Tenn. Captive Law Signed By Governor

NU Online News Service, June 14, 2:53 p.m. EDT

Tennessee Gov. Bill Haslam has signed legislation that will allow the formation of captive-insurance companies in the state.

The new legislation, passed unanimously by both the Tennessee House and Senate in May, could change risk management for corporations both within and outside of Tennessee, according to Nashville, Tenn.-based Burr & Forman LLP partner Kevin M. Doherty, who helped draft the legislation.

Doherty worked closely with Tennessee Commerce and Insurance Commissioner Julie McPeak, a former Burr & Forman attorney, and members of the Tennessee General Assembly to draft the legislation and advocate for its passage.

“This law puts Tennessee at the forefront of the captive-insurance industry and will allow companies throughout the country to bring their captive-insurance programs to Tennessee and take advantage of our cutting-edge law,” Doherty says in a statement.

The law, one of the most progressive in the country, allows for the formation of new types of captive-insurance companies in the state, Burr & Forman says. It will add incorporated-cell captives, branch captives and special-purpose financial captives in addition to the standard single-owner, association, industrial-insured and risk-retention-group captives.

In addition to standard property and casualty coverages, the law now permits the formation of captives to write workers’ compensation for entities that qualify as self-insureds, as well as employee-benefits and medical stop-loss captives.

Doherty, head of the firm’s Insurance Group, notes that this could change risk management for many companies in Tennessee and elsewhere.

“The formation of or participation in a captive can be an effective risk-management technique for virtually any company,” says Doherty.

Comments

Resource Center

View All »

Complimentary Case Study: Helping achieve your financial goals By:...

Find out how a Special Investigation Union used TLOxp to save the company money and...

Do Your Clients Hold The Right CDL License?

Learn about the various classes of CDL Licenses and the industries that are impacted by...

Integrated Content & Communications: A Key Business Issue For Insurers

Insurers are renewing their focus on top line growth, and many are learning that growth...

High Risk Insurance Coverage in the E&S Market

Experts discuss market conditions, trends and projected growth in a rapidly changing niche.

Top E-Signature Security Requirements

This white paper covers the most important security features to look for when evaluating e-signatures...

EPLI Programs Crafted Just For Your Clients

Bring us your restaurant clients, associations and other groups and we’ll help you win more...

Is It Time To Step Up And Own An Agency?

Download this eBook for insight on how to determine if owning an agency is right...

Claims - The Good The Bad And The Ugly

Fraudulent claims cost the industry and the public thousands of dollars in losses. This article...

Leveraging BI for Improved Claims Performance and Results

If claims organizations do not avail themselves of the latest business intelligence (BI) tools, they...

Top 10 Legal Requirements for E-Signatures in Insurance

Want to make sure you’ve covered all your bases when adopting e-signatures? Learn how to...

PropertyCasualty360 Daily eNews

Get P&C insurance news to stay ahead of the competition in one concise format - FREE. Sign Up Now!

Advertisement. Closing in 15 seconds.