Washington, D.C., Grants Second Captive License
The Washington, D.C., Department of Insurance and Securities Regulation has licensed Columbia Group Insurance Inc., a pure-captive insurance company, as the second captive for the District.
CGIIs sponsor, Columbia Group Insurance Trust, is being formed to provide commercial insurance coverage to USA-IT Inc., American Construction and Engineering Services Inc., and Premier Management and Consulting Ltd.
The department said that others getting coverage through the new captive include several real estate limited partnerships, which are affiliated with the sponsor company through common ownership, beneficial ownership, or control, according to the D.C. insurance department.
CGII intends to issue corporate reimbursement policies, difference-in-conditions coverage, and professional liability policies to these entities in an effort to provide coverage for exposures that are either uninsured or excluded under the insureds current traditional insurance program, the department said.
The Districts first captive, American Captive Corp., a wholly-owned subsidiary of NCRIC Inc., which is a medical professional liability insurance company, is a sponsored captive licensed in April, 2001.
Although neither of the captives are association captives, the Districts focus is still on trade associations in the D.C. area, according to Kathryn Westover, captive advisor to the D.C. departments Captive Insurance Division.
The department, she said, is actively meeting with associations to "see how we can help them use captive insurance to better serve their membership."
She said the department has met with a "professional association of trade association executives, and they are beginning to look at developing structures that can help association members manage, not only property-casualty risks, but also employee benefit risks."
"The Captive Act of 2000 opened the door to the District becoming a viable captive domicile," said the commissioner of insurance and securities regulation for Washington, D.C., Lawrence Mirel, in a statement.
"With CGII and other captives slated to come on board in the next year, we see captives as an opportunity for the District of Columbia to diversify its economic base," Mr. Mirel added.
Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, February 18, 2002. Copyright 2002 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.
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