Medical centers set up New Jersey captive insurer for liability coverage

TRENTON, N.J.—New Jersey has licensed the state's second captive insurance company, an industrial captive formed to write liability coverage for two sister medical centers.

Sequoia Insurance Co. of New Jersey was formed by Bayonne Medical Center and Hoboken University Medical Center, both of which are owned by HUMC Holdco L.L.C.

The New Jersey Captive Insurance Assn. announced the new captive formation Monday. According to the association, the state's Department of Banking and Insurance is reviewing another application involving a captive redomestication to New Jersey.

New Jersey licensed its first captive in July—for Newark-based Prudential Insurance Co. of America—shortly after the state's new captive law took effect in May.