The NCDOI has spent the past few months working closely with captive managers to determine the coverages that would be best placed in a captive. The department’s Lori Gorman and Joseph Rosenberger explain more
The North Carolina Department of Insurance (NCDOI) has developed a user-friendly and interactive online filing system for use by the Captive Insurance Companies Division and approved captive managers.
This secure tool walks the user through the information and various documents required for a complete application. Once an application is submitted online, it is assigned to a captive analyst within the Captive Insurance Companies Division.
Important factors
North Carolina’s Captive Insurance Act, passed in 2013, allows for both a modern and flexible approach to captive regulation and formations. Our analysts review each application filing to make sure it complies with applicable North Carolina law, depending on the type of captive being formed. We review important factors; including the nexus between the insured and the captive owner, the experience of the captive insurance company’s officers and directors and the proposed initial capitalisation.
Our staff of credentialed actuaries assist in the review of feasibility studies together with business plans and financial projections to help determine an appropriate level of capitalisation for the entity being formed.
Factors such as coverages and coverage limits, claims management processes, rating and pricing guidelines as well as the captive’s reinsurance programme are important considerations.
North Carolina has grown as a respected captive domicile since our captive law passed in 2013. While maintaining the commitment to low-cost formation of captive insurers in our state, we have seen continuous developments in our policies. We’ve also made refinements to our multi-step application review procedures to address the evolving needs of the captive industry.
Our internal processes for approval include collaboration to ensure thoughtful regulatory oversight is applied consistently to North Carolina-domiciled captives. This approach also allows us to pivot as necessary when considering emerging trends in the industry.
The application process usually takes about two to three weeks, varying on how thoroughly the application is filled in. This timing can vary based on the quality and completeness of information provided in the application and responsiveness to any NCDOI’s inquiries for further information.
The NCDOI works closely with the service providers who operate in North Carolina to review and approve applications in a timely manner.
Our promise
NCDOI is committed to providing excellent customer service in an open and accessible regulatory environment throughout the application process.
Careful review during the initial application process permits analysts to address concerns before significant ongoing issues can arise.
Effective communication throughout the formation and lifecycle of a captive empowers us as regulators to partner with captive owners so that they fully realise the benefits of a captive insurance company.
