CIB 1.7.2

Without limiting Rule 1.7.1, the Regulator 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; and
(f) whether the entity provides insurance to policyholders in relation to activities connected, conducted, controlled, related, managed, serviced or sold by the shareholders or members of the entity to these policyholders.