Tennessee Captive Insurance Domicile

Tennessee Captive Insurance DomicileAs one of the oldest U.S.-based captive insurance domiciles, Tennessee’s growth has been extraordinary. After revamping its antiquated captive law in 2011 with the Revised Tennessee Captive Insurance Act, the state has attracted 33 new captives in record time--35 in total as of 2014.

Although the antiquated 1978 law proved to be a hindrance for over two decades in terms of captive insurance growth, the southern domicile has gained substantial recognition for its ability to write workers’ compensation coverage directly into the policies over the past three years, a major draw for larger organizations. The new law also allows for the formation of single parent and group captives, risk retention groups, branch captives, special purpose financial captives and protected cell companies, including incorporated cells.

The shift to positioning Tennessee as a premier captive insurance domicile has not occurred by happenstance. The state has allotted resources to help transform captive regulation. The Department of Economic Development is focusing on captives, i.e. regulatory compliance and comprehensive risk coverage for middle market businesses. The Tennessee Captive Insurance Association (TCIA) has also lent support in this effort.

Those looking to form a Tennessee captive insurance company should take an active role in the design and implementation of the captive, in collaboration with a reputable captive management company. A Tennessee captive management team should include tax, legal, and insurance professionals to address all the moving parts of the planning. Capstone along with The Feldman Law Firm LLP serves closely-held, middle market businesses across the U.S. and has set the bar high for comprehensive alternative risk planning services. Capstone encourages prospective captive insurers to explore our educational materials, including whitepapers, videos, case studies, and more.

Approved Tennessee Captive Insurance Manager

Capstone Associated Services, Ltd. is approved as a captive manager in the Tennessee domicile—controlling risk, compliance, and other initiatives put forth by the domicile mirrors our firm’s mission. Reputation, growth, and sustainability are paramount for domiciles as well as captive managers in the industry.

Capstone offers clients a choice of multiple domestic (U.S.) and offshore jurisdictions, and in support of such, Capstone maintains offices, in addition to Houston, in other U.S. domiciles and in offshore locations. In this way, we ensure that middle market businesses are getting the best support possible in the formation and management of their Tennessee captive insurance company. Capstone is proud of its CAP_YEARS_NUMBER track record of providing the best in captive insurance planning, leveraging U.S.-based domiciles.

According to the director of the Tennessee captive insurance section, Michael Corbett, “Any captive that comes to Tennessee and meets the spirit of this test will have the full support of the Tennessee captive section. On a more granular level, the Tennessee captive section seeks to ensure that all captives are properly capitalized and that our section fosters an environment and commitment to the captive insurance industry that supports all present and future captives.”

Tennessee’s governor, Bill Haslam lent his voice to the issue surrounding captive growth in the state. He commented that “a thriving captive insurance industry is good for Tennessee, its businesses and Tennessee workers.” Overall, he believes that captive insurance is a way for means for businesses to reduce the impact of rising insurance costs, increasing regulation, and rising taxes.

Since 1998 Capstone has operated fully or partially-tax exempt captive insurers formed under Sections 831(b) and 831(a) of the Internal Revenue Code, all in conjunction with The Feldman Law Firm LLP. Capstone also administers captive insurers under Section 501(c)(15) of the Code. We continue to serve our clients with true turnkey captive planning services.

If you are in the Tennessee area, please contact us at WEB_TEL or simply complete the short form below.

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