Legislation               Tennessee Captive Insurance Company Act of 
                          1978

Supervisory Jurisdiction  Commissioner of Insurance

Application to            Tennessee Department of Commerce and 
                          Insurance

Data includes             Parent company's annual statement, 
                          application for Certificate of Authority, 
                          Articles of Incorporation, business plan, 
                          by-laws, officers and directors, power of 
                          attorney, projected premium income, 
                          certificate of deposit evidencing 
                          capitalisation, organisational examination 
                          report, rating and policy form 
                          questionnaire

Reporting Requirements    Annual financial report

Restriction on Business   Personal lines are prohibited
                          Associated captive membership restricted by 
                          minimum criteria (eg. 25 employees)

Capitalisation            Pure captive           US $400,000 Capital
                                                 US $350,000 Surplus
                          Association captive    US $600,000 Capital
                                                 US $400,000 Surplus
                          Can be capitalised by letter of credit

Minimum Solvency          Net Premiums: capital and surplus must be 
                          no greater than 3:1

Fees                      US $500 application fee
                          US $100 annual statement fee
                          Reimbursement of examination expenses

Annual Costs              US $5,000 - pure captive
                          (credited against premium taxes)
                          US $10,000 - association captive
                          (credited against premium taxes)

Currency                  US dollars

Taxation                  1% of gross written premiums

Location                  USA, mainland

Administration            Developed infrastructure

For further information contact Jenny Hill tel: +44 (0) 171 488 8866, fax: +44 (0) 171 488 8968 or visit the Willis Corroon web site, at Click Contact Link , or enter a text search 'Willis Corroon' and 'Business Monitor'.