NU Online News Service, May 27, 10:00 a.m. EDT
Legislation passed last weekend will allow the formation of captive insurers in Tennessee as of July 1, according to a spokesperson.
Tennessee was the second domicile in the U.S. to have a captive law in the 1970s, after Colorado, but eventually discouraged formations. Currently there are only a handful of licensed captives in Tennessee.
Julie Mix McPeak, commissioner of the Tennessee Department of Commerce and Insurance in Nashville, Tenn., tells NU Online News Service in an e-mail: "We are happy that [Tennessee Gov. Bill Haslam's] captive-insurance legislation passed. It will go a long way toward modernizing the law that Tennessee has used to regulate this segment of its insurance industry and will help produce a strong, vibrant marketplace within the state."
Now that the bill has passed, she adds, "the work of implementing it gets underway. Our next step is to promulgate rules to fortify our regulatory framework to be able to accept applications from companies by July 1."
Kevin M. Doherty, an attorney with Burr Forman LLP in Nashville, Tenn., told NU in March that the bill, introduced in February, was a "cutting-edge law modeled on several other domiciles."
McPeak, who took office on Jan. 15, was appointed by then-Gov.-elect Bill Haslam. She previously served as an insurance regulatory attorney for Burr & Forman, LLP in Nashville, Tenn. She also served as the executive director of the Kentucky Office of Insurance.
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