2016 State of the Series LLC

Since Delaware licensed the first series LLC captive insurance company in 2010, series have been among the fastest growing and most popular forms of captives, with hundreds formed across several domiciles. Sponsors and users of series LLC structures are increasingly attracted to the flexibility, cost savings and administrative efficiency. In response to the demand for series structures, states have taken action. Some states have interpreted their statutes to allow the licensing of series while others have amended their statutes to expressly permit the licensing of series. Delaware updated its captive insurance statute in 2015 to formalise the licensing, taxation, reporting and governance of what it now calls a “series captive insurance company” (SCIC). And this year, North Carolina, a state whose LLC act does not allow for series, amended its captive statute to expressly allow licensing of entities formed in other states so that a foreign series LLC could be licensed in North Carolina as a special purpose captive.

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Author(s)

Andrew Rennick
Director
Gordon, Fournaris & Mammarella, P.A.
Daniel L. Fitzgerald
Associate
Gordon, Fournaris & Mammarella, P.A.
Jeffrey K. Simpson
Director
Gordon, Fournaris & Mammarella, P.A.