Delaware Licenses First Serial Captive Insurance Company

by Leroy Baker, Tax-News.com, New York

28 January 2010

Delaware has licensed the world’s first serial entity captive.

Delaware is only one of seven states whose business laws allow the formation of serial limited liability companies or statutory trusts. Delaware also has a long and well-respected history of business law and permits the serialization of the captive entity to serve as a customized risk management solution.

Delaware’s laws allow each series to hold different liabilities and assets that permits “ring fencing” of the series. “A series captive entity provides greater flexibility and advantage than other traditional structures, including protected cell structures,” stated Insurance Commissioner Karen Weldin Stewart.

“Since my staff began informing the insurance industry of the opportunity offered by Delaware of serial entities as an alternative risk solution less than six months ago, my office has had numerous inquiries about how a captive can be formed under Delaware law,” said Stewart.

Strategic Risk Solutions (SRS) will serve as the captive manager. Derick White, a principal with SRS and president of its Vermont office, said: “Despite the fact that the application for the new serial entity captive was not submitted until mid-December, Delaware’s captive team quickly understood the program and diligently completed its review.”

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