Beruflich Dokumente
Kultur Dokumente
Presented by:
Ross Elliott, Captive Insurance Director, Utah Department of Insurance Jeff Kehler, Program Manager, ARTS, SC Department of Insurance David Dimit, Executive Director, MO Captive Insurance Association Rod Morris, Sr. VP, R&Q Quest Management Services Austin, TX November 18, 2013
What Is a Captive?
Much depends upon whom you ask, and when A form of self-insurance in which the structure enables deductions for premiums and loss reserves Theoretically insuring the owner; not the public o, the owners balance sheet rules S
What Is a Captive?
A funding strategy for providing adequate assets to pay for potential claims Owned by an entity associated with an operating company and its affiliates Write policies for specific risks chosen by the operating company and the captive owners Important: Captives are not writing policies for the general public. As an insurer, they have a close relationship with, and operate in conjunction with, the insured
Texas Department of Insurance Captive Presentation 5
Types
S ingle parent (pure) Group/ association RRGs S egregated, protected cells
Regulatory Challenges
Do they have the money? Do they know what they are doing? Who are the players? Where (else) are they going to operate? NAIC challenges? ub rosa declinations S
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S ize
$200,000 to $1 billion Multiple states, foreign countries 46 of the Fortune 50 Most hospitals
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Taxes
There are tax advantages Must have a qualified tax adviser Taxes cant be the primary or only reason
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Regulation
Important in terms of flexibility The REGULATOR is the most important element in the transaction it is a people business
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Organizational chart of parents, subs and any other party along with their relationship to the captive Narrative & chart of all beneficial owners with percent of ownership and explanation of relationships
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tatements should be signed under Financial S oath by the president & secretary Determine the captives funding source & that it is unencumbered.
Texas Department of Insurance Captive Presentation 23
Funding is in proper form: cash or irrevocable LOC or TX bonds or bonds/ evidence of debt guaranteed by US G
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crutinize the Bio Affidavits for Directors, S Officers, & S ervice Providers for relevant expertise, standing, experience, potential conflicts, & inconsistencies.
Texas Department of Insurance Captive Presentation 25
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Ross Elliott, Captive Insurance Director, Utah Department of Insurance Jeff Kehler, Program Manager, ARTS ,S C Department of Insurance
2006
Captive Insurance Director hired
2007
63 captives licensed
2009
New Captive Insurance Director
Qualifications
FLMI MBA, MAcc, CFE (x2)
Our Responses
Adopt a technology focus
Embrace rocket science
Is the data exportable / extractable? Does the form meet reporting standards?
Monitoring
tep The First S
Ensure the correct arrangement before the certificate of authority is granted Owner, manager, providers, plan of operation, financials, business goals
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Analyst Tools
Annual Report Annual Assessment Actuarys Report & Opinion Auditors Report Company Profile Report
Texas Department of Insurance Captive Presentation 52
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Management Letter
Focus on changes or trends Compare to service requests & plan changes
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Corporate Governance
Biographical affidavits and background checks ignificant changes to key personnel S Turnover in parent causing turnover in captive
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CPA Report
Clean opinion or reason for concern? CPA report agrees with Annual Report? Concerns/ issues for follow-up
Texas Department of Insurance Captive Presentation 60
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Management Environment
Captive manager Involvement of owner
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ensitivities Planning S
Budget taffing S Time and timing
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