• Tennessee Thriving with New Captive Insurance Law
  • March 29, 2012 | Author: Kevin M. Doherty
  • Law Firm: Burr & Forman LLP - Nashville Office
  • Tennessee Governor Bill Haslam signed a comprehensive overhaul of Tennessee's captive insurance law in 2011 that puts Tennessee at the forefront of captive insurance domiciles and permits cutting edge captive formations ("Revised TN Captive Insurance Act", T.C.A. Sections 56-13-101 et seq.). In addition to traditional single-owner captives, group captives, industrial insured captives, and risk retention groups, the law now permits the formation of protected cell captives (including incorporated cells), branch captives, and special purposes financial captives (SPFC's). The updated law also now authorizes employee benefits risk and worker's compensation (for companies who otherwise qualify as self-insureds) to supplement the standard property and casualty insurance coverages offered by captives (including professional liability, general liability, errors and omissions, director's and officer's, and commercial property coverages), and it allows captives broad reinsurance and excess insurance authority. Two captives have been formed since the law became effective on September 1, 2011, and there are several more in the pipeline.