Tennessee updates captive insurance lawReprints
Tennessee has adopted new provisions for protected cell and dormant captives.
Public Chapter 354, as the legislation is known, updates the state’s captive insurance act, which was adopted in 2011. It gives protected cell captives more flexibility in moving cells between captives and spinning individual cells into stand-alone captives, according to a press release issued by the Tennessee Department of Commerce & Insurance on Wednesday.
It also allows captives to develop a process to exist in dormant status so captive managers can buy insurance from the traditional market, but return to the captive when the market fluctuates, according to the department.
Tennessee added 104 captive entities in 2016, a record number, for a total of 160 captives, according to the department. Total premium dollars surpassed $1 billion for the first time in state history in the 2016 tax year, according to the department.