Editor's note: Steven A. Meyerowitz, Esq.,is a director of FC&S Legal. FC&S and PC360 are both ownedby Summit Professional Networks

Delaware has become the sixth largest captive-insurancedomicile. Delaware Insurance Commissioner Karen Weldin Stewart saidin a statement that the state grew its number of captive insurersin 2013. In particular, at year-end 2013, there were 298 licensedcaptives with 266 being active. As of year-end 2012, Delaware hadlicensed 212 captive insurers with 192 being active.

Commissioner Stewart noted, "Delaware service providers, such asattorneys and accountants, are providing services to the captiveindustry at a greater rate than at any other time in thedepartment's history. This shows that the captive bureau ismeeting, and even exceeding, its statutory mission of expandingeconomic development."

According to Steve Kinion, director of the captive bureau, thegrowth resulted from industry's recognition that Delaware is apremier captive domicile. Kinion stated, "In 2012 Delaware was theworld's tenth largest and third largest U.S. domicile. While weremain the third largest U.S. domicile, our global reach andpresence has significantly increased."

Commissioner Stewart added, "One of the attributes of domicilingin Delaware is that captive insurers can take advantage ofDelaware's premier entity laws. No other jurisdiction integratesbusiness and corporate laws with alternative risk transfer likeDelaware."

In 2005, the Delaware General Assembly passed House Bill 218,changing Delaware law regarding the formation of captives.

Learn more: http://captive.delawareinsurance.gov/.

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