| (a) Except as provided in subsection (b) of this section,
a captive insurance company is prohibited from providing insurance
coverage to a former affiliate or reinsurance to an insurer covering
the operational risks of the former affiliate after the effective
date on which the affiliation ceases, including the effective date
of the sale of the affiliate.
(b) The captive insurance company may provide insurance
coverage to the former affiliate if the captive insurance company
provides information acceptable to the commissioner that the coverage
being provided meets the requirements to be categorized as a controlled
unaffiliated business under §6.202(c) of this title (relating
to Captive Insurance Company Certificate of Authority Application
Contents and Process).
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