How do you start a captive insurance company in Utah?

0:00HostWhat is a regulatory process like in Utah? If you could speak to someone that's at a third grade level, that doesn't really understand how to get a captive started or what their experts are going to need to do on their behalf to get the captive

0:16Travis Wegkampstarted. If

0:17Hostyou could walk us through start to finish

0:19Travis Wegkampwhat that looks like. So just to clarify, the regulatory process of starting a captive submitting an application is what we're talking about here. The real start is to get involved with what we call the captive manager. They're the ones that are going to take a look at your entity. It's risk profile and it's determined where there are some gaps that may be covered by a captive insurance company

0:48Travis Wegkampor where the current coverage is getting could better be served by having your own captive insurance company. That's the start is to find a captive manager. By all means, they can come to us and on our website, insurance.utaw.gov/captiv. We do have a list of captive managers that are approved to operate as such here in the state and represent a captive's license here in

1:17Travis WegkampUtah. So if you don't know where to start, you can go to that listing and maybe look and contact a few, see if there's somebody you want to work with there. And then, like I said, they'll dig into your company and your risk profile. They'll help you get started on the feasibility study, determining what kind of lines you should place in your captive and what the underwriting, the premium should be for those and the lines, the limits, all of that sort of stuff there

1:43Travis Wegkamp. And they'll develop that into a business plan that you'll submit to the state. And in Utah in particular, we have an online licensing application that anybody can access and take a look at and see what's in there. It requires those things like a business plan, feasibility study, biographical affidavits for the owners, the directors and the officers of the captive. Financial information for the parent company as well as the beneficial owners. And

2:11Travis Wegkampthen there'll be some legal documents that they'll need to take care of, submit articles of incorporation, the bylaws, things of that nature. And then they'll submit that to us. And we're pretty quick to dive in and get going on those applications. We'll review that submission and the lines of coverage and make sure that everything appears appropriate appears to be allowable per our state code for captives. We'll do that quick initial review. Usually

2:41Travis Wegkamp, we like to say give us a month for the whole process, but that initial review, assuming there's no gaps or missing documents, we'll typically have that reviewed within a week and we'll issue what's called the certificate of public good. And then once you have that, you can then go take that to the Department of Commerce and file your articles and get those

3:04Travis Wegkampsubmitted and become an actual legal entity and set up your bank account, pay your fees for forming the licensing fees, the application fees. So once we actually do that, issue that certificate of public good, the ball is really back in the court of the application, the applicant at how quickly they want to take care and execute all those documents, pay those fees, set up the bank accounts with the minimum amounts required, all that sort of stuff. So typically a month seems to be kind of the general length

3:35Travis Wegkampof a typical, pure, single parent, pure captive application here in Utah