In a move that could signal the first stages of establishing itself as a captive insurance domicile, Maryland legislators have introduced a bill ordering a study of the captive insurance industry.
Formerly intended to order the establishment of a task force to undertake the study, the bill now calls for the study to be done directly by the Maryland Insurance Administration. The study will examine the industry as it is run and regulated in other states, focusing on elements including: the “potential benefits of hosting a captive insurance industry in the State to different classes of insureds”; “the impact on the State and the domestic insurance industry”; and “the effectiveness, cost and long-term viability of alternative regulatory or market mechanisms addressing the same or similar markets that have been implemented or are being considered in other states,” along with questions of regulation models and consumer protections.
The fate of the bill, which is currently in the state Senate, will be decided by April 8th, the end of the current legislative session.
Maryland, captive insurance, domicle