Commissioner Stewart Joins Fellow Regulators in DC Meeting with Members of Congress

 Health Care, Flood Insurance among Topics for Discussion with Federal Delegation       

DOVER, DE – Insurance Commissioner Karen Weldin Stewart and fellow members of the National Association of Insurance Commissioners (NAIC) were in Washington, D.C. this week to discuss insurance issues with members of Congress. Key topics included retirement security, flood insurance, cybersecurity and health reform.

Nearly 40 chief state insurance regulators and senior staff gathered for the 2016 Commissioner Washington, DC Fly-In. Before meeting their congressional delegations, the regulators were briefed by Senator Susan Collins from Maine and Congressman Sean Duffy from Wisconsin. Political analyst Stu Rothenberg also gave a presentation on the impact that the 2016 elections may have on states.

“My department is in regular contact with Representative Carney and Senators Carper and Coons on the important matters that face Delawareans,” said Commissioner Stewart. “The Fly-In is a great opportunity to sit one-on-one with our federal delegation and find ways to collaborate on issues such as health care, captive insurance companies and flood insurance.”

NAIC members spent two days meeting with their respective congressional representatives to highlight the NAIC’s legislative agenda, discuss the impact of policy initiatives in the states and brief lawmakers on international insurance regulatory developments.

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2015:  Another Record Year for Delaware’s Captive Insurance Growth

Commissioner Stewart Lauds Captive Bureau’s Performance

DOVER, DE –Insurance Commissioner Karen Weldin Stewart today announced another record year of captive insurance formations in Delaware.  In 2015, Delaware licensed 74 pure captive insurers, 3 special purpose captive insurers, and 112 series captive insurers, for a total of 189 captive entities.  “The growth of Delaware’s captive insurance program reflects the fact that Delaware is a business-friendly environment that applies a firm but fair method of regulation,” said Stewart.

As of December 31, 2015, the number of active captive insurers of all types in Delaware is 1,060.  That total consists of 242 pure captive insurers, 740 series captive insurers, 45 special purpose captive insurers, 5 special purpose financial captive insurers, 1 agency captive insurer, 2 industrial insured captive insurers, 2 association captive insurers, and 3 sponsored captive insurers.  When Commissioner Stewart formed the captive bureau in July 2009, Delaware had only licensed 38 captive insurers.  Delaware’s first captive insurance company was licensed in the 1980s and since then the First State has issued 1,279 captive insurance company certificates of authority.

“I continue to be pleased with the growth of the captive insurance program.  This program continues to provide economic opportunities for my constituents and much-needed revenue for the state” said Stewart.

In 2015, Delaware amended its captive insurance laws to codify the licensing of series, which included creation of a new type of captive insurer – a series captive insurance company. This change in the law has resulted in a significant increase in the total number of captive insurance companies in Delaware.

Delaware pioneered the licensing of series as captive insurers in 2010.  Series are sometimes incorrectly confused with protected cells.  The difference between a protected cell and a series is that a protected cell is typically a financial account instead of a business organization and, as a creation of a state’s captive insurance laws, lacks the features of a separate legal person.  In contrast, a series is the creation of Delaware’s business organization laws and has many features of a separate legal person.  Series are primarily formed pursuant to the Delaware Limited Liability Company Act.  Unless the governing document provides otherwise, a series of a Delaware limited liability company has the power and capacity, in its own name, to contract, hold title to assets, including real, personal, and intangible property, grant liens and security interests, and sue and be sued.  Because a series is a form of business organization, Delaware law now provides it the opportunity to obtain its own certificate of authority as a captive insurance company.  For example, a series can be licensed in Delaware as a series captive insurance company or as any other type of captive insurance company including a special purpose captive insurance company.  Stewart added, “When I pioneered the use of the series as a captive insurer, I did so with the goal of maximizing flexibility in the use of Delaware business organizations as risk bearing and transfer vehicles.  I am delighted that the captive insurance industry has so readily accepted the series as a captive insurance company.”

Captive insurance companies are owned by the entities that they insure, and are formed by businesses who wish to better manage the cost and administration of their own risk. Today Delaware is the world’s sixth largest and the country’s third largest captive domicile.  Delaware’s sophisticated corporate laws, financial infrastructure and respected judiciary make it the preeminent jurisdiction for business. These benefits are extended to captive insurance companies through Delaware’s Bureau of Captive and Financial Insurance Products.

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Delaware’s Kinion Named One of the Top Four Influential Figures in Global Captive Insurance

Commissioner Stewart Lauds Captive Division’s Success

DOVER, DE  – Insurance Commissioner Karen Weldin Stewart is pleased to announce that Steve Kinion, Director of the Delaware Insurance Department’s Bureau of Captive and Financial Insurance Products, has been named as one of the four most influential people in the captive insurance industry.  The February 2016 issue of Captive Review magazine lists Kinion as number four on its global list of the “Power 50 in 2015” list. Kinion was also in the top four in 2014.

“The recognition of Steve for two consecutive years is further evidence of the continuing success of Delaware’s captive insurance program,” said Commissioner Stewart. “The people of Delaware thank Steve and his team for creating an environment that fosters sophisticated alternative risk transactions.”

Announcing the 2015 rankings, Captive Review observed: “A true warrior of the industry and unafraid to make his voice heard, Kinion can be relied upon to spot any legislative or NAIC [National Association of Insurance Commissioners] action that could compromise the position of strength of captives in America’s booming captive sector.”

Captive Review also recently named Commissioner Stewart to its first Enterprise Risk Captive Pioneers list.

Captive insurance is a form of self-insurance.  Captive insurance companies are owned by entities who wish to better manage the cost and administration of their own risks. In 2005, Delaware updated its laws regarding the formation of captives, thereby positioning the state to become a preferred domicile to the growing number of captive insurance companies being created by companies worldwide.  Today Delaware is the third largest captive domicile in the U.S. and the world’s sixth largest.  Delaware’s sophisticated corporate laws, financial infrastructure and respected judiciary make it the preeminent jurisdiction for business. These benefits extend to captive insurance companies through Delaware’s Bureau of Captive and Financial Insurance Products.

For more information, please visit http://captive.delawareinsurance.gov/

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Commissioner Karen Weldin Stewart Receives National Recognition as Insurance Pioneer

DOVER, DE – Influential trade publication Captive Review magazine has named Insurance Commissioner Karen Weldin Stewart to its first Enterprise Risk Captive Pioneers list, recognizing 20 of the “key influencers” in the United States’ smaller captive industry.

Captive Review said “Commissioner Stewart has been the driving force behind Delaware’s rapidly growing captive industry and has taken a strong interest in the facilitation of captives for small and medium-sized businesses.” These captive entities, known as Enterprise Risk Captives (ERCs), have played a significant role in Delaware’s captive growth. In July 2009, when Commissioner formed the Bureau of Captive and Financial Insurance Products, Delaware only had 38 captive insurers. In a little more than five years, Delaware became one of world’s preeminent captive insurance domiciles, in large part by providing ERCs a captive insurance domicile that has knowledgeable regulators and laws that encourage the formation of captive insurers.

“I’m honored to be included on this list of small captive insurance industry trailblazers,” said Commissioner Stewart. “When I first became Commissioner, I was determined to grow our captive program. Of course, my hard-working captive division staff has really gotten down in the trenches and worked with our ERCs to make sure they make use of all the advantages Delaware’s favorable business climate provides. And my captive director Steve Kinion especially has become a respected champion for small market captives.”

Captive insurance companies are owned by the entities they insure, and are formed by businesses who wish to manage more efficiently the cost and administration of their own risk. Delaware updated its laws regarding the formation of captives in 2005, and consequently became a preferred domicile for the growing number of captive insurance companies being created by companies worldwide.  Today Delaware is the world’s sixth largest and the third largest U.S. captive domicile.  Delaware’s sophisticated corporate laws, financial infrastructure and respected judiciary make it the preeminent jurisdiction for business. These benefits are extended to captive insurance companies through Delaware’s Bureau of Captive and Financial Insurance

For more information, please visit captive.delawareinsurance.gov

The Captive Review article is here: captivereview.com/news/revealed-the-2015-captive-review-erc-pioneers

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Governor Markell Recognizes DOI’s Licensing of 1000th Captive Insurance Company

Governor Markell Recognizes DOI’s Licensing of 1000th Captive Insurance Company

Commissioner Karen Weldin Stewart Achieves a Long-Time Goal

DOVER, DE – Governor Jack Markell presented Insurance Commissioner Karen Weldin Stewart with a proclamation today recognizing the Department of Insurance’s licensing of its 1,000 captive insurance company, AWI, Inc. of Voorhees, New Jersey.

 

The proclamation recognizes Delaware as one of the foremost captive domiciles in the world, currently the sixth largest globally and the third largest nationwide. DOI’s captive bureau is self-sustaining and currently contributes an annual surplus of tax and fee revenue of over $3 million to the Delaware general fund. Captive insurance entities are owned by the companies that they insure, and are generally formed by businesses who wish to better manage the cost and administration of their insurance coverage.

 

“When I took office in 2009, Delaware was home to only 38 captive insurance companies, I immediately saw the revenue potential for growing our captive insurance business,” said Commissioner Stewart. “I promptly formed the Bureau of Captive and Financial Insurance Products. Since then the bureau has generated more than $11 million in revenue.”

 

“I want to thank the Governor and the General Assembly for their continued cooperation in making Delaware a friendly place for corporations around the country and the world to do business,” said Stewart. “Of course Delaware’s unique Court of Chancery also deserves credit for establishing a stable and reliable legal environment in which captives can thrive.”

 

“In the future, I intend to reach out around the world to new markets for captive insurance and continue to increase the number of captive insurance entities domiciled in Delaware.”

 

AWI‘s parent company, American Water, was founded in 1886 and is the largest and most geographically diverse publicly traded water and wastewater utility company in the United States.

 

AWI will receive formal recognition as Delaware’s 1000th captive at the Delaware Captive Insurance Association Fall Forum on November 12 at the Chase Center on the Riverfront in Wilmington.

 

 

1000 Captive Commissioner Stewart and Gov Markell 11-9-2015 Cropped
Seated: Governor Markell.

Front Row: Deputy Insurance Commissioner Hardy Drane; Assistant Secretary of State Rick Geisenberger; Insurance Commissioner Karen Weldin Stewart; Senior Captive Analyst Rasa Zubielaite.

Back Row: Captive Director Assistant Mark Murowany; DOI Chief of Staff Paul Reynolds; Captive Bureau Director Steve Kinion; DOI Director of Communications Jerry Grant; Captive Office Manager Jamie Bafundo; Insurance Examiner Raciel Moratin.

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More information at http://captive.delawareinsurance.gov/

For more information:  Jerry Grant 302-674-7303

For more photos, go to https://www.flickr.com/photos/delawaregovernor/sets/72157660237905428