Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698746489556.pdf (Micronesia, Federated States of)
TWENTY-FIRST CONGRESS OF THE FEDERATED STATES OF MICRONESIA SECOND REGULAR SESSION, 2019 CONGRESSIONAL BILL NO.

21-69 P.C.

NO.

21-129 PUBLIC LAW NO.

21-49 AN ACT To further amend section 1007 of title 37 of the Code of the Federated States of Micronesia (Annotated), as amended by Public Law No.

18-20, to eliminate discrepancy between initial and ongoing capital and surplus requirements for captive insurance companies, and for other purposes.
BE IT ENACTED BY THE CONGRESS OF THE FEDERATED STATES OF MICRONESIA: 1 Section 1.

Section 1007 of title 37 of the Code of the 2 Federated States of Micronesia (Annotated), as amended by Public 3 Law No.

18-20, is hereby further amended to read as follows: ”Section 1007.
Minimum Capital and Surplus Requirements: (1) No captive insurance company shall be issued a license unless it maintains a minimum capital and surplus of $100,000; (2) Provided however with respect to multiple corporate captive insurance companies the core member shall maintain minimum capital and surplus of $1,000,000 and each non-core member shall maintain minimum capital and surplus of $100,000.
(3) With respect to Class 4 captive insurance company, the minimum required capital and surplus is $5,000,000.

(4) Notwithstanding subsections (1) through (3) of this section, the Commissioner may increase the minimum CBL 21-72 P.C.

NO.

21-129 PUBLIC LAW NO.

21-49 CONGRESSIONAL BILL NO.


21-69 required capital and surplus after taking into account the type, volume, and nature of insurance business transacted, and potential risk retained by the captive insurance company.

(5) Minimum required capital and surplus may be in the form of any combination of the following: (a) cash (b) letter of credit, (c) investments pursuant to section 1013 of this chapter, or (d) any other security deemed appropriate by the Commissioner.” Section 2.
This act shall become law upon approval by the 14 President of the Federated States of Micronesia or upon its 15 becoming law without such approval.

16 October 19, 2019 /s/ David W. Panuelo David W. Panuelo President Federated States of Micronesia 2 of 2 P.C.

NO.

21-129 PUBLIC LAW NO.

21-49 CONGRESSIONAL BILL NO.

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