New Jersey insurance department approves captive insurer
Richard Badolato, acting commissioner of the New Jersey Department of Banking and Insurance has approved a captive insurer formed by the Deborah Heart and Lung Center of Browns Mills.
The new captive will provide comprehensive general liability insurance coverage for the centre and medical/hospital professional liability insurance for its employees. The new captive is the 21st captive insurance company approved in New Jersey since the enactment of the Captive Insurance Law in 2011.
“We welcome Deborah Heart and Lung Center’s new captive insurance company to New Jersey’s growing captive market,” said Badolato.
“The centre’s decision to set up a captive insurer is a testament to the strength of our market and another indicator that captive insurance is an excellent risk management financing option.”
Deborah Heart and Lung Center is a not-for-profit facility in Burlington County, NJ, which focuses exclusively on cardiac, vascular and lung disease. It works with its fundraising arm, the Deborah Hospital Foundation, to finance patient care. In 2010, the centre opened an emergency room that accepts ambulances and walk-in patients.
“It was a pleasure working with New Jersey on the captive’s licensing,” said Susan Bonfield, the centre’s general counsel.
“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.”
Legislation allowing the formation of captives in New Jersey was enacted in 2011.Prior to the enactment of the Captive Insurance Law, P.L. 2011, c.25, New Jersey companies that wished to form captives had to do so in other states and countries.
Today, New Jersey companies can use the law to insure their risks in New Jersey.