The Prudential New Jersey Captive Insurance Co. (NJCAP) has been approved as the first captive insurer to be licensed in the state, according to the New Jersey Department of Banking and Insurance.
The department issued a certificate of authority to NJCAP, effective July 1, to form a pure captive.
Gov. Chris Christie in February signed legislation allowing captives 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 Jersey Insurance Commissioner Tom Considine in a statement.
Prudential established NJCAP to manage risk in a portion of its life insurance and annuity policies. NJCAP will have a New Jersey-based management team and board of directors and will be subject to New Jersey captive-insurance laws, regulation and oversight.
“We appreciate the level of collaboration with the New Jersey Department of Banking and Insurance on this initiative,” says Beverly 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 to establish captives, including regulatory guidance, forms and links to admission packets.
“We are clearly jubilant to see the first captive formed in New Jersey within two months of the law going into effect,” says Gregg Sgambati, president of the New Jersey Captive Insurance Association.