New Jersey Administrative Code
Title 11 - INSURANCE
Chapter 28 - CAPTIVE INSURANCE
Subchapter 1 - CAPTIVE INSURANCE
Section 11:28-1.2 - Definitions

The following words and terms, as used in this subchapter, shall have the following meanings, unless the context indicates otherwise.

"Alien captive insurance company" means an insurance company formed to write insurance business for its parents and affiliates and licensed pursuant to the laws of a jurisdiction other than this State which imposes statutory or regulatory standards in a form acceptable to the Commissioner on companies transacting the business of insurance in that jurisdiction.

"Association captive insurance company" means a company that insures risks of the member organizations of the association and their affiliated companies.

"Branch captive insurance company" means an alien captive insurance company licensed by the Commissioner to transact the business of insurance in this State through a business unit with a principal place of business in this State.

"Captive" or "captive insurance company" means any pure captive insurance company, association captive insurance company, sponsored captive insurance company or industrial insured captive insurance company formed or licensed pursuant to 17:47B-1 et seq. For the purposes of this subchapter, a branch captive insurance company shall be a pure captive insurance company with respect to operations in the State, unless otherwise permitted by the Commissioner.

"Commissioner" means the Commissioner of the New Jersey Department of Banking and Insurance.

"Department" means the New Jersey Department of Banking and Insurance.

"Industrial insured captive insurance company" means a company that insures risks of the industrial insureds that comprise the industrial insured group, and their affiliated companies.

"Pure captive insurance company" means a company that insures risks of its parent and affiliated companies or controlled unaffiliated businesses.

"Sponsored captive insurance company" means a captive insurance company:

1. In which the minimum capital and surplus required by applicable law is provided by one or more sponsors;

2. That is formed or licensed under 17:47B-1 et seq.;

3. That insures the risks of separate participants through the contract; and

4. That segregates each participant's liability through one or more protected cells.

"Work papers" include, but are not necessarily limited to, schedules, analyses, reconciliations, abstracts, memoranda, narratives, flow charts, copies of company records or other documents prepared or obtained by the accountant and his or her employees in the conduct of their examination of the company.