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4th of February 2012

New Jersey chases captive status

Gavin Bradshaw 10/05/2010

Commissioner Tom Considine
Picture: New Jersey Commissioner Tom Considine


New Jersey’s banking and insurance commissioner has given his support to two bills that will help to create a captive insurance industry in the state.

 
Commissioner Tom Considine said the identical Senate and Assembly bills would create employment opportunities by attracting allow captive insurers, reinsurers and surplus lines firms to do business in New Jersey.
 
"These two bills represent a smart, bi-partisan effort that would make some common sense changes to regulation and allow captive insurers and carriers of reinsurance and surplus lines to operate more expansively in New Jersey," said Considine in a statement to local press.
 
The Assembly Financial Institutions and Insurance Committee approved the Assembly bill last week and it will now move the full Assembly for consideration.
 
Senate Bill No. 168, sponsored by Senator Nia H. Gill, was pre-filed for introduction in the 2010 legislative session and includes provisions for an act to regulate wholly owned insurance subsidiaries, supplementing Title 17 of the Revised Statutes.
 
Assembly Bill No. 2360 (AB 2360), sponsored by Assembly members Gary Schaer and Denise Coyle, permits captive insurance companies to be licensed by the Department of Banking and Insurance to do business in the State in any of the lines of insurance in subtitle 3 of Title 17 of the Revised Statutes or Title 17B of the New Jersey Statutes.
 
AB 2360 is intended to regulate pure, association, sponsored and industrial insured captive insurance companies. In addition, the bill creates a ‘Captive Insurance Regulation and Supervision Fund’ to provide the financial means for the commissioner to administer the bill's requirements.
 
The bill also included procedures for various types of captives to merge with other entities and procedures that a sponsored captive insurance company must follow with respect to protected cell companies.

Tags: New Jersey, New Jersey Captive Insurance Association

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