The New Jersey-based captive of Healthcare Services Group has been granted approval for new business lines.
In January 2014, HCSG received approval to form a captive insurer to write general liability deductible reimbursement coverage for the company.
Under the new authority, the captive will now cover limited medical, short term disability and term life.
The plans are regulated by the Employee Retirement Income Security Act of 1974 (ERISA), which also required approval of the transaction by the US Department of Labour.
Founded in 1976, HCSG, provides professional management of healthcare industry services such as housekeeping, laundry, dining and nutrition.
Ken Kobylowski, Department of Banking and Insurance Commissioner, said: “Healthcare Service Group’s expansion of its captive insurance company is a testament to the company’s innovation and another indicator of the strength of New Jersey’s captive market.
“HCSG’s expansion of a captive approved just last year shows how captives can adapt quickly to help companies cover additional risks and grow their business.”
Andrew Kush, senior vice president of human resources and risk management, Healthcare Services Group, added: “It was a pleasure working with New Jersey on the captive’s business plan change. The regulators were thorough but expeditious in their review, which is clearly a testament to their expertise within the industry and commitment to the captive insurance community.”
Healthcare Services Group, New Jersey, Ken Kobylowski, North America