Mike Mead President, Constitution Insurance
As increasingly innovative approaches to captive entities become part of the US landscape, Constitution outlines its Delaware-based offering.
Constitution is a newly formed company located in Wilmington, Delaware. It is owned and operated by M.R. Mead & Company, Inc., a licensed agency in Chicago and the principal of Caitlin-Morgan Insurance Services of Carmel, Indiana, a licensed wholesaler and managing general agency. As such, it accepts business from approved retail agencies.
The structure of Constitution is that of a series LLC with independent entities beneath it, called series business units (SBUs). These entities can take any form, such as a C corporation, an S corporation, a limited liability company, a partnership, a trust, a department of a company or any other legally recognised structure. Under Delaware law, each unit and its assets and liabilities are separate from the actions of the other entities. There exists a legal ring fence to protect the assets of one SBU from creditors of another SBU.
Statutorily, the entity is formed under Delaware’s alternate corporate
laws and then licensed by the Department of Insurance. This is a complex process requiring knowledgeable professionals, but the Delaware regulators are prepared for the effort, and each new entity is formed quickly.
US Captive . April 2011 15
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