“Recent Developments Regarding the Use of Captives and Special Purpose Vehicles”
On October 17th, 2012, the National Association of Insurance Commissioners’ (“NAIC”) Captive and Special Purpose Vehicle Use (E) Subgroup (the “Subgroup”) of the Financial Condition (E) Committee met via teleconference, during which it publicly discussed, for the first time since the NAIC’s Summer National Meeting, its white paper entitled Captives and Special Purpose Vehicles (the “White Paper”).
As noted in the Stroock Special Bulletin dated August 27, 2012, the White Paper stems from the Subgroup’s study, in all 50 states and the District of Columbia, of (1) commercial insurers domiciled in each jurisdiction that transfer risk to captives or special purpose vehicles and (2) captives or special purpose vehicles licensed in each U.S. jurisdiction that accept or cede third-party risk of commercial insurers.
At the end of its teleconference, the Subgroup adopted the “exposure draft” of the White Paper for a 30-day comment period, with the objective of adopting a final version during the NAIC’s Fall National Meeting in Washington, D.C. and forwarding it to the Financial Condition (E) Committee for parent committee adoption. Comments on the White Paper are due to Dan Daveline by close of business on November 16, 2012. The Subgroup’s meeting is currently scheduled to take place on Thursday, November 29th, 2012 at 11:30 a.m.
This Stroock Special Bulletin sets forth the points the Subgroup highlighted during its teleconference.