A Captivating Idea.What if captive insurance Captive insurance companies are limited purpose insurance companies established with the specific objective of financing risks emanating from their parent group or groups, they sometimes also insure risks of the parent company's customers. companies could be domiciled dom·i·cile n. 1. A residence; a home. 2. One's legal residence. v. dom·i·ciled, dom·i·cil·ing, dom·i·ciles v.tr. 1. anywhere in the country? Would Vermont remain the top captive domicile domicile (dŏm`əsīl'), one's legal residence. This may or may not be the place where one actually resides at any one time. The domicile is the permanent home to which one is presumed to have the intention of returning whenever the purpose in the land? The answers to these questions may not be far off, as more and more states are adopting captive-friendly legislation to lure the growing alternative-risk market. (See "Courting Captives," page 26.) States want a piece of the multibillion-dollar captives industry because it generates tax revenue and is nonpolluting and noninvasive. South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. became a captive domicile in June and will have a dozen captives signed up after a year. The Palmetto palmetto or cabbage palmetto Tree (Sabal palmetto) of the palm family, occurring in the southeastern U.S. and the West Indies. Commonly grown for shade and as ornamentals along avenues, palmettos grow to about 80 ft (24 m) tall and have fan-shaped leaves. State's aggressive approach to attracting captives puts it in direct competition with Vermont and any other state that seeks to dominate the market. Two of South Carolina's captives have redomesticated from Vermont and Hawaii, the top two domiciles in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . "South Carolina is willing to listen to almost any alternative risk-transfer idea," said Christine A. Mancini, chief executive officer of Captive.com. "I think they want to go more head to head with these other popular domiciles." Vermont remains the undisputed U.S. leader with 489 licensed captives. Hawaii is second with 74. Seventeen states, the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). and the U.S. Virgin Islands have captive legislation on the books. Montana and other states are working on captive laws. "It just seems like every time you turn around there's a new one that's coming on board," Mancini said. To attract captives, states are emphasizing their liberal captives legislation, including favorable tax structures and strong administrative support. States that are popular tourist destinations sometimes have an edge, because the captives must hold annual meetings in the domicile state. "My understanding is that a lot of these captives look at a domicile as, "Where do we want to go to meet and have a good time? South Carolina is a threat [to competing states], because of golfing," Mancini said. If states continue to create captive domiciles, it could give new meaning to the term "alternative market." David Hilgen is editor. |
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