NU Online News Service, Sept. 7, 1:31 p.m.EDT

The Tennessee Department of Commerce and Insurance (TDCI), saysit has licensed its first captive insurance company since therevision of the state's regulation of the captive industry earlier this year.

Commissioner Julie Mix McPeak authorized Park View InsuranceCo., which is now licensed in Tennessee to handle risk-mitigationservices as a pure captive for parent company HCA Inc., aNashville-based operator of hospitals and health systems throughoutthe country, according to the TDCI.

Tennessee's captive regulation and market were established in1978. In more recent years, other states' regulations evolved withtheir markets, resulting in companies looking to those states to bedomiciles for their captives companies, the department says.

"The revision of the law to be on par with other states issignificant," McPeak says in a statement. "It modernizes ourregulatory framework and helps Tennessee compete with other states.I believe Tennessee, which already regularly ranks high amongdestinations for company relocations, can compete on a moreregional level with other states that have seen marked success overthe years.

Tennessee Gov. Bill Haslam, who led the initiative to update theregulation notes that with the signing of the captive application"and more modern regulation in place, Tennessee begins the processof again being a state sought by companies here and elsewhere to bethe home for their captive insurers."

A TDCI department spokesman tells NU Online New Service thatthere has been "substantial interest" in the domicile and thatthere are "ongoing talks" with a variety of companies.

"The commissioner has said that there are a number of companiesin Tennessee and the Southeast region that fit the profile" ofcompanies that would benefit by forming a captive in Tennessee, hesays.