plan of its parent and affiliates shall be deemed to be reinsurance.