DOL Approval Not Necessary for Medical Stop Loss in Captives

 
Captive Uses, Trends & Innovations | Employee Benefits in Captives | Debbie Liebeskind | Senior Actuarial Consultant | Towers Watson

In this video, Debbie Liebeskind of Towers Watson discusses how captive insurance companies insuring employee benefits have traditionally covered life and disability benefits. While related to employee benefits coverage, medical stop loss has typically been considered a casualty risk. However, under the Affordable Care Act, mitigants to the volatility of high-amount claims have been eliminated. Furthermore, because medical stop loss coverage is not considered an Employee Retirement Income Security Act (ERISA) transaction, captive insurance companies are not required to get permission from the Department of Labor to be able to write medical stop loss. This makes medical stop loss coverage an easy and efficient captive transaction.