| (a) A captive insurance company must provide financial
projections covering the next four years of operations:
(1) with its application under §6.202 of this
title (relating to Captive Insurance Company Certificate of Authority
Application Contents and Process);
(2) as required under §6.304(c) of this title
(relating to Material Change in the Plan of Operations);
(3) not later than 30 days after a request by the department;
and
(4) with its annual report every third year, except
as provided in subsection (b) of this section.
(b) The financial projections must be in the format
required for the annual report and include the projected:
(1) asset page;
(2) liability, capital, and surplus page;
(3) income statement page; and
(4) cash flow page.
(c) A captive insurance company is not required to
submit financial projections under subsection (a)(4) of this section
if:
(1) the captive insurance company provides the department
with financial projections covering the next four years of operations
during the calendar or fiscal year that will be covered by the annual
report described in subsection (a)(4) of this section; or
(2) the department waives the requirement in writing.
(d) The captive must note the reason for not including
the financial projections in its annual report as requested under
subsection (a)(4) of this section.
(e) The department will reassess the captive insurance
company's minimum capital and surplus when there is an update to the
captive insurance company's projections. The captive insurance company
must provide an actuarial opinion on the effect of the change in the
projections if requested by the department.
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