Requirements for material service provider contract.

1. A material service provider contract between a captive insurer and a service provider: (a) Must be for a period of not more than 5 years; (b) Requires the approval of the majority of the captive insurer’s directors or subscribers’ advisory committee members for its initial term and for all renewals; (c) Must be filed with the Division within 30 days after the effective date of the contract; and (d) If subsequently amended, must be refiled with the Division within 60 days after the effective date of the amended contract. 2. As used in this section: (a) “Material service provider contract” means any contract between a captive insurer and a service provider under the terms of which the amount to be paid to the service provider by the captive insurer is greater than $15,000 during any one 12-month period. (b) “Service provider” means a captive manager, auditor, accountant, actuary, investment adviser, attorney, managing general underwriter, managing general agent, attorney-in-fact or any other party responsible for underwriting, the determination of rates, the collection of premiums, adjusting and settling claims or the preparation of financial statements.