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This press release is sponsored by
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Delaware Insurance Commissioner Karen Weldin Stewart Licenses World’s First Serial Captive Insurance Company
Strategic Risk Solutions (SRS) will serve as the captive manager. Derick White, a principal with SRS and president of its Vermont office said, “Despite the fact that the application for the new serial entity captive was not submitted until mid-December, Delaware’s captive team quickly assembled to immediately understand the program and diligently completed its review.”
The Delaware Department of Insurance (“DOI”) consists of five divisions:
The DOI is tasked with ensuring reliable insurance coverage at reasonable rates for Delaware consumers. The DOI is an entirely self-funded agency with a yearly contribution to the Delaware General Fund and fire police and ambulance units throughout the state that is approximately five times the amount of its annual operating budget. ### |
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Dover
– January 25, 2010 - Delaware Insurance Commissioner Karen Weldin
Stewart, CIR-ML, licensed the world’s first serial entity captive.
“This is a break-through in the captive insurance world with the
first captive of this type. I am proud that Delaware, the Global State,
is once again blazing a new trail in the world of commerce.” Delaware
is only one of seven states whose business laws allow the formation of
serial limited liability companies or statutory trusts. However, unlike
other states, Delaware has a long and well-respected history of business
law and permits the serialization of the captive entity to serve as a
customized risk management solution. Delaware’s laws allow each
series to hold different liabilities and assets that permits “ring
fencing” of the series. “A series captive entity provides
greater flexibility and advantage than other traditional structures, including
protected cell structures,” stated Commissioner Stewart. “The
licensing of this serial captive insurance company reflects my initiative
to build Delaware’s captive insurance industry. Since my staff began
informing the insurance industry of the opportunity offered by Delaware
of serial entities as an alternative risk solution less than six months
ago, my office has had numerous inquiries about how a captive can be formed
under Delaware law. What delights me is the number of inquiries arising
not only from within Delaware as well as from across the country, but
also from outside the United States. This further illustrates Delaware’s
status as a global insurance business domicile.”