Today, Captive Insurance Times (CIT) reported that Governor Bill Haslam of Tennessee signed legislation that improves upon the state’s already business friendly rules regarding captive insurance companies. As we have noted before in Captivating Thinking, states benefit immensely from domiciling captive insurance companies. Captives make businesses stronger and protect jobs. Captives also create jobs in states that license and regulate them. Finally, captives also bring premium tax revenue and licensing fees into state coffers.
Tennessee’s latest legislation is another move in the chess match waged among domiciles to attract captives. As we have pointed out before in Captivating Thinking, competition among domiciles is a win for captives and the businesses they serve. In fact, competition among domiciles in the last 10 years has made captive ownership affordable and viable for far more small and mid-market businesses.
The new legislation in Tennessee, “establishes a new way for captives to re-domesticate to the state.” According to CIT, “The new legislation means that companies can simply register a transfer of the captive’s domicile once the insurance department has approved the re-domestication.” The legislation also strengthens the defense posture of protected cells in a cell captive domiciled in Tennessee.
To read the entire article in Captive Insurance Times, CLICK HERE.