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Article: U.S. Creates More Captive Domiciles, But Will All Survive?(Brief Article)
- Article from:
- National Underwriter Property & Casualty-Risk & Benefits Management
- Article date:
- March 12, 2001
- Author:
CopyrightCOPYRIGHT 2001 The National Underwriter Company. 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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Could the success enjoyed by U.S. captive domiciles be the very thing that hurts them in the long run? That's what some experts are wondering as more and more states approve legislation allowing captive insurers.
Since Colorado passed a special insurance law in 1972, 16 more states, the District of Columbia and two territories--the U.S. Virgin Islands and Guam--have all passed enabling legislation. Vermont, the leading U.S. domicile with 361 captives, passed captive legislation in 1981.
"The captive market is too good in terms of people's view of it as an economic engine," said Michael B. Evans, senior vice president and chief risk officer of Sutter ...