Association Captive Insurance Companies as Administrators for Certain Entities

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An association captive insurance company may, directly or through an entity it may create and control, enter into agreements with participating governmental entities or electric cooperatives under §29-20-401, to serve as administrator or act as the special fund or legal or administrative entity of the pooled financial and administrative resources thereunder and under this part, and may charge fees and costs for such services as administrator. The company may provide insurance or reinsurance for excess losses above the amounts that are retained by the pooled financial resources, the same as if it were created by governmental entities under §29-20-401(e), for those purposes, an electric cooperative shall be deemed to be a governmental entity. To the extent that an association captive insurance company shall be deemed to become a party to an interlocal agreement, it shall be deemed to have the status of a public agency for those purposes. The administrative activities and operations of the fund or entity, whether by, through or under the direction or supervision of the association captive insurance company or otherwise, shall be subject to §29-20-401(d), and certificates of compliance may be issued as authorized by §29-20-401(c)(2).


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