Captive Formation
& Management

Our experience and capabilities allow us to immediately undertake the process of forming a new captive.

We establish timeframes, set expectations, and clarify objectives before we commence any of the actionable tasks.

Helio manages many captive insurance companies, and we maintain a very strong and collaborative relationship with regulators. We coordinate all activities involved with project management in forming the captive, and we work collaboratively with your leadership and consultants to ensure proper corporate and regulatory approvals are received in a timely fashion.

The captive application includes several supporting documents such as a plan of operations, actuarial analysis of projected insurance liabilities and premium funding, biographical affidavits for appointed Officers and Directors, pro forma financial statements, and a copy of any proposed investment policy. We assume responsibility for a smooth and timely licensing process so that your time commitment is reduced.

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Below are details required for the application and approval steps within the Captive Licensing Process.

1. Business Plan

Corporate

Captive Name
Directors & Officers (Bios)
Domicile Meeting (Virtual)
Proposed Service Providers

Financial

Tax Position, Capitalization, Premium
Proforma F5

Internal Approvals

Tax, Legal, Auditor, Treasury
Shareholder & Board Consents
Establish Investment Policy

Prepare/Review Legal Documents

Plan Exhibits/Policies
Prepare Business Plan Narrative

2. Application

Pre-Application Meeting

Review Business Plan of Captive
Discuss purpose, capital limits, premiums
Attendees

Pre-Application Licensing

EIN Obtained
Capital Contribution
License Issued
Pay License Fees
Board Organizational Meeting or Written Consent
Continue Operations

Application

Include Business Plan
30-Day Review by Regulators
Q&A
Approval Granted*

*May be subject to additional items

3. Approval

Post-Approval Operations

Issue Policies or Endorsements
Accept Premiums
Pay Losses
Review & Adopt Corporate Policies
(i.e. investment tax, etc.)

A summary of services we commonly provide to captive clients is outlined below, as well as additional services of value which we include in our fee proposal

1. Financial Reporting

Internal Financial Reporting

Prepare quarterly financial statements, supporting workpapers & maintenance of general ledger
Perform fluctuation analysis
Assist with preparation of budgets, forecasts and ad hoc reporting to the board and other key management
Coordinate with various departments for consolidation of captive results, if necessary
Respond and support internal audit requests
Maintain adequate internal controls and best-in-class procedures
Track and report underwriting performance by line of business and policy year

External Financial Reporting

Maintain financial records and provide support to audit & tax return preparers
Draft and review notes to audited financial statements
Coordinate annual rating process by independent rating agencies, if applicable

Cash Management

Maintain and reconcile banking and investment accounts
Arrange authorization of payment for claims and operation expenses
Process and reconcile premium receipts and reinsurance payments

2. Regulatory Compliance & Corporate Governance

Regulatory Filings

Prepare & file premium tax returns
Prepare & file statutory annual statement
Coordinate annual audit and actuarial review and file reports and certifications
Coordinate annual license renewal
Coordinate approval of changes to insurance business plan
Maintain current five-year financial projections
Continually monitor capital adequacy against industry benchmarks

Corporate Governance

Prepare & distribute materials for periodic and annual Board and shareholder meetings
Provide VT resident director and officer role, if requested
Provide key personnel with legislative and regulatory updates
Maintain status of regulatory filing requirements with relevant jurisdiction(s)
Assist in developing best-in-class policies and procedures

3. Insurance, Underwriting & Administrative Services

Insurance & Underwriting

Assist in drafting, preparing, and reviewing insurance policies & reinsurance agreements
Prepare premium invoices
Track premium receipts and payments
Track and report underwriting performance of policies
Respond to general queries on policy terms and coverage matters
Consult on program design and alternative uses of captives
Support stakeholders in analyzing information on coverage and claims experience
Assist in evaluation of appropriate level of reinsurance to optimize program structure

Administrative

Maintain all company records
Maintain home office & principal place of business
Act as Registered Agent for the entity, as needed
Assist with maintaining compliance with internal policies and procedures
Prepare and present ad hoc reports to management