Governor Chris Christie signed into law legislation that enables New Jersey to license and regulate captive insurance companies, creating a new industry in the state.
The signing of bill A2360 allows New Jersey to join other domestic and international locations to become a captive insurance domicile. The captive insurance law will go into effect in 90 days from Feb. 22, when the bill was signed.
Gregg Sgambati, president of the New Jersey Captive Insurance Association (NJCIA), said in a statement that captive insurance companies create a path to new tax revenue, job creation and economic stimulus as a result of the businesses that set up to provide services to the industry. In addition, he said these special insurance companies will give existing corporations new reasons to do business in New Jersey.
The bill was passed by both houses on Jan. 6, along with other "Back to Work N.J." bills.
"The fact that this bill passed the governor's litmus test along with its unanimous passage in both houses is a clear sign that we have an excellent economic opportunity for everyone here," Mr. Sgambati observed.
As for establishing a captive infrastructure in New Jersey, Richard W. Wright, senior vice president, Willis Captive Consulting Practice in Morristown, N.J., said that Doug Wheeler, director of the Division of Insurance, will be involved with fleshing out the captive legislation. Advisory boards and committees will be set up to create the infrastructure, a process he said Willis has volunteered to be part of.
"We're hoping to develop a pro-forma financial model to show the state how much revenue is potential, and that will help them craft and fund a budget," he said.
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