Scott Kipper, insurance commissioner of Nevada, has announced an expedited approval process for single parent and 831b captive insurance companies.
The new process will allow applications to be approved within 24 hours. In addition, the total fees for establishing a pure parent company will be reduced by $4,000 to $1,050.
Captive International spoke to deputy commissioner Michael Lynch, head of captive insurance, about the new application process.
How will being able to have an application approved within 24 hours help to bolster the Nevada captive community?
This process will allow us to continue being the most 'Business Friendly' US domicile while allowing us to still do a thorough review of each captive application. Essentially, the Commissioner will issue Certificates of Authority as the applications come in and are recommended for approval as opposed to waiting for one day each month as was our past practice. The same review will be performed, just the wait time for the Certificate of Authority has been eliminated. We expect this to serve as just one more reason for new captive insurers to select Nevada as their domicile.
Will the reduction in fees be permanent or only apply for a limited amount of time?
The fee reduction is not contemplated as temporary.
How is Nevada working to support the captives already domiciled in the state?
As a well-funded enterprise agency, the Nevada Division of Insurance (DOI) has a very large section (23 full-time employees) supporting the regulatory oversight of our domestic captive insurers, which is in addition to DOI’s other supporting staff.
Are there any other captive-related regulatory or managerial changes on the horizon for Nevada?
At this time, Nevada plans to continue operating as one of the oldest and largest US captive domiciles, providing excellent support and regulatory oversight to our domestic captive insurers.
Nevada, captive insurance, domicile, 831b, US