CAPI 1.2.6 Regulatory Authority may authorise entity as class 4 captive insurer

(1) The Regulatory Authority may decide that an entity that does not meet the requirements for class 1 captive insurer, class 2 captive insurer or class 3 captive insurer is a class 4 captive insurer.

Note Entity is defined in the glossary.
(2) Without limiting subrule (1), the Regulatory Authority may take into account the following matters in deciding whether an entity is a class 4 captive insurer:
(a) the business rationale for making the entity a captive insurer;
(b) the use or non-use of the entity as a risk management tool;
(c) the nature of the interests of the shareholders or members of the entity and whether they are aligned, or have some commonality with, the policyholder;
(d) any unique or expert knowledge of the shareholders or members of the entity about the risks to be insured;
(e) the appropriateness of the structure for the proposed activities or whether the business is more akin to a commercial insurer.
Derived from QFCRA RM/2011-1 (as from 1st July 2011)