Summer was hot, but that didn’t keep your association from working hard. AzCIA has planned some great events for the 2005/2006 year. We will be doing 2 "Road Shows" profiling Arizona as the best place to set up your captive. These are scheduled for October 4^th in California and November 1^st in Texas, with program details outlined further in this newsletter. Thanks to Mike Mead and Marty Ellis for spearheading this effort. An informational breakfast meeting is set for September 21st in Phoenix to reach out to our own community leaders and agents, making them aware that Arizona is the premier captive jurisdiction. Thanks to Yves Lapointe and Charla Smyser for making this happen.

ADOI Discusses Captive RRG Issues With Captive Industry

On August 30, 2005, Arizona Director of Insurance, Christina Urias, met with representatives of the Arizona captive industry and AzCIA to discuss financial regulation of captive RRGs. Director Urias noted that significant issues had been raised by recent GAO and NAIC inquiries regarding financial standards and regulatory practices applied to captive RRGs by those states that permit their formation. The ADOI was particularly interested in the industry`s opinions concerning application of the 10:1, surplus as regards policyholders to single risk, ratio to captive RRGs. A report from the GAO is imminent, and an NAIC task force is formulating recommendations for financial regulation standards to be applied to captive RRGs for accreditation purposes. Director Urias sought the industry`s input prior to the Fall NAIC meeting, which was subsequently cancelled due to Hurricane Katrina.

Announcing…..

Regulation of Captives: Who? Why? What Next?