New Jersey has approved its first captive insurance company under the new law that became effective in May.
The Department of Insurance issued a certificate of authority, effective July 1, to the Prudential Insurance Co. of America to form a pure captive named Prudential New Jersey Captive Insurance Co. (NJCAP).
Prudential established NJCAP to manage risk in a portion of its life insurance and annuity policies. As a New Jersey based captive, NJCAP will have a New Jersey based management team and board of directors and will be subject to New Jersey captive insurance laws, regulation and oversight.
“It is fitting that Prudential, a Newark-based domestic insurer, charters the first captive insurer in New Jersey,” said Insurance Commissioner Tom Considine.
Captive insurance companies are insurance companies established with the specific objective of financing risks emanating from their parent group or groups. Previously New Jersey law did not allow captive insurance companies in the state.
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