Burlington Coat Factory creates captive insurer for employee health plan

Burlington Coat Factory has launched Florence Insurance Co. to manage risks associated with the self-funded health care plan for its 37,000 employees, including 4,900 in New Jersey.Burlington Coat Factory has launched Florence Insurance Co. to manage risks associated with the self-funded health care plan for its 37,000 employees, including 4,900 in New Jersey.

Florence is a captive insurance company, or one created by a parent company with a self-insured health care program to mitigate risk. The states acting banking and insurance commissioner, Marlene Caride, recently approved its creation by Burlington Coat Factory, a discount clothing company based in Burlington.

Former Gov. Chris Christie signed a bill into law in 2011 allowing the formation of captive insurance companies. Since then, the station has approved the creation of 25 captive insurance companies. Copyright 201 BridgeTower Media. All Rights Reserved.

CREDIT: Vince Calio