The Health Care Services Group (HCSG) and its wholly owned captive insurer, HCSG Insurance Corporation, submitted a Prohibited Transaction Exemption 96-62 (EXPRO) to the US Department of Labor (DOL) providing a model for those considering funding of employee benefits in a captive. That submission has met the requirements for authorization of the DOL. The next step for the captive, HCSG Insurance Corp., is to seek the approval to write the employee benefit coverages from the Captive Insurance Division in New Jersey where it is domiciled.
“Group life and long term disability (LTD) insurance are among the most common U.S. employee benefit programs funded through captives,” according to a recent Milliman publication. Many of the risks associated with these types of benefit programs are different from captive property and liability coverages.
Legislation has been introduced in both the US House of Representatives and the US Senate to increase the premium limitation on small insurers for federal tax considerations. Representative Erik Paulsen, Minnesota (R), and Representative Ron Kind, Wisconsin (D), are cosponsoring H.R. 1788, and Senator Orrin Hatch, Utah (R), is sponsoring S.B. 905.
The District of Columbia’s Captive Insurance Company Amendment Act of 2014 became effective March 10, 2015, following the end of the 30-day congressional review period.
Ian Kilpatrick, founder of Advantage International Management, has received the Captive Insurance Companies Association (CICA) Distinguished Service Award.
The National Association of Insurance Commissioners (NAIC) Financial Regulation Standards and Accreditation (F) Committee has scheduled a conference call for 4-5 p.m. CDT Tuesday, May 26, 2015, to discuss the proposed revisions to the accreditation preamble that will include certain types of captive insurers in the scope of the NAIC Accreditation Program.
A content-rich program with an impressive array of topics and speakers is planned for the 11th Annual Canadian Captives & Corporate Insurance Strategies Summit scheduled for May 27-28 at the Sheraton Centre Toronto.
An April 11, 2015, New York Times article, “Risky Moves in the Game of Life Insurance,” continued the attack on what some, including the New York Insurance Department, have labeled shadow insurance.
Montana Governor Steve Bullock has signed two captive-related legislative bills, one of which will now allow public-sector entities to establish captive insurance companies in the state.