Steps to Form a Captive
Steps To Form a Captive
The process of forming a captive insurance company in Tennessee will generally involve the following steps:
- Call or email to arrange a meeting with the Director of Captive Insurance and staff to discuss the proposed captive and obtain initial reactions from the Department.
- Prepare documents necessary for corporate formation. Submit your formation documents to the Department for approval by the Commissioner. Once approved by the Commissioner, present the documents to the Secretary of State, along with appropriate fees and the Commissioner’s approval letter. Once filed with the Secretary of State, obtain a copy of the formation certification to submit with your application to the Department.
- Prepare documents necessary for application to the Department. Submit one original hard copy and one electronic copy of separate PDF documents of all materials to the Captive Section for review. Include a $675.00 application fee (additional fees may be required pursuant to the statute).
- Application materials may be assigned to an outside review firm if deemed necessary by the Commissioner.
- Once your application is approved by the Department, a Certificate of Authority Issuance fee of $440.00 is due.
- Select a Tennessee approved captive management firm, actuary firm, and CPA firm.
- If your captive manager is not currently approved, you may ask them complete the necessary form for approval as a captive management firm.
- If your actuary is not currently approved, you may ask them to submit the necessary form for authorization to render an opinion on reserves.
- If your CPA is not currently approved, you may ask them to submit the necessary form for authorization to perform audits.