Ariz. DOI Licenses Ariz.’s First Captive Insurer

Arizona Director of Insurance Charles Cohen announced the issuance of Arizona’s first Captive Insurer License effective Aug. 20, 2002. It was issued to Triad Commercial Captive Insurance Company, owned by Grant Goodman. Triad will write commercial automobile, general liability and inland marine coverages for Rockland Materials and Stirling Bridge Cement, in both of which Goodman has controlling interest.

“I am confident Triad Commercial will be the kind of safe, sound, high quality captive insurance program that will typify Arizona captives. Grant Goodman is a successful, reputable entrepreneur with a commitment to doing business in Arizona, and I am pleased to issue his company the first license. I believe the fact that we have our first Arizona captive less than two months after the law took effect, and the seriousness of the other inquiries we have had, demonstrates that Arizona is well positioned to develop onto a significant captive domicile,” said Cohen.

Representative Ted Carpenter, the chairman of the Financial Institutions and Insurance Committee sponsored the Captive Insurers bill, (Laws 2001, HB 2116, Chapter 327). “The captive insurance program, in my opinion, helps make Arizona an attractive insurance market. The added requirements built into the legislation will promote Arizona as a viable domicile for captive insurers,” said Carpenter. “Businesses and professionals will find our captive program well suited to meet their insurance needs and competitive with other states who have captive insurance laws.”

“Our formation of Triad reflects the commitment to Arizona and creates and keeps more dollars in our economy. I am grateful that the Arizona legislature allows us to form this company, especially because we can now manage our business risk and benefit directly,” added Goodman.

Richard Marshall, Captive Insurance Administrator of the Department of Insurance, stated the Department has received numerous inquiries since the new Captive Insurer Law went into effect on July 1. Several prospects have visited the Department to discuss the possibility of establishing Arizona-based captive insurers.

He added, “Triad meets the criteria the Department is looking for, an excellent business plans, a strong commitment to risk management, assuming significant risk and being well capitalized.”

“The Arizona Department was incredibly helpful and proactive in working with us to accomplish the licensing effort. I am confident that Arizona will, in a very short time, be a major captive insurance jurisdiction attractive to any business seeking to set up a captive insurance venture,” said Mike Low of law firm Low and Childers, who represented Rockland Materials in its licensing application before the DOI.

Topics Carriers Arizona