Approaching Deadlines for NJ Captive Insurance Companies

Have you recently formed a New Jersey-domiciled captive insurance company? If so, you should be aware of key upcoming filing deadlines in the state.

Captive Insurance Deadlines Due on or before June 30^th

• Audited financial statements
• Report of evaluation of internal controls
• Letter of accountant’s qualifications
• Statement of actuarial opinion

Audited Financial Statements

All New Jersey-domiciled captives are subject to an annual audit by an independent certified public accountant, registered with the New Jersey Department of Banking and Insurance (“NJ DOBI”) Commissioner. The audited financial statements can be issued on either the GAAP or statutory basis, however, the annual report (due March 1^st) is required to be on the GAAP basis unless prior approval has been received from NJ DOBI to issue them on the statutory basis.

Report of Evaluation of Internal Controls

Included in the submission of audited financial statements is a report of evaluation of internal controls. This report is also issued by the captive’s independent certified public accountant and includes commentary on any material weaknesses noted in the current year audit as well as commentary on any unremediated material weaknesses from the prior year audit.

Letter of Accountant’s Qualifications

Also included in the submission of audited financials is a letter of accountant’s qualifications issued by the captive’s independent certified public accountant. This letter will speak to your independent certified public accountant’s qualifications to perform the audit and certain other communications pertaining to the audited financial statements.

Statement of Actuarial Opinion

The statement of actuarial opinion is obtained from the captive’s actuary and contains the actuary’s evaluation of the adequacy of the captive’s reserves.

Each state has its own filing requirements and deadlines, so non-New Jersey-domiciled captives should review their state’s insurance department regulations regarding captives.

If you have any questions on captive insurance deadlines, please reach out to a member of Withum’s Insurance Services Group by filling out the form below.