NU Online News Service, Sept. 7, 1:31 p.m. EDT
The Tennessee Department of Commerce and Insurance (TDCI), says it has licensed its first captive insurance company since the revision of the state's regulation of the captive industry earlier this year.
Commissioner Julie Mix McPeak authorized Park View Insurance Co., which is now licensed in Tennessee to handle risk-mitigation services as a pure captive for parent company HCA Inc., a Nashville-based operator of hospitals and health systems throughout the country, according to the TDCI.
Tennessee's captive regulation and market were established in 1978. In more recent years, other states' regulations evolved with their markets, resulting in companies looking to those states to be domiciles for their captives companies, the department says.
"The revision of the law to be on par with other states is significant," McPeak says in a statement. "It modernizes our regulatory framework and helps Tennessee compete with other states. I believe Tennessee, which already regularly ranks high among destinations for company relocations, can compete on a more regional level with other states that have seen marked success over the years.
Tennessee Gov. Bill Haslam, who led the initiative to update the regulation notes that with the signing of the captive application "and more modern regulation in place, Tennessee begins the process of again being a state sought by companies here and elsewhere to be the home for their captive insurers."
A TDCI department spokesman tells NU Online New Service that there has been "substantial interest" in the domicile and that there are "ongoing talks" with a variety of companies.
"The commissioner has said that there are a number of companies in Tennessee and the Southeast region that fit the profile" of companies that would benefit by forming a captive in Tennessee, he says.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
