Verizon unit gets OK as a captive insurer [NJBIZ (NJ)]

The state Department of Banking and Insurance has approved the fourth captive insurance company in the state.

A unit of Verizon Communications Inc., Exchange Indemnity Co.New Jersey, will provide liability insurance deductible coverage for Verizon subsidiaries, DOBI announced May 7. The insurer, based in Morristown, received certification from the state earlier this month.

Captive insurance companies finance insurable risks associated with their corporate parents. Until last year, when Gov. Chris Christie signed a law authorizing the formation of captives in New Jersey, companies established captive insurers in other states and countries.

It's the first captive approved this year. Previously, the state approved three captives, all last year: Ports Insurance Co. Inc., a unit of Ports America; Sequoia Insurance Co., formed for Bayonne Medical Center and Hoboken University Medical Center, both owned by HUMC Holdco; and Prudential New Jersey Captive Insurance Co., which insures policies for Prudential Insurance Co. of America. -KenTarbous