The South Carolina Captive Insurance Association (SCCIA) has requested assistance with the National Association of Insurance Commissioners staff proposal to change the definition of a multi-state reinsurer.
The SSCIA’s Michael Coulter has requested in writing that the new proposed preamble to the Part A: Laws and Regulations accreditation standards are clarified to the extent that the Captive Life/Health Reinsurers section is the only section of the preamble applicable to captive insurers.
Coulter said: “The language in the Life/Health and Property/Casualty Insurers section of the preamble does not exclude captive insurers, and the language in the Captive Life/Health Reinsurers section does not provide that the captive insurers described in that section are the only captives to which accreditation standards apply.”
As many captive insurers write property/casualty coverage, the SCCIA are concerned that the absence of clarifying language in the Life/Health and Property/Casualty Insurers section of the preamble could be interpreted to apply to captive insurers.
In the letter, Coulter claimed that such an interpretation would be “disastrous” for the captive insurance industry.
He continued: “We respectfully request that you add suitable language to the preamble clarifying that captives are not subject to the Part A accreditation standards.”
The SCCIA have said that the following, or similar language, in the Life/Health and Property/Casualty Insurers section of the preamble could be used: “For avoidance of doubt, in no event shall Part A standards apply to any captive insurers other than those captive insurers described under the Captive Life/Health Reinsurers heading set forth below.”
