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Friday, 30 May 2014 19:40

Captive Insurance Company Formed in North Carolina

Insurance commissioner Wayne Goodwin announced that one of the nation's largest convenience store chains has formed a captive insurance company in North Carolina. A captive insurance company is formed for the purpose of providing insurance for the parent company and related entities. A “pure” captive insurance company exclusively insures the risks of its affiliates. More than 30 states have statutes that specifically authorize captive insurance companies to be organized under those laws. These statutes generally subject captive insurance companies to different regulations than traditional insurance carriers. The Pantry Inc., based in Cary, NC, has formed Cellarium Insurance Company Inc., a pure captive insurance company licensed by the North Carolina Department of Insurance on Febuary 28, 2014. This is the first captive insurer to become licensed in North Carolina in 2014, and the first in North Carolina to be owned by a publicly-traded corporation. Four other captive insurers have formed in North Carolina since the state's Captive Insurance Act went into effect in late October 2013.

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