Tennessee introduces dormant captive legislation
The Tennessee Department of Commerce & Insurance (TDCI) has introduced three new rules for captive insurance companies, to take effect on December 21, 2017. Firstly, the state would allow individual protected cells to go dormant and later be restarted. The second new rule is that new captives and cell companies would no longer be required to be audited if they were formed in the last quarter of a year, representing cost-savings for the captives and cell companies. The third rule is that a full financial exam will not be required where specific limited questions have arisen about the operation of a captive company. “These rule changes represent six years’ of lessons learned in licensing and regulating captive insurance companies and again demonstrate Tennessee’s commitment to growing an important economic component,” said TDCI commissioner Julie Mix McPeak.