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.
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.
Among the programs with much potential to help members is the new ASAE Insurance Company (AIC), a sponsored
association captive insurance company.
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
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.
An
association captive is usually formed to stabilize insurance costs for its members.
