Small Business Reading Room

Friday, August 04, 2006

Delaware Captive Insurance Companies

Ever heard of a captive insurance?

Captive insurance is a risk management tool for businesses.

Captive insurance companies are usually formed by businesses that wish to better manage the cost and administration of their insurance coverage. Captives, as they are called, are insurance companies that are owned by the entities they insure. Because they are insurance companies and bear risk, they are regulated and must be licensed.

In 2005, the Delaware General Assembly, at the urging of Commissioner Denn and representatives of the Delaware financial services and legal communities, passed House Bill 218, modernizing Delaware law regarding the formation of captives and positioning Delaware to become a home to the growing number of captive insurance companies being created by companies worldwide.

For more details on the benefits of the Delaware captive industry visit www.delawarecaptive.org.

posted by Unknown at 7:43 AM - permalink 1 comments

1 Comments:

Thank you for sharing this information about delaware captive. Answered a lot of questions for me.

By greg, at 3:51 PM