Page 609

House Bill No. 5506

Public Act No. 22-118 609 of 739

the outstanding voting: (A) Securities of a pure captive insurance company organized as a stock insurer; or (B) Membership interests of a pure captive insurance company organized as a nonprofit corporation or as a limited liability company. [(22)] (23) "Participant" means any association, corporation, limited liability company, partnership, trust or other entity, and any affiliated company or controlled unaffiliated business thereof, that is insured by a sponsored captive insurance company pursuant to a participant contract. [(23)] (24) "Participant contract" means a contract entered into by a sponsored captive insurance company and a participant by which the sponsored captive insurance company insures the risks of the participant and limits the losses of each such participant to its pro rata share of the assets of one or more protected cells identified in such participant contract. [(24)] (25) "Protected cell" means a separate account established by a sponsored captive insurance company, in which assets are maintained for one or more participants in accordance with the terms of one or more participant contracts to fund the liability of the sponsored captive insurance company assumed on behalf of such participants as set forth in such participant contracts. [(25)] (26) "Pure captive insurance company" means any company that insures risks of its parent and affiliated companies or controlled unaffiliated business. [(26)] (27) "Reinsurance contract" means a contract entered into by a special purpose financial captive insurance company and a ceding insurer by which the special purpose financial captive insurance