Page 615

House Bill No. 5506

Public Act No. 22-118 615 of 739

(C) The overall soundness of the company's plan of operation; (D) The adequacy of the loss prevention programs of the company's insureds; and (E) Such other factors deemed relevant by the commissioner in ascertaining whether the proposed captive insurance company will be able to meet its policy obligations. (3) Each applicant sponsored captive insurance company shall also file with the commissioner: (A) Materials demonstrating how the applicant will account for the loss and expense experience of each protected cell at a level of detail deemed sufficient by the commissioner, and how [it] such applicant will report such experience to the commissioner; (B) A statement acknowledging that all financial records of the sponsored captive insurance company, including records pertaining to any protected cells, shall be made available for examination or inspection or by the commissioner or the commissioner's designee; (C) All contracts or sample contracts between the sponsored captive insurance company and any participants; and (D) Evidence that expenses shall be allocated to each protected cell in a fair and equitable manner. (4) Each applicant special purpose financial captive insurance company shall also: (A) Include with its plan of operation: (i) A complete description of all significant transactions, including reinsurance, reinsurance security arrangements, securitizations, related transactions or arrangements, and to the extent not included in the