Florida Seeks Captives
OIR released an announcement on April 25, 2012 touting changes to its captives law after the implementing bill was signed by the Governor.
The release noted that existing law had already created provisions authorizing the creation of U.S. domiciled captive insurers by establishing operational criteria and standards. This year’s legislation, House Bill 1101, added new provisions specifying criteria for the formation, incorporation, coverage, capital and surplus, reporting, licensure and reinsurance of captive insurers.
“We welcome captive insurers to Florida’s insurance marketplace. The new law will encourage the formation of new captive insurers, which will promote increased investment in our insurance marketplace….” said Kevin McCarty, Florida’s Insurance Commissioner.
House Bill 1101 permits or enhances the creation of “pure captives, industrial insured captives, special purpose captives and captive reinsurance companies.” The law greatly expands the type of captives Florida may now approve. It permits captive insurance companies to provide all insurance under the Florida Insurance Code, except for workers’ compensation and employer’s liability, life, health, personal motor vehicle, and personal residential property insurance. A special purpose captive for example is a “captive insurance company that is formed or licensed under this chapter that does not meet the definition of any other type of captive insurance company defined in this section.”
Please feel free to contact us for more information about this new law or the types of captives now authorized.