Richards Layton represents many of the large and sophisticated insurance companies domiciled in Delaware, including subsidiaries of global financial institutions, in matters before the Delaware Insurance Commissioner. We assist our clients with the full range of matters that come within the Commissioner’s regulatory authority, including:
Authoritative Regulatory Counsel
Richards Layton represents many of the large and sophisticated insurance companies domiciled in Delaware (including subsidiaries of global financial institutions) in matters before the Delaware Insurance Commissioner. We assist our clients with the full range of matters that come within the Commissioner’s regulatory authority, including:
The Delaware Insurance Commissioner is an elected position, and our knowledge of both the political and the regulatory environment in the state means that our clients receive the full benefit of our sound working relationship with the Commissioner’s office. The firm’s insurance team is comprised of directors who have played a lead role in creating legislation that spurred the state’s strong growth in special purpose financial captive insurers.
When combined with our knowledge of Delaware trust and special purpose entity law, our experience in these areas means that we can handle virtually any regulatory issue that arises for Delaware-domiciled insurers.
Asset-backed securities have been a major component of insurers’ capital market transactions, and Richards Layton applies our structured finance and alternative entity experience to help insurers develop and secure regulatory approval for these sophisticated investments. Our lawyers negotiate and structure investment transactions involving asset-backed derivative securities through the use of trusts and other investment vehicles. We are sensitive to the legal and regulatory constraints that financing activities and direct investments involve for insurers, and handle the details to create the maximum possible investment return.
Delaware Captive Insurers
Our insurance team was actively involved in drafting the Special Purpose Financial Captive Insurance Company and Branch Captive Insurance Company provisions of the Captive Act signed into law in 2007 and 2010, respectively. The special purpose provisions provided for the formation of special purpose financial captive insurance companies in Delaware, which are empowered to issue securities and otherwise access financial markets and alternative sources of capital through securitizations and other transactions. The branch provisions provided for licensing of agency and branch captive insurance companies.
Today Richards Layton is active in the Delaware Captive Insurance Association, including having a director serve on its board of directors and legislative committee. Our firm’s widely recognized experience and credible track record in developing innovative alternative entities for structured finance transactions make Richards Layton a natural choice to advise these captives on how to best take advantage of Delaware insurance and entity law.