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Select your team of professional service providers
Comerica Bank's Captive Insurance Group can be an important part of your team. To complete your team, you can also take advantage of Comerica's relationships with the world's leading insurance, captive management, consulting, auditing and legal firms to simplify this important first step.
A feasibility study will enable you to determine if establishing a captive is right for your company. At Comerica, we can gather our team of leading professionals to complete the feasibility study and design a captive insurance program specific to your company's needs. The calculations will include the type and amount of start up capital, the expected level of losses, the expected level of expenses including reinsurance costs, and investment income.
The Pre-Incorporation Form should include details of the insurance program. These documents are submitted to your captive's attorney along with a copy of the parent company's annual report and SEC (10k) filing. For individuals or private parent companies, personal declarations and financial statements are required.
The attorney prepares an Application for Consent to be Registered and a Memorandum of Association of Company Limited by Shares. The Memorandum is the captive's charter and is subscribed by three persons resident in the domicile, who act as nominees of the captive. The attorney should also place an ad in the domicile's newspaper indicating the intention to incorporate as an exempt company, the name of the captive, and its objectives. On the day the announcement ad is published the attorney submits the Application and Memorandum to the Ministry of Finance. The attorney also submits the Pre-incorporation information form and a copy of the Application and Memorandum to the Registrar of Companies for review by the Insurance Administrations Committee.
The Monetary Authority sends the attorney its Consent for the captive to be registered as an exempt company and the approved Memorandum. The attorney then submits the approved Memorandum to the Registrar of Companies. The Registrar issues a form certifying the Deposit of Memorandum of Application and Consent Granted by the Minister along with a Certificate of Incorporation.
The first meeting of the captive's provisional directors can be held the day the approved memorandum is filed with the Registrar. At the statutory meeting of shareholders, the board of directors is elected and the first meeting of the board of directors can be held.
On payment of the capital of the captive, two of its directors and its principal representative sign the Insurance Application. The attorney submits the Application to the Registrar of Companies.
