Microsoft seeks to expand benefits funded by its captive insurer

WASHINGTON—Microsoft Corp. is seeking Labor Department approval to expand the benefit risks funded through its captive.

Redmond, Wash.-based Microsoft wants to use the Vermont branch of its captive, Bermuda-based Orcas Ltd., to reinsure life insurance and accidental death and dismemberment policies written by Prudential Insurance Co. of America Inc.

The additional coverage would affect about 54,000 U.S. employees, according to an application submitted this week by George O'Donnell, senior vp in the Somerset, N.J., office of Aon Hewitt Inc.

In 2009, the Labor Department approved an arrangement in which the Vermont branch captive reinsured long-term disability coverage, also written by Prudential.

PLUS: Read the BI White Paper Captives for Benefits: How to Use a Captive to Save Money and Enhance Benefits Coverage