The State of New Jersey’s Department of Banking and Insurance has recently approved its very first captive insurance company. The carrier was approved after a new New Jersey State law way passed in May 2011.
New Jersey’s Department of Insurance approved and issued a certificate of authority to Prudential Insurance Company of America on July 1, 2011. The authority grants Prudential to function as a pure captive carrier. The new company will be called Prudential New Jersey Captive Insurance Company or (NJCAP).
The reason Prudential established NJCAP is to control and manage the risk portion of both its New Jersey annuity and life insurance policy exposures. Since the new company is based in New Jersey, NJCAP will establish both a New Jersey management team and board of directors. The management team will closly monitor the New Jersey captive insurance laws and regulations.
It’s important to note that Captive insurance companies are different that Captive insurance agents which I have discussed in previous posts. Captive insurance companies have specific responsibilities. Their specific objective is financing risks generated from the parent group or groups. New Jersey’s Insurance law did not allow captive insurers to function in the state.
Prudential Insurance Company no longer markets Homeowners Insurance or Auto Insurance in New Jersey. A number of years ago, they sold their New Jersey Property & Casualty Books of Business. InsureDirect.com respresents the nations top 30 Insurance Carriers. Feel free to give us a call as see how much money you can save.