A North Carolina Captive Insurance Association (NCCIA) committee led by Womble Carlyle attorney Jonathan Reich has created a code of ethics for its members, effective 1 June.
As the first of its kind in the US, the code requires all current and future NCCIA members to agree in writing to adhere to 10 canons for ethical conduct.
“This code of ethics is the first such code developed to guide the decisions of those advising, counseling, operating, and owning captive insurers,” Reich said.
“We believe this code will help the industry grow in North Carolina, as participants and the public will have confidence that captive insurance companies are operated in a responsible manner.”
According to the code, captive professionals must not “willfully violate any laws or regulations”, or advise clients to willfully violate laws or regulations, and they are obligated to “fully and frankly disclose any conflicts of interest”, or situations which could be perceived as a conflict of interest, with each client.
Captive insurance professionals in the state will also agree to “continually and regularly” improve their skills and competence.
Reich continued: “This aspirational code is designed to raise awareness of ethical issues faced by captive insurance professionals and to provide guidance in those situations.”
“I hope that the code’s adoption in North Carolina also serves as a catalyst for a broader dialogue within the industry on appropriate conduct, appropriate client service, and the ethical operation and utilisation of captive insurers.”
