ARKANSAS LANDS CAPTIVE

American Management Corporation (AMC), an insurance agency in Conway, has formed Arkansas’s first captive insurer, AMC Re. Arkansas State Insurance Commissioner Mike Pickens said the new company will reinsure risks written or placed by its parent company, AMC. Due to the hardening insurance market, more businesses are turning to captive companies to fulfill insurance coverage needs. The Arkansas General Assembly passed in 2001 Act 1428, which provides for the licensing and regulation of captive insurance companies. The captive law allows for several captive options. It also requires portions of captive company assets to be reinvested in bonds and securities. Those investments would be used by the State or local community to support hospitals, and other improvement projects. Pickens said his department is “excited about the development of this new company.”