WASHINGTON—The Labor Department has proposed allowing freight carrier R+L Carriers Shared Services L.L.C. to fund its employee benefit risks through a captive insurer.
Under the proposal, published in Monday’s Federal Register, Wilmington, Ohio-based R+L would use Royal Assurance Inc., a captive licensed in Arizona, to reinsure accidental death and dismemberment benefits, life, and long-term and short-term disability risks that are insured by a unit of Unum Group.
Captive owned by founding family
Royal Assurance is owned by members of the family that founded the freight carrier, which has about 9,000 employees.
R+L’s application was filed by George O’Donnell, senior vp with Aon Hewitt Inc. in Somerset, N.J.
This year, the Labor Department gave final authorization to New York-based Deutsche Bank Americas Holding Corp. to use its Vermont captive to reinsure long-term disability benefits, as well as approving Basking Ridge, N.J.-based Verizon Communications Inc.’s application to fund LTD risks through its Vermont captive insurer.
WASHINGTON—The Labor Department has given Verizon Communications Inc. final approval to use its Vermont captive insurance company to reinsure group term life insurance benefits.