Vermont, which has been a captive domicile since 1981, previously allowed other types of captive insurers, including pure captives, association captives
and industrial Insured captives, as well as risk retention groups.
passed early legislation to allow association captives
because of the large number of such organizations located there, not many are being formed because of startup costs and requirements that all members be eligible to participate, regardless of their risk profile.
These include association captives
formed and owned by members of an industry or trade association to share the risks of the group and segregated cell captives and risk-retention groups, which allow members that engage in similar or related businesses to pool only their liability insurance.
Tennessee's original captive law allowed companies to set up pure captives, trade association captives
, industrial insured captives and risk-retention groups.
The law creates five classes of authority that include pure and association captives
, two property-casualty classes, and an unrestricted life and disability class.
Sponsored captives are identical to association captives
with one significant difference: For a fee, the owner and creator of the captive--in this case, ASAE Services, Inc.
Many companies are interested in alternative vehicles and instead opt to self-insure as part of a group by forming association captives
or risk retention groups.
We've also seen increased growth from group association captives
out of the U.
The new law also created a special purpose captive licensing category and lowered the minimum capitalization requirement for association captives
from $750,000 to $500,000.
We have also proposed lowering the minimum capital requirements for association captives
, and finally we have proposed a variety of technical amendments to update various components of our law.