NAIC Active on Captives and Special Purpose Vehicles Initiative

[Editor's note: This article was originally published in ReinsuranceFocus.com, and does not constitute legal or other professional advice or service by Jorden Burt LLP and/or its attorneys. John Pitblado is an associate with Jorden Burt LLP at the firm's Simsbury, Conn. office.]

The number of captive insurance companies and special purpose vehicles used as alternative risk transfer mechanisms has increased over time, as have the types of risks transferred to captives and the volume of such transfers. Many transactions with captives have been submitted to and approved by the governing state insurance department, and an increasing number of states have …