The group of new licensees is made of twelve pure captives, seven Risk Retention Groups (RRGs), seven sponsored captives, four special purpose financial insurers, two industrial insured captives, and one association captive
The bill also lowers the minimum of capital and surplus requirements for an association captive
insurance company from $750,000 to $500,000.
A review of New Jersey's new captive law leaves one believing that the competition between the two domiciles is all-too-real and the Garden State's legislators intended to throw the gauntlet at the feet of New York: New Jersey provides a tax rate that is a shade below New York--0.38% for the first $ 20 million of premium and 0.28% for the next $ 20 million versus 0.40% and 0.30%, respectively; New Jersey allows association captive
plans while New York does not; New Jersey does not provide for a financial threshold for captive sponsors while New York, as noted, has a $100 million net worth/net revenue benchmark; and, perhaps most interesting, New Jersey provides for licensing of "branch offices" of other states' domestic captives, something never considered by New York.
An association captive
is an insurance company that is owned by an association or its members and created to provide insurance exclusively to the association's members.
Newly licensed as a sponsored association captive
insurance company under the District of Columbia's Captive Insurance Company Act of 2000, AIC provides captive insurance benefits to qualifying associations.
Group or association captive
- A captive owned by businesses in related fields
There are four primary choices for a large corporation: "wholly owned" (also known as "single parent"), "group or association," "rent-a-captive" or "cell company." A wholly owned captive is, as you would imagine, an insurance company owned by one company, typically the insured, while a group or association captive
is one shared by multiple businesses (either through a formal association or an informal relationship in which the risk is homogenous).
Hartford's structure for its program segment brings together group captives, agency and association captive
business and specialty business.
. This type of captive is generally used for a group of homogeneous businesses with a trade association owner.
Labrie says that in 1987, an association captive
handled product lines a risk retention group is forbidden from handling: property, workers' comp, fidelity and boiler.
An association captive
insurance company, a sponsored captive insurance company and an industrial insured group shall comply with the investment requirements contained in Title 38
There were also one industrial insured captive and one association captive