Page 624

House Bill No. 5506

Public Act No. 22-118 624 of 739

reinsurer's reinsurance obligations to the branch captive insurance company. (B) The amounts required under subparagraph (A) of this subdivision may be held, with the prior approval of the commissioner, in the form of: (i) [a] A trust formed under a trust agreement and funded by assets acceptable to the commissioner; [,] (ii) [an] An irrevocable letter of credit issued or confirmed by a bank approved by the commissioner; [,] (iii) [with] With respect to the amount required under subparagraph (A)(i) of this subdivision only, cash on deposit with the commissioner; [,] or (iv) [any] Any combination [thereof] of the forms described in subparagraphs (B)(i) to (B)(iii), inclusive, of this subdivision. (3) The commissioner may exempt a branch captive insurance company from the provisions of subdivisions (1) and (2) of this subsection if the branch captive insurance company is a foreign captive insurance company and the commissioner, in the commissioner's discretion, determines that the branch captive insurance company is financially stable. [(b) The commissioner may adopt regulations, in accordance with chapter 54, to establish additional capital and surplus requirements based upon the type, volume and nature of insurance business transacted.] [(c)] (b) Notwithstanding any other provision of this section, the commissioner shall have the discretion to allow a captive insurance company, other than a captive insurance company organized as a risk