A new captive insurance bill has been presented to the Senate in North Carolina.
The bill is sponsored by Republican senators Todd Johnson, Tom McInnis and Chuck Edwards, who are the co-chairs of the Commerce and Insurance Committee.
Debbie Walker, senior deputy commissioner of the captive division at North Carolina Department Of Insurance, said much of the bill addressed technical issues and clarified existing rules, rather than making significant changes to the current law. However, she highlighted two important changes the bill will make.
It includes a provision to raise the premium cap for protected cell captives with more than ten cells to $200,000, from $100,000 currently, aligning the treatment of larger cell structures with other captives.
It also offers captives that redomicile to North Carolina from elsewhere a two year premium tax holiday. This move was designed to attract large businesses based in North Carolina but with captives based elsewhere to bring them back to the state, said Walker.
Commissioner Mike Causey emphasised the importance of bringing captive business to the state. “Our captive insurance industry has created jobs and generated revenue for this state, and it is imperative to keep our already attractive laws on the leading-edge to continue to invigorate our captive insurance industry,” he said.
Thomas Adams, president and chief executive officer of the North Carolina Captive Insurance Association, said the legislation will now “proceed through the committee process with stops in both Commerce and Insurance and then on to the Finance Committee to deal with the tax issues contained in the bill, before proceeding to the floor for a vote. The legislation will then face a similar process in the House.”
While there is no specific date for the bill to become law, it is expected to be ready by the Summer.
North Carolina Department of Insurance, Debbie Walker, Mike Causey, Thomas Adams, North Carolina Captive Insurance Association