Thanks for asking!
I will outline the steps necessary for forming a Property and
Casualty insurance company in the State of Wyoming, and provide the
broad details for each step, together with online links and resources
whenever available. Bear in mind that Google Answers research offers
general information, and should not be considered a substitute for
professional advice. For a project of this scope, it is likely that
you will require the services of legal, paralegal, and/ or accounting
professionals. Now that I've given you the quick version of "the fine
print" I'll also do my best to give you an accurate do-it-yourself
checklist. If you chose to utilize professional services, those
professionals will perform some of these steps for you. I've fed some
of the longer links common to government websites to Make A Shorter
Link for formatting uniformity within this online document.
1. Form a business entity - a company or corporation
Although you are probably familiar with this part of the process, I've
listed resource links to the government departments that handle
business startup. Wyoming business entities are chartered and
regulated by the Wyoming Secretary of State.
The Secretary of State offers a publication entitled "The Choice is
Yours". The booklet is available in .pdf format (requires Adobe
Acrobat reader, download link provided) and contains information to
help you choose the type of business entity that best fits your needs.
It includes general characteristics, advantages, disadvantages and tax
implications of each entity.
Wyoming Secretary of State
Publications - The Choice is Yours - Download page
http://soswy.state.wy.us/corporat/pub.htm
The Wyoming Secretary of State Division of Corporations provides
information and online copies of the forms used in forming a
corporation, partnership or sole proprietorship. The forms themselves
are made available in .pdf format. Instructions for completion,
printing and filing are included with each form.
Wyoming Secretary of State
Corporations
http://soswy.state.wy.us/corporat/corporat.htm
The Wyoming Business Council offers information and assistance with
business permitting throughout the state. Their FAQ provides contact
information, as well as the answers to frequent questions. Interactive
assistance is also available through a convenient web form interface.
Wyoming Business Council
Business Permitting Assistance Office
http://makeashorterlink.com/?W27E32491
Interactive Business Center
http://www.wyomingbusiness.org/wbc/ibc.cfm
2. Become familiar with the insurance laws and regulations of Wyoming
In filing for licensing as an insurer, it is considered mandatory to
understand the laws and regulations which apply to insurers within the
state. The statues and regulations detail the financial reporting,
taxes and fees, procedures, trade practices, and insurance contracts
in Wyoming.
2002 Wyoming Statutes
Title 26 - Insurance Code
http://legisweb.state.wy.us/statutes/sub26.htm
Rules Database - After reading the instructions, select the Search
graphic near the bottom of the page.
Public Access to Rules and Regulations
http://soswy.state.wy.us/rules/search.htm
The search results are dynamic and cannot be directly linked. To
replicate, make the following selections. From the "Select an Agency
or Agencies" drop-down lists select one of the three Insurance related
agencies. From the "Type of Rules" drop-down list, use the CTRL key to
multiple-select Current Rules and Notices. Tick the radio button next
to "Include rules regardless of date", and click SUBMIT. Repeat this
search for each of the three Insurance related agencies. Though you
can select multiple agencies, I found errors were likely and the
search excruciatingly long when attempting to do so. Download the .pdf
documents which apply to Property and Casualty insurance.
The State Insurance Department maintains a website at:
State of Wyoming
Insurance Department
http://insurance.state.wy.us/index.htm
You'll want to download the documents that specify the forms and
procedures used for issuance of insurance contracts and policies
within the state.
"WYOMING INSURANCE DEPARTMENT
The Wyoming Insurance Department is responsible for regulating the
business of insurance in the state of Wyoming. The department licenses
and regulates insurance companies, risk retention and purchasing
groups, motor clubs, preneed funeral homes, agents, brokers,
adjusters, and consultants; approves policy filings, investigates
consumer complaints; monitors financial condition and solvency of
insurance companies and collects premium and surplus lines taxes."
Wyoming Insurance Department
Who We Are and What We Do
http://insurance.state.wy.us/whoweare.html
"To Become Licensed:
The Wyoming Department of Insurance accepts the Uniform Certificate of
Authority Application (UCAA) for life & health and property & casualty
insurance companies that want to become licensed in the State of
Wyoming. This application form can be downloaded from the NAIC’s
web-site at http://www.naic.org/ucaa."
Wyoming Insurance Department
Company Licensing Information
http://insurance.state.wy.us/compylic.html
3. Submit a Primary Application to the National Association of
Insurance Commissioners
Insurance licensing by the state of Wyoming is handled by the National
Association of Insurance Commissioners, through the Uniform
Certificate of Authority Application. As a new insurer, the Primary
Application would be used. The Primary Application consists of four
sections. You will need to complete Sections 1, 2, and 4. Full
instructions are included on the NAIC website, however, I will outline
the Sections here.
"If you are applying to admit a newly formed stand-alone or affiliate
insurance company, or to re-domesticate into a Uniform State, you will
need to file a Primary Application."
National Association of Insurance Commissioners
Uniform Certificate of Authority Application
http://www.naic.org/ucaa/main.htm
"The Primary Application to the Uniform Certificate of Authority
Application (UCAA) is designed for use in the formation of a new
insurer, or by an existing insurer that is making application to
redomesticate to another state. A Uniform State is one that is
committed to using the UCAA review process for company licensing and
admissions."
National Association of Insurance Commissioners
Primary Application
http://www.naic.org/ucaa/primary/main.htm
Primary Application Download (MS Word format)
http://www.naic.org/ucaa/primary/primary.doc
I'll include the majority of the Application procedures here, so you
can get a feel for what is required, however, it'll be much easier to
follow the actual process on the NAIC website. I've included summary
links following these details.
Section 1 - The Application Review Process
"Step One: Filing Your Application
Processing Goal: 2 Weeks
Primary Applications may be submitted anytime during the year.
Primary Applications are immediately reviewed to ensure that they are
submitted in the required format as outlined in Sections II and III.
Generally, within two weeks from the date the application is received
the applicant will be notified whether or not the application has been
accepted for filing. If the application is accepted for filing, it
will be given an "official" filing date.
The applicant will be contacted if the application is not accepted for
filing due to a deficiency in the application's format. Depending upon
the nature of the deficiency, the applicant may be given two weeks
from the date of receipt of notification from the department reviewing
the application to correct the deficiency. Applications that are
deficient and not accepted for filing will be returned to the
applicant.
Step Two: Application Review
Processing Goal: 90 Days
A Primary Application will undergo a rigorous financial and
operational review in the state to which it is submitted. While the
goal of each state is to complete this review in 90 days, this time
frame cannot be guaranteed. Due to varying levels of resources
available in each state, a substantive review of the Primary
Application may take longer than 90 days in some cases. Furthermore,
if additional information is needed to complete a substantive review
of an application, the review may also take longer to complete. Once
a request for additional information has been made, the 90-day goal is
suspended until the requested information is received. That said the
purpose of the Primary Application is to streamline application
processing and every effort will be made to process a Primary
Application as quickly as possible.
At the conclusion of the substantive review by the reviewing state,
the company will either be granted a Certificate of Authority as a
domestic company, allowed to withdraw the application, or have the
application denied.
If the application is denied, the applicant will be notified and given
a detailed explanation for the denial. After the denial, if the
applicant wishes to re-file a Primary Application, a new application
and filing fee will be required."
NAIC Primary Application
Section 1 - The Application Review Process
http://www.naic.org/ucaa/primary/section1.htm
Section 2 - Filing Requirements New Insurers
"This section provides a guide to understanding the main focus of each
document of the Primary Application. However, documents are typically
used for multiple purposes. Therefore, it is important that
applications be complete.
All documents submitted in support of the application must be current.
However, in certain instances, some states have limited latitude to
accept older documents. Please contact states individually if you have
questions about a specific document.
All forms required for the UCAA Application are located in the Forms
Section and can be downloaded for printing and submission. All Forms
are in Excel, Word or PDF format.
1. Application Form and Attachments
The application must identify all lines of insurance the applicant is
requesting authority to transact, as identified by the applicant’s
plan of operation. Only insurers using this application for a
redomestication filing need to complete the section listing the lines
of business the applicant is currently licensed to transact and is
transacting in all jurisdictions. A completed checklist (Form 1P),
original executed application form (Forms 2P and 3), authorization for
disclosure of financial records (Form 4) and power of attorney to
appoint and certify agents (Form 5) must all be submitted as Item 1 of
the application. All Forms for the Primary Application are located in
the Forms section.
2. Filing Fee
The application will need to include a filing fee for the state to
which the application is submitted. The payee name and the
instructions for submitting the filing fee are included in the
Schedule of Fees Chart referenced below. A copy of the applicant’s
check should be submitted as Item 2 of the application.
Larger of $750 or retaliatory amount
Wyoming Retaliatory Information
http://insurance.state.wy.us/company/retaliatory/taxes_fees.html
3. Minimum Capital and Surplus Requirements
The application will need to show that the applicant meets the state’s
statutory minimum capital and surplus requirements. An explanation of
how the applicant complies with the capital and surplus requirements
should be submitted as Item 3 of the application. In some states, the
minimum capital and surplus requirements are determined by the classes
of insurance that the applicant is requesting authority to transact
and the classes of insurance the applicant is authorized to transact
in all other jurisdictions. The level of surplus required will be
determined after considering the applicant’s product line, operating
record and financial condition. Compliance with the statutorily
prescribed minimum surplus requirement may not be sufficient for all
applicants.
WY W.S. 26-3-108
Linda Johnson
(307) 777-5619
LJOHNS1@state.wy.us
Wyoming Capital and Surplus Requirements 26-3-108
http://legisweb.state.wy.us/statutes/titles/title26/chapter03.htm
4. Statutory Deposit Requirements
A statutory deposit may be required by the domiciliary state. The
chart referenced below indicates state specific requirements and
identifies those states that require a Statutory Deposit. Applicants
should submit documentation as to how statutory deposit requirements
have been met or how they will be met as Item 4 of the application.
Unless otherwise indicated the Statutory Deposit is for the benefit of
all policyholders.
Wyoming Statutory Deposit Requirements
" W.S. 26-3-111. Wyoming may also accept the certificate of deposit
from another state, if held for benefit of all policyholders and if
the requirements of W.S. 26-8-103(a) are met."
http://legisweb.state.wy.us/statutes/titles/title26/chapter03.htm
5. Name Approval
Each state has different guidelines and procedures for name approval.
The chart referenced below is intended to serve as a guide for the
various name approval requirements of each Uniform State. Applicants
are strongly advised to check with the state to ensure compliance with
all applicable name approval requirements. Where applicable, submit
evidence of name approval request as Item 5 of your application.
Wyoming Name Approval Requirements.
"Wyoming does not have a formal name approval procedure, and company
names cannot be reserved. W.S. 26-3-106 sets forth the requirements
regarding business names: A company's name cannot be the same or
deceptively close to a company that is already licensed in Wyoming,
and the name cannot be misleading as to the company's business
purpose."
http://legisweb.state.wy.us/statutes/titles/title26/chapter03.htm
6. Plan of Operation
The plan of operation is made up of three components, a brief
narrative, pro-forma financial statements/projections and a completed
Questionnaire (Form 8). The narrative should include significant
information not captured as a part of the Questionnaire that the
company submits in support of the application such as the reason for
redomesticaton. Provide a company-wide three-year pro-forma balance
sheet and income statement. For the lines being requested, provide
three-year premium and loss projections by line for the state in which
lines of business have been requested. Projections must support all
aspects of the proposed plan of operation, including reinsurance
arrangements and any delegated function agreements. Include the
assumptions used to arrive at these projections. The Questionnaire,
Form 8, can be located in the Forms Section. The completed
Questionnaire and all attachments should be submitted as Item 6 of the
application.
7. Holding Company Form "B" Registration Statement
If the applicant is a member of a holding company system, the
application must include either the most recent Annual Form "B"
Registration Statement or a statement substantially similar to the
NAIC model. The filing should include all attachments, exhibits and
appendices referenced in the Form “B.” The Registration Statement must
be submitted as Item 7 of the application and must include all
attachments and any amendments up to the date the application is filed
and copies of all advisory, management and service agreements.
8. Statutory Memberships
In some states, applicants are required to join one or more rating,
guarantee or other organizations prior to transacting insurance.
Generally, the lines of insurance the applicant is authorized to
transact govern statutorily mandated memberships. Please be sure to
check with the state in which you are seeking to be licensed to
inquire about any statutory memberships that may be required before
transacting insurance. Documentation supporting membership
application(s) should be submitted, in states where required, as Item
8 of the application.
9. SEC Filings or Consolidated GAAP Financial Statement
If the applicant, its parent or its ultimate holding company, has
made a filing or registration with the Securities and Exchange
Commission (SEC) in connection with a public offering within the last
three years, or filed an 8K, 10K or 10Q within the last 12 months, the
application will need to note that the filing, including any
supplements or amendments, is available electronically from the SEC.
If the applicant, its parent or its ultimate holding company, is not
publicly traded, the application will also need to include a copy of
the applicant's most recent Consolidated GAAP financial statement. The
notice of SEC filings or copy of a Consolidated GAAP statement should
be submitted as Item 9 of your application.
10. Debt-to-Equity Ratio Statement
For applicants who are members of a holding company system,
Debt-to-equity information should be submitted as Item 10 of your
application. The application will need to include a comprehensive
debt-to-equity ratio statement, which includes the following
information.
A. Provide the consolidated outside debt to consolidated equity
ratio on a GAAP basis for the holding company. *
[See table: http://www.naic.org/ucaa/primary/section2.htm ]
B. Provide the most recent consolidated, holding company financial
statement.
C. State if the holding company, on a consolidated basis, has a
tangible net worth: a) for the past three years; b) at present and c)
provide projections with assumptions for a three year period.
D. Applicants must clearly substantiate the sources of repayment of
any debt, including, but not limited to whether the source of
repayment is independent from the future income of the insurers.
E. Calculate the debt service (as reported in D above), required of
each insurer as a percentage of the insurer's capital and surplus.
F. List the assets of the holding company, if any, that are pledged
to fund the debt service or debt repayment of an affiliate or parent
(include the assets or stock of any insurer subsidiaries).
G. List any guarantees (personal or otherwise) from the shareholders
for repayment of the debt.
* Some states may require re-statement based upon statutory equity.
11. Custody Agreements
The applicant should include a statement setting forth whether or not
any of the applicant's stocks, bonds, or other physical or book entry
securities are in the physical possession of another entity.
If any of the applicant's stocks, bonds or other securities are not in
the applicant's actual physical possession or in a safe deposit box
under the exclusive control of the applicant (except as shown in the
Schedules of Special and Other Deposits in the applicant's Annual
Statement), the application will need to include a written agreement
with each entity holding and/or administering these securities. The
written agreement should include appropriate safeguards for the
handling of the securities, in accordance with those specified in the
NAIC Financial Examiners' Handbook.
Some states have additional requirements for these custody agreements,
beyond those called for in the NAIC handbook. The statement and copies
of the custody agreements should be submitted as Item 11 of your
application.
12. Public Records Package
Most states have requirements to disclose information to the public
under a Public Records Act. To meet these public disclosure
requirements certain items must accompany the application. While these
documents may or may not be part of the substantive review, please be
sure to include the documents with the application.
(http://www.naic.org/ucaa/primary/state_charts/public_records.htm) The
chart is divided into two types of filings, financial and operational.
A company seeking to redomesticate should provide both financial and
operational documents for the state of application. An applicant
which is seeking to form a new insurer should include all documents
listed in the operational section of the chart for the state of
application. All documents required by the state of application
should be submitted as Item 12 of the application.
13. NAIC Biographical Affidavits or Business Character Reports
An NAIC Biographical Affidavit or business character report must be
submitted for all officers, directors, key managerial personnel of the
applicant and individuals with a 10 percent or more beneficial
ownership in the applicant and the applicant's ultimate controlling
parent.
The NAIC Biographical Affidavit certified by an independent third
party that has conducted a comprehensive review of the applicant's
background and has certified that the Biographical Affidavit has no
inaccurate or conflicting information and no material omissions, is
accepted. An independent third party is one that has no affiliation
with the applicant and is in the business of providing background
checks or investigations such as DAC, Equifax, Owens Online or
Proudfoot. NAIC Biographical Affidavits must be current and shall not
be signed by the affiant more than one year prior to the date the
application is filed.
If submitting the Business Character Report in lieu of a NAIC
Biographical Affidavit the independent third party shall, certify that
the Business Character Report has no inaccurate or conflicting
information and no material omissions. A Business Character Report's
date of certification shall not be more than one year prior to the
date the application is filed.
Please check state specific requirements in the chart referenced below
for those states that require additional background information, such
as fingerprints, in place of or in addition to, NAIC Biographical
Affidavits or Business Character Reports. If applying in one of those
states, necessary fingerprint cards and processing fees should be
included.
NAIC Biographical Affidavits or Business Character Reports should be
submitted as Item 13 of your application.
Wyoming Fingerprint and Biographical Affidavit information:
Wyoming Business character reports/NAIC Biographical Affidavit"
Primary Application Section 2
Filing Requirements
http://www.naic.org/ucaa/primary/section2.htm
Section 4 - How To File
"To facilitate the prompt review of the Primary Application, please
ensure that the application adheres to the formatting instructions
provided in this section. Applications that fail to meet these
formatting requirements will not be accepted for filing. Section IV
will address the following areas:
1. Communication Between Applicant and Agency
Once a Primary Application is accepted for filing the applicant will
be notified of the filing date and agency contact person. The names,
addresses, e-mail (if available) and telephone numbers of the
individual(s) assigned to the application will be provided. Prior to
receiving the name of the agency contact person, an applicant may
contact the agency personnel listed in the chart referenced below to
obtain information regarding the status of a Primary Application.
Wyoming Filing Information Contact:
[Mavis Earnshaw
Financial Specialist
(307) 777-7318]
2. Questions
Sections II and III, Filing Requirements, provide detailed guidelines
regarding both the type and format of information required for the
Primary Application. In most cases an agency contact person is
provided for each item in the Filing Requirement sections. For
additional information, or clarification, applicants may use the
contact names provided in item 1, Communication Between Applicant and
Agency.
3. Application Checklist
The application checklist (Form 1P) in the Forms Section is intended
as a guide for assembling a complete application. Complete the
checklist prior to submitting a Primary Application for review. A
completed checklist should be attached to the top of each application.
4. Application and Supporting Documents
Submit one copy of the Checklist, completed application and all
supporting documentation to the reviewing state. The States of New
York and California require 2 complete copies. Each item identified in
Sections II and III of the Filing Requirements should have a cover
sheet as specified below.
Each cover sheet should be on paper suitable for use as a cover sheet,
such as binder divider pages.
Each cover sheet needs to be tabbed on the right-hand side of the page
with a number corresponding to the document's item number in the
Primary Application checklist.
If a particular item is not included with the cover sheet, a written
explanation stating the reason the item has not been included must be
attached to the cover sheet. Set forth below are examples of why a
particular item may not be attached to the cover sheet.
"Item not applicable to this application for the following reason ...
(state reason)"
"Item has been attached separately because of size."
Helpful Hint: Many applicants find it convenient to submit the
application in binders with numerical binder divider tabs.
5. Address for Submission of Application
Insurance Department
122 West 25th Street
Herschler Building, 3-East
Cheyenne, WY 82002
6. Updates/Changes
Applicants are responsible for informing states of any significant
changes that occur or are discovered during the application review
period. Examples of significant changes include: changes in officers
and directors, material acquisition or disposal of assets, changes in
reinsurance, acquisition of the insurer, change in proposed
shareholders, regulatory actions taken against the insurer, change in
current business plan, etc.
Applicants must supply revised forms promptly if any changes occur
which materially affect the accuracy of the forms filed in support of
the application. For example, new quarterly statements must be
forwarded as soon as they become available.
7. Filing Fee
Please see Section II, item 2, the Schedule of Filing Fees to
determine the correct fee and filing instructions for the state in
which you are applying.
(http://www.naic.org/ucaa/primary/state_charts/filing_fees.htm)
8. Forms
All forms are available in the Forms Section. All forms are in Excel,
Word or Adobe PDF format and can be downloaded, printed and submitted
with a completed application. The forms MUST NOT be altered and, at
this point, cannot be submitted electronically.
9. State Specific Information
Some jurisdictions may have additional requirements that must be met
before a Certificate of Authority can be issued. Before completing a
UCAA Primary Application the applicant should review a listing of
requirements for the state to which you are applying.
Wyoming State Specific Information
http://www.naic.org/ucaa/state_pages/wyoming.htm
To summarize, the licensing application, filing information and
required forms for that application are available from:
National Association of Insurance Commissioners
Primary Application Download
http://www.naic.org/ucaa/primary/primary.doc
Section 1 - http://www.naic.org/ucaa/primary/section1.htm
Section 2 - http://www.naic.org/ucaa/primary/section2.htm
Section 4 - http://www.naic.org/ucaa/primary/section4.htm
State Charts - http://www.naic.org/ucaa/primary/state_charts.htm
Retaliatory Information - http://www.naic.org/ucaa/retaliatory.htm
Forms Section - http://www.naic.org/ucaa/forms/forms.htm
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Wishing you the best of luck in your new venture.
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