Commissioner McPeak Authorizes First Captive Insurance Application Under New Law
Friday, September 02, 2011 | 03:47am
NASHVILLE- Tennessee Department of Commerce and Insurance (TDCI) Commissioner Julie Mix McPeak has authorized the first captive insurance application since the state’s regulation of the industry was revised this year.
Park View Insurance Company is now licensed in Tennessee to handle risk-mitigation services as a pure captive for parent company HCA Inc., a Nashville-based operator of hospitals and health systems throughout the country. Tennessee’s captives regulation and market were established in 1978. In more recent years, other states’ regulations evolved with their markets, which resulted in companies looking to those states to be domiciles for their captives companies.
“With the captive application being signed today and more modern regulation in place, Tennessee begins the process of again being a state sought by companies here and elsewhere to be the home for their captive insurers,” said Tennessee Gov. Bill Haslam, who led the initiative to update the regulation.
“The revision of the law to be on par with other states is significant,” said McPeak. “It modernizes our regulatory framework and helps Tennessee compete with other states. I believe Tennessee, which already regularly ranks high among destinations for company relocations, can compete on a more regional level with other states that have seen marked success over the years.
“The growth of Tennessee’s insurance market – and I have been clear in our communications with industry representatives about this – will not, however, come at the expense of consumers,” McPeak said. “The linchpins of insurance market integrity are vigilant examinations of companies and the strong enforcement of penalties when the law is violated.”
Public Chapter No. 468 was passed during this year’s session of the General Assembly. It updated the existing law regarding captive insurance companies and authorized the formation of sponsored captive insurance companies, branched captive insurance companies, and special purpose financial captives (SPFCs).
The Department of Commerce and Insurance works to protect consumers while ensuring fair competition for industries and professionals who do business in Tennessee. www.tn.gov/commerce/