D.C. Seeks Wild Card CaptiveProvision

Washington, D.C. is looking to add a “wild card” to its captivelaw.

Arthur D. Perschetz, chairman of the Captive Insurance Councilof the District of Columbia, explained that under the proposedamendments, the insurance commissioner would be able to allow “acaptive in D.C. or one being formed in D.C. to avail itself of anybenefit of another captive law anyplace else.” He said this is“similar to banking wild card statutes,” which allow a state bankto do “basically anything that a national bank can do.”

Under the proposed D.C. captive law amendment, for example, if ajurisdiction has a unique provision allowing credit forreinsurance, “the commissioner could allow D.C. captives to do thatif he thought it was beneficial to the district,” with the decisionmade on a case-by-case basis. Another example might be allowing acaptive to write workers' compensation, he said.

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