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Article: Tennessee's lackadaisical approach. (A Guide to U.S. Captive Domiciles)
- Article from:
- Risk Management
- Article date:
- April 1, 1992
- Author:
CopyrightCOPYRIGHT 1992 Risk Management Society Publishing, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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TENNESSEE'S LACK OF enthusiasm in promoting captive formation appears to be working. Although the state has 21 captives--making it the third largest domestic domicile--it did not incorporate any new captives in 1991 and had no applications pending at the end of the year. Tennessee's luke-warm attitude toward captives may be rooted in the black eye the state received when one of its captives, which wrote pollution coverage for its parent, a marketer of petroleum products, went belly-up. The captive had certified that it had adequate reserves in the seventh quarter; but in the eighth quarter, an actuary found that the company was underreserved by between $28 million to $60 ...