Kasich Signs Bill Allowing Formation of Captive Insurers

Gov. John Kasich has signed into law a bill allowing the creation of captive insurance companies, or CICs, including entities that indemnify self-insuring employers. HB 117 would also allow for protected cell captive insurance companies, or PCICs, and special purpose financial captive insurance companies, or SPFCs.Under the law, any self-insuring employer indemnified by a CIC is required to pay a contribution to the Self-Insuring Employers’ Guaranty Fund, which is operated by the state Bureau of Workers’ Compensation. The fund covers defaults in compensation payments by e...