Captive Insurance Companies Double in Delaware
The prisoner Office still spends more than it brings in premium tax revenue. But with the growth of captive insurance companies doing business in Delaware, revenues must meet or exceed the costs at this time next year. During the last year, premium income from the captive insurance rose by 28 percent, or about $ 250,000, Stewart’s office reported. Many of the companies came to Delaware in the direction of the end of the year in which the amount of the premium tax they pay in that year. Captives are made by the companies they serve to property and liability insurance to offer at a lower cost than if they were to that insurance buy from an outside company.
Stewart promised two years ago to lure more companies to Delaware for more revenue and increase business for local lawyers and accountants to increase. Companies are finding attractive Delaware law for the creation of captives, including a rule that allows various spin-offs from the same company to protect themselves against each other liability insurance.Delaware law is flexible to set up non-traditional forms of captives, said Clay Foltz, a part owner of Delmarva Underwriters Ltd. of Dover. The company, which endorses deposit bonds for construction, doing business as The Bond Agency.
May 12th, 2011 at 4:21 pm
I’m not sure how much I like the phrase, “law is flexible” but I do know that when you follow the rules, captive insurance can be a good thing.