TITLE 4: ECONOMIC RESOURCES
DIVISION 7: INSURANCE
§ 7902.
Licensing Authority.
(a) Any captive insurance company, when permitted by its articles of association, or charter, may apply to the Commissioner for a license to do any and all insurance comprised in Title 4, Division 7, of the Commonwealth Code; provide, however, that: (1) no pure captive insurance company may insure any risks other than those of its parent and affiliated entities; (2) no group captive insurance company may insure any risks other than those of the member organization of its group, and their affiliated entities; (3) no industrial-insured captive insurance company may insure any risks other than those of the industrial insured that comprise the industrial insured group, and their affiliated entities, or controlled unaffiliated businesses; (4) no captive insurance company, except a duly registered and licensed rent-a-captive or protected cell facility, may accept or cede reinsurance except as provided in § 7811 of this Chapter; and (5) any captive insurance company may provide excess workers compensation insurance to its parent and affiliated companies unless prohibited by the laws of the state having jurisdiction over the transaction. Any captive insurance company may reinsure workers compensation of a qualified self-insured plan of its parent and affiliated entities. No captive insurance company any captive insurance company may provide excess workers compensation insurance to its parent and affiliated companies unless prohibited by the laws of the state having jurisdiction over the transaction. Any captive insurance company may reinsure workers compensation of a qualified self-insured plan of its parent and affiliated entities. (b) No captive insurance company shall do any insurance business on CNMI unless: (1) it first obtains from the Commissioner a license authorizing it to do business in the CNMI; (2) it maintains its principal place of business in the CNMI; (3) it appoints a resident registered agent to accept the service of process and to otherwise act on its behalf on CNMI. Whenever such registered agent cannot with reasonable diligence be found at the registered office of the captive insurance company, the Director shall be an agent of such captive insurance company upon whom any process, notice or demand may be served; and (4) it is incorporated in CNMI, except that a non-domestic insurance company that has operated as an insurance company on CNMI pursuant to a CNMI Certificate of Authority during the five (5) years immediately preceding enactment of this Chapter shall be issued a license under this Chapter; provided that it maintains a place of business on CNMI and otherwise qualifies for a license under this Chapter, except it shall not be required to comply with subsection 7802(b)(2) and (b)(3) of this Section and section 7806 of this Chapter. (c)
TITLE 4: ECONOMIC RESOURCES
DIVISION 7: INSURANCE (1) Before receiving a license, a captive insurance company shall file with the Commissioner a certified copy of its Charter and By-Laws, a statement under oath of its President and Secretary showing its financial condition, and any other statements or documents required by the Commissioner. (2) In addition to the information required by Subdivision (1) of this Subsection (c), each applicant captive insurance company shall file with the Commissioner evidence of the following: (i) the amount of liquidity of its assets relative to the risks to be assumed; (ii) the adequacy of the expertise, experience, and character of the person or persons who will manage it; (iii) a description of the coverages, deductibles, coverage limits, and rates, together with such additional information as the Commissioner may reasonably require. In the event of any subsequent material change in any item in such description, the captive insurance company shall submit to the Commissioner for approval an appropriate revision and shall not offer any additional kinds of insurance until a revision of such description is approved by the Commissioner. The captive insurance company shall inform the Commissioner of any material changes in rates within 30 days of the adoption of such change; (iv) the overall soundness of its plan of operation; (v) the adequacy of the loss prevention programs of its parent, group member organizations, or industrial insureds as applicable; and (vi) such other factors deemed relevant by the Commissioner in ascertaining whether the proposed captive insurance company will be able to meet its policy obligations. (d) Each captive insurance company shall pay the Commissioner a non-refundable fee of Five Hundred Dollars (US$500.00) and each special purpose financial insurance company shall pay to the Commissioner a nonrefundable fee of Two Thousand Five Hundred Dollars ($2,500.00) for examining, investigating, and processing its application for the license and for issuing of the same and the Commissioner is authorized to retain legal, financial and examination services from outside the Department, the reasonable cost of which may be charged against the applicant. In addition, each captive insurance company shall pay a license renewal fee for each year thereafter of Five Hundred Dollars (US$500.00), and each special purpose financial insurance company shall pay to the Commissioner a nonrefundable fee of Two Thousand Five Hundred Dollars (US$2,500.00). (e) Any insurance company already chartered and doing business in CNMI that is a captive insurance company in compliance with the provisions of this Chapter shall automatically qualify for licensure. (f) If the Commissioner is satisfied that the documents and statements that such captive insurance company has filed, comply with the provisions of this Chapter, the Commissioner may grant a license authorizing it to do
TITLE 4: ECONOMIC RESOURCES
DIVISION 7: INSURANCE insurance business in the CNMI until January 1 thereafter, which license may be renewed. Source: PL 24-03, § 2 (June 12, 2025), modified. Commission Comment: In codifying PL 24-03, the Commission decapitalized the word “It” in subsection (b)(1)(2) and (3) in accordance with 1 CMC § 3806(f) and changed “ii” to “iii” in subsection (c)(2) in accordance with 1 CMC § 3806(a).