Caitlin Morgan Captive Services is pleased to announce that we’ve recently been placed on the approved captive insurer management firm list for Utah-licensed captive insurance companies. Utah has over 500 captives, and is recognized as an innovative state, fostering and supporting creative solutions for captives. The growth in captives over the last decade in the state is due to Utah’s location, favorable legislation and business-friendly environment.
We are happy to be able to provide our services to companies looking to set up a captive domiciled in Utah. We provide end-to-end captive management solutions to assist companies in achieving greater control over risk and to improve profitability. This includes everything from providing insurance, risk management, and underwriting expertise to the captive; development and evaluation of business plans and preparation of financial statements; to managing captive service providers and vendors; producing financial reports for the captive’s board of directors; maintaining regulatory reporting; monitoring claims; and much more.
There are generally two types of captives in Utah: Pure and Group.
A Pure Captive or Single Captive is owned and controlled by one company and insures that company and/or its affiliates. You can also have a branch captive, which is an on-shore arm of an offshore captive. These are typically used to cover employee benefits under ERISA, which can only be offered by a U.S. insurer and can only write the business that a pure captive may write. A special purpose captive is owned or controlled by a parent company and may only insure the risk of its parent.
A Group Captive is a captive insurance company owned and controlled by two or more non-affiliated organizations insured by the captive. There are several types of group captives you can have in Utah, including Association Captives, Sponsored Captives, Industrial Insured Captives and Risk Retention Groups (RRGs).
In order for a captive to conduct business in the state as a Utah-domiciled captive, it must obtain from the commissioner a valid Certificate of Authority specifying the types of insurance authorized (i.e. complete the application licensing process); hold at least once each year a board of directors (managing members) meeting in Utah, or in the case of a reciprocal insurer, a subscriber’s advisory committee meeting; maintain the principal place of business of the captive in the State of Utah; appoint to the captive company’s board of directors (managing members) a resident of the State of Utah; appoint a resident registered agent to accept service of process and act on behalf of the captive in Utah; renew the Certificate of Authority annually by July 1 of each year; and comply with all other applicable statutes and rules.
If you would like to learn more about Caitlin Morgan’s captive management services, including whether a captive is good solution for your company, please contact us at (855) 975-4949.