Tennessee Captive Insurance Director Announces Team and Policy Updates

In an update, the director of the Tennessee Department of Commerce & Insurance's Captive Insurance Section, Mark Wiedeman, announced recent team changes and policy updates.

Kent Ussery, a CPA with extensive experience in both public and corporate accounting, has joined the team. Mr. Ussery's expertise in financial analysis and regulatory compliance is expected to significantly enhance the department's operations.

New policies adopted from the most recent legislative session include the following.

• Payment of Third-Party Actuarial Reviews. Contract reviews of feasibility studies are required in specific circumstances, with costs covered by the company. Failure to pay can result in fines, penalties, or revocation. The certificate of authority or operational approval will be withheld until payment is confirmed. This policy applies even if the captive does not form after the initial review.
• Elimination of the Depository Agreement Requirement. The new policy removes the need for depository agreements for captive formations and existing companies, except for risk retention groups (RRGs), affecting both current and future applications. For new applications, banks must send confirmation of account setup and initial capitalization balance directly to the department. A request to cancel an existing depository agreement must be made in writing and approved by the department. Contact the department at [email protected] to obtain more details about the processes to follow.

The captive department said it will be participating at the Vermont Captive Conference in August, the Bermuda Captive Conference in September, and the SIIA National Conference also in September.

Agencies and companies can arrange in-person or virtual meet-and-greet sessions with the captive section by contacting Director of Business Development Michael Schulz at [email protected] or (615) 532–8382.