Captive Insurance Law Creates a New Industry in New Jersey
A legislation that creates a new industry in New Jersey is signed into law by Governor Christie. New Jersey, as of today, just like many other domestic and international locations, is a captive insurance domicile.
The law will enable the state of New Jersey to license, as well as regulate captive insurance companies. These particular companies pave the way for job creation, new tax revenues, and economic stimulus by setting up businesses providing services to the industry. In addition, the special insurance companies also give existing corporations new basis to conduct business in New Jersey.
Gregg Sgambati, the President of the New Jersey Captive Insurance Association (NJCIA) in a statement, said, “The association is happy to have been a catalyst for getting the legislation passed. But it was the foresight of the legislators to keep this legislation moving forward that provided the underlying momentum to create this path of industrial development for the state.”
Sgambati also said, “The legislative parity of this group makes it clear that this law will be good for New Jersey fiscally and economically.”
The leading and primary sponsors of the Bill were Assemblyman Gary Schaer, Assemblywoman Denise Coyle, Senator Nia Gill, and Senator Thomas Kean, Jr. on January 6th, the bill was passed by both Houses, along with bills dubbed “Back to Work NJ.”
“The fact that this bill passed the Governor’s litmus test along with its unanimous passage in both houses is a clear sign that we have an excellent economic opportunity for everyone here,” Sgambati said.
The newly signed law will go into effect after 90 days.