Dow Corning gets OK to expand benefit risks through captive insurer

WASHINGTON—The Labor Department has given tentative authorization to Dow Corning Corp. to expand benefit risks through its Washington-based captive insurer.

Under the arrangement, Midland, Mich.-based Dow Corning, a joint venture of Dow Chemical Corp. and Corning Inc., would use its captive, Devonshire Underwriters Ltd., to fund basic life insurance benefits. Minnesota Life Insurance Co. would reinsure the risk with Devonshire.

In 2009, the Labor Department approved an arrangement in which Devonshire reinsured certain other types of life insurance coverage written by Minnesota Life, as well as long-term disability coverage written by Aetna Life Insurance Co.

Dow Corning redomesticated Devonshire, which it also uses to fund various casualty risks, in June 2009 to the District of Columbia from Bermuda.

Dow Corning's application was filed by Spring Consulting Group L.L.C. in Boston.