"When someone calls, we need to be available and to respond quickly. We try to turn around calls and emails within a day. We want to work with captives, not be a hindrance," said Debbie Walker, senior deputy commissioner of the Captive Insurance Companies Division of the North Carolina Department of Insurance in Raleigh, North Carolina.
That regulatory accessibility is welcomed by captive sponsors. "We have that ability to pick up the phone and have good and reasonable business discussions. These are highly accessible regulators," said Peter Brunstetter, executive vice president and chief legal officer in Winston-Salem, North Carolina, for Novant Health, a large healthcare system. Its North Carolina captive, Novant Health Casualty LLC, which is managed by Marsh Captive Solutions, covers a wide variety of risks, including medical malpractice, general liability, and medical stop loss.
Captive managers also applaud the responsiveness of state regulators. "The captive team is very well-staffed and very focused on finding solutions. There is, for example, very quick turnaround on captive applications and requests," said Martin Eveleigh, chairman of Atlas Insurance Management in Charlotte, North Carolina.
State lawmakers also have been responsive to suggestions to amend the captive statute. Legislative changes approved by lawmakers in 2014, 2015, and 2016 include exempting captives from an in-state board meeting requirement if the captive uses at least two North Carolina service providers, giving the state insurance commissioner authority to determine the amount of capital and surplus needed for protected cell captives and special-purpose captives, as well as the authority to exempt inactive captives from premium taxes and filing and reporting requirements.
Much of the state's captive growth comes from small and medium-sized businesses, whose captives have annual premium volume of $2 million or less, Ms. Walker said. Still, regulators say there also has been growth of larger captives, including risk retention groups.
While most of the state's captives fund property and casualty risks, some captives also are funding medical stop loss and employee benefits coverage, as well as commercial auto and tenant liability, Ms. Walker said.
