The New Jersey Department of Banking and Insurance has started taking applications from companies that want to form captive insurers in New Jersey or move existing captives to the Garden State.
New Jersey Gov. Chris Christie, R, signed a bill permitting the formation of captives into law in February.
New Jersey will let companies set up life, health or annuity captives in the state.
A life company must have a qualified life actuary certify the adequacy of its loss reserves, and state law requires a captive to “maintain reserves that are actuarially sufficient to support the liabilities incurred by the captive insurance company reinsuring life insurance policies,” officials say.
Similarly, a captive insurer that issues annuity contracts should maintain reserves that are actuarially sufficient to support the liabilities provided by the contracts.
“No pure captive insurance company or industrial insured captive insurance company will be subject to any restrictions on allowable investments whatever… provided however, that the commissioner may prohibit or limit any investment that threatens the solvency or liquidity of any such captive,” officials say.
- Allison Bell