| (a) An agreement with a captive management company
described in §6.104 of this title (relating to Administrative
Services Contracts) must be in writing and include the following:
(1) a requirement that all parties to the agreement
must comply with the applicable requirements of the Insurance Code
and department rules, including holding the appropriate licenses or
certificates of authority;
(2) a requirement that the captive management company
must permit the commissioner or the captive insurance company to examine
at any time:
(A) the financial solvency of the captive management
company; and
(B) the captive management company's ability to perform
its responsibilities under the written agreement;
(3) a description of the duties or services that the
captive management company is to provide;
(4) a provision relating to continuation of services
following termination and the transfer of the books and records of
a captive insurance company from one captive management company to
another captive management company;
(5) a requirement that the books and records of the
captive insurance company:
(A) remain the property of the captive insurance company
at all times;
(B) are available to the captive insurance company
or its designee at any time while in the custody of a captive management
company; and
(C) will be timely transferred to the captive insurance
company or its designee:
(i) on request of the captive insurance company;
(ii) at the termination or cancellation of a written
agreement entered into by a captive management company; and
(iii) in compliance with all applicable statutory and
rule requirements;
(6) a requirement that the books and records must be
maintained as required in §6.306 of this title (relating to Books
and Records); and
(7) a provision that the captive management company
has no automatic right to terminate the agreement if all terms of
the agreement are being met and the captive insurance company is placed
in receivership under Insurance Code Chapter 443.
(b) Under this chapter, a written agreement includes
an agreement that is prepared, signed, or stored electronically.
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