The Prudential New Jersey Captive Insurance Co. (NJCAP) has beenapproved as the first captive insurer to be licensed in the state,according to the New Jersey Department of Banking andInsurance.

The department issued a certificate of authority to NJCAP,effective July 1, to form a pure captive.

Gov. Chris Christie in February signed legislation allowingcaptives to be formed in New Jersey.

“It is fitting that Prudential, a Newark-based domestic insurer,charters the first captive insurer in New Jersey,” says New JerseyInsurance Commissioner Tom Considine in a statement.

Prudential established NJCAP to manage risk in a portion of itslife insurance and annuity policies. NJCAP will have a NewJersey-based management team and board of directors and will besubject to New Jersey captive-insurance laws, regulation andoversight.

“We appreciate the level of collaboration with the New JerseyDepartment of Banking and Insurance on this initiative,” saysBeverly Barney, vice president and actuary for Prudential.

New Jersey established a captive-insurance website in May called“Captive Corner” that provides information for companies seeking toestablish captives, including regulatory guidance, forms and linksto admission packets.

“We are clearly jubilant to see the first captive formed in NewJersey within two months of the law going into effect,” says GreggSgambati, president of the New Jersey Captive InsuranceAssociation.