We are excited to report that Spring client, Sealed Air (www.sealedair.com), recently received approval by the U.S. Department of Labor (DOL) of their application to fund certain employee benefits in their captive. Spring had submitted the application to the DOL on behalf of Sealed Air.
Sealed Air was seeking to reinsure their life and accidental death and dismemberment coverage through their existing Vermont-based captive, Saddle Brook Insurance Company. Saddle Brook currently insures a number of Property and Casualty risks. Sealed Air had received preliminary approval back on February 22, 2015 to go forward with their plan to write the additional coverage in and final approval was given on April 29, 2015.
Sealed Air’s approval marks one of the first examples of a corporation utilizing the recently re-launched DOL expedited approval process (EXPRO), the process for gaining a prohibited transaction exemption from the DOL to fund employee benefits in a captive. With benefit captive approvals for Coca-Cola and Intel Corp occurring over the past few years, there were signs that EXPRO would soon return. The approvals of Sealed Air and others recently mark the return of this very important regulatory process.
“This approval marks a landmark moment for both Sealed Air and employers throughout the United States,” said Karin Landry who heads the Captive Insurance team at Spring. “The return of EXPRO will give employers the opportunity to offer the same cost savings, administrative efficiency and plan flexibility that Sealed Air will soon be enjoying without having to endure a prolonged regulatory process. ”
Thinking about how to take control over rising benefit costs and gain flexibility and efficiency in your plan offerings? Talk to our captive insurance experts. Karin Landry, Peter Bandarenko and their team of captive benefit professionals have experience unmatched in the industry and are ready to discuss your specific funding challenges and potential solutions.