Nevada Approves NV Energy Captive

[Jay]

Breaking News on Captive Insurance Companies from the Author of "Adkisson's Captive Insurance Companies" http://www.captiveinsurancecompanies.com and http://www.captiveforum.com
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Scott Kipper, Commissioner
Contact: Maria Dal Pan Dias
Phone: (775) 687- 4270, ext. 278
E-mail: mdias@doi.state.nv.us
FOR IMMEDIATE RELEASE -- December 21, 2009
Division of Insurance Approves NV Energy Captive
CARSON CITY, Nev. – Nevada Insurance Commissioner Scott Kipper has announced that NV Energy’s
application to form a captive insurer has been approved, giving the company the tools needed to better
manage risk and control its own insurance costs.
Captive insurance is a regulated form of self-insurance, in which the insurer is owned wholly by the
insureds. It is organized for the purpose of self-funding the owners' risks, and provides individual
companies or groups with coverages they need but can’t readily obtain through the traditional insurance
market.
“I’m very proud of what Nevada has been able to accomplish with its captive program, and I look forward
to continued success in making Nevada an alternate risk management center for the Western U.S.,”
Insurance Commissioner Kipper said. “With our consistent and responsive regulatory environment, it’s not
surprising that we have become a domicile of choice among captive insurers.”
NV Energy is just one success story among many for Nevada, which is the fourth largest domicile in the
U.S. for captive insurers. Currently, 125 active captive insurers call Nevada home, and the Division of
Insurance is on track to approve 14 more for the month of December.
This valuable sector of Nevada’s economy was responsible for generating more than $1 million of
premium tax and fee income for the state in 2009. This growing industry also is responsible for providing
non-gaming, non-polluting jobs for Nevadans, including actuaries, captive managers, consultants,
accountants, claims managers and financial advisors, as well as technical and legal support.
"NVEnergy is excited about the future of our Nevada domiciled Pure Captive and the numerous
commercial advantages NVE Insurance Co., Inc. will provide,” said Kirk Cresto, Director of Risk Control
for NVEnergy, Inc. and President of NVE Insurance Co., Inc. “Our Nevada Pure Captive is a powerful
resource that will provide flexibility, better claims management and lower overall cost of insurance
premiums."
Captives can suit a wide range of companies, from large, corporate structures forming pure captives to
smaller companies, which can align with similar businesses and participate in group, association or
sponsored captive programs.
Many types of companies have chosen Nevada as a domicile, such as small groups of health care
providers, family-owned manufacturing and agricultural companies, trade associations and multi-state
utility companies. The types of risks captive insurers underwrite include property damage, public and
product liability, professional indemnity, employee benefits, employer’s liability, motor and medical aid
expenses. Because of this versatility, captives are becoming an increasingly important component of the
risk management and risk financing strategy of many companies.
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[frieda]

This will change the way insurance companies work in Nevada. When there's more competition, premiums and approval procedures change. More competition will be better for the consumer, but not necessarily better for the insurance company's bottom line. It will interesting to see how noticeable these changes are.
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Frieda Johnson / Columbus, OH / Dental Insurance Plans / Insurance Guru