We attended the Delaware Captive Insurance Association Forum on May 12th and 13th in Wilmington, DE. The event was well attended with 79 participants from many disciplines all working in the captive space: attorneys, actuaries, CPA’s, captive managers, and Delaware regulators including the Insurance Commissioner, Karen Weldin. The forum offered a great opportunity to meet with several key players working with captives domiciled in Delaware.
Sandra was asked to present Tuesday morning and conducted a lively session regarding policy construction with Andrew Rennick, Esquire of Gordon, Fournaris & Mammarella, P.A. We had an interesting session with Steve Kinion, the Delaware Director, Bureau of Captive and Financial Insurance Products, where he shared his views on the National Association of Insurance Commissioners’ (NAIC) move to change the definition of multi-state insurers which may adversely affect captives. Steve also went over his proposed changes to Delaware regulations primarily affecting series captives, as well as providing new loan guidelines for all captives.
One of the participants of note was Chaz Lavelle of Bingham Greenebaum Doll, LLP. Chaz was the Tax Counsel for two key taxpayer victories in captive insurance cases including the Humana Inc. v. Commissioner which decided the “brother-sister” issue regarding risk sharing and risk distribution.
Great forum and time well spent!
Last week, we attended (via Webinar) a presentation at the CICA International Conference, held in Arizona, entitled “Best Captive Practices for 831(b)s- Do Them Right or Don’t Do Them At All.
This presentation looked at small captives from the perspective of a captive manager, an actuary, an attorney, and a captive owner. It was an interesting presentation covering many aspects of captive insurance companies and their structure including best practice guidelines. While there were many topics worth sharing, one of the initial items discussed was what NOT to place in your small captive (may be appropriate in a larger captive, or a group captive):
- Primary, working layers of easily accessible commercial coverages like general liability and auto liability;
- High frequency coverages like workers compensation, auto physical damage; and
- Long tail or primary coverages seen as inherently “risky” like medical malpractice.
What you are likely to want to place in your small captive are more “traditional,” low frequency risks that potentially have a high severity:
- Weather related risks: flood, wind;
- Pollution liability and clean-up; and
- Excess or Wrap/DIC policies.
You’ll also want to consider including coverage for some more non-traditional risks (but be careful that these are not just “business risks”) including coverage that is not available at all in the traditional insurance market and currently self-insured.
Want to learn more? Please give us a call, or send us a comment or question!
Capterra Risk Solutions attended a wonderful presentation on September 12, 2013, hosted by Pittsburgh Business Times and the Southpointe Golf Club. “Social Media in 20 Minutes a Day” was presented by Cindy Rack the Social Media Strategist for Social Voice Marketing, LLC. Her mission is to bring sanity to social media. Cindy leads workshops, provides video-based trainings, strategy plans, consulting, and customizations.
To see photos from the program, please visit: http://bizj.us/t7bcr/i/3
For more information on Social Voice Marketing, LLC and Cindy Rack visit: http://socialvoicemarketing.com/