New York State
Eric R. Dinallo Superintendent of Insurance 25 Beaver Street New York, N.Y. 10004
|ISSUED October/16/2007||FOR IMMEDIATE RELEASE|
RIVER PLACE II, LLC, FORMS CAPTIVE INSURER IN NEW YORK
Insurance Superintendent Eric R. Dinallo today announced that the New York State Insurance Department has licensed RP Captive Insurance Company, Inc. (RPIC), as a captive insurance company. RPIC will insure the risks of River Place II, LLC, a large residential real estate project in midtown being developed by Silverstein Properties.
“The Insurance Department welcomes RPIC and congratulates River Place II on taking advantage of all that New York offers to captive insurance companies,” Superintendent Dinallo said. “New York, the real estate capital of the world with its investment management talent and vibrant financial services industry, is the natural home for captives.”
Captives are created when a business or group of businesses form a corporation to insure or reinsure their own risk. These self-insurance vehicles frequently enable New York businesses to pay lower insurance premiums, tailor coverage to specific needs, access the reinsurance market to transfer risk and gain greater control over claims.
RP Captive Insurance Company, Inc., is the 42nd captive insurance company licensed to operate in New York State. It will insure TRIEA (Terrorism Risk Insurance Extension Act of 2005) losses and other lines of business on behalf of River Place II, LLC.
Captives were not permitted in New York prior to the 1997 signing of the Captive Law. Most had been headquartered in a small number of states or off-shore jurisdictions like Bermuda. Shortly after the law went into effect, the Insurance Department launched its Captive Group in order to encourage companies to establish alternate insurance programs such as captives in New York State.
Jody Wald, Captives Coordinator of the Department’s dedicated Captive Group, led the department’s handling of the licensing process.
The information necessary to become licensed as a captive is available by calling the New York State Insurance Department’s Captive Group toll-free at 1-866-NYS-CAPT (1-866-697-2278), or by visiting the group’s website, www.nycaptives.com. Companies can download the necessary application forms as well as a copy of the law from the site. The approval process for licensing a captive insurer often takes less than 30 days.
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