Utah licences 100th captive
–30 April 2008
Utah has licences the state’s 100th captive insurance company, AFS Security Insurance Co. AFS, as a self-insured entity of Associated Food Stores Inc.
Commissioner of Insurance D. Kent Michie, Deputy Commissioner Neal T. Gooch, Utah Captive Director Donnie Spann and his staff, as well as service providers who have been instrumental in helping the state grow as a captive insurance domicile were on hand for the welcoming celebration in April.
In 2004, Utah had two captive companies, followed by 14 in 2005, 30 in 2006, and 92 in 2007. The Utah Captive Insurance Companies Act was passed in 2003 with additional changes being made during the following years in both rules and statutes. A big boost was the abolishment of premium taxes in 2005. The 2008 legislature amended the Act to provide for the creation of a Special Purpose Financial Captive Insurance Co. The amendment authorises the organisation and operation of a SPFC in Utah to facilitate risk securitisation transactions and other risk financing structures.
Commissioner Michie said: “Comparing the growth of the five states who rank ahead of Utah in number of captives, Utah's growth last year was nearly as many as the other five states put
together.”
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