Tennessee

Tennessee

Business is confronted by risk every day. Forming a Captive Insurance Company has become a mainstream tool for mitigating traditional risks or non-traditional risks resulting in increased control and cost reductions. Tennessee’s state of the art Captive legislation, a unique centrally located geographic location and an Insurance Department dedicated to serving the needs of all types of Captives makes for a winning combination worthy of consideration.

[Last updated: 12/07/16] 

Regulatory contact:

Michael A. Corbett, Director - Captive Section
"500 James Robertson Parkway, 7th Floor
Nashville, TN 37243
USA"
615.741.3805
captive.insurance@tn.gov
http://www.tn.gov/commerce/section/ins-captive-insurance


Name of captive legislation

Revised Tennessee Captive Insurance Act of 2011

Year legislation passed

1978; amended 2011

Recent amendments

Statute amended in 2013, 2015 and 2016

Do you allow cell captives

Yes

Total number of licensed captives 

136 Stand alone captives; 326 Cell companies; totalling 462 Risk Bearing Entities (RBEs).

Number of Risk Retention Groups or group captives

8 RRGs

Number of single parent captives

99 pures

Number of cell captives

27 Protected Cell Captives with 326 cells

Number of licences granted in the past year (2015 calendar year)

52

Approximate (or average) length of time to process a new captive 

30 days

Captive tax rates 

0.4% on first $20M and 0.3% thereafter.  Reinsurance at 0.225% on first $20M and 0.15% thereafter. Aggregate premium tax maximum $100K for all captives except for protected cells companies with >10 cell whose maximum is $100K plus $5K for every cell over 10.

Minimum capitalisation rate

Pure - $250,000
Protected Cell - $250,000
Association - $500,000
Industrial Insured - $500,000
Risk Retention Group - $1,000,000

Licencing fees

License Fee - $675; Issuance Fee - $440

Top 5 uses for captives

Medical stop loss, liability, property, cyber risk, E&O & D&O

Total premiums received by the captives

$652,000,000

Total value of assets under management

$410,000,000

Captive managers registered to conduct business in the domicile

Advantage Insurance Management (USA) LLC
Alliance Risk Management, LLC
Arsenal Insurance Management, LLC
Beecher Carlson
Capstone Insurance Management, Ltd.
Captive Planning Associates, LTD
CIC Services, LLC
Intuitive Captive Solutions, LLC
Iroquois Captive Services, LLC
Kane (USA), Inc.
KeyState Captive Management, LLC
KRP Managers, LLC
M.R. Mead & Company, Inc.
Marsh Management Services, Inc.
Oxford Management Company, LLC - SELF MANAGED
Pro Group Captive Management Services, Inc.
Risk Matters, LLC
Risk Services, LLC
River Oak Risk
Roundstone Management, Ltd.
Somers Risk Consulting, Inc.
Strategic Risk Solutions
The Plateau Group - SELF MANAGED
The Taft Companies, LLC
USA Risk Group (South), Inc.
WACO - SELF MANAGED
Willis Management, Ltd.

 

 

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