5 May 2015Law & regulation

Delaware Captive Association backs SIIA legislation

The Delaware Captive Insurance Association (DCIA) has backed legislation aimed at increasing the premium cap on 831(b) captives.

The proposals, which are currently before the US Senate, were developed by the Self-Insurance Institute of America (SIIA) and will increase the premium cap to $2.2 million from $1.2 million.

The original proposal was sponsored by Senator Grassley, who after conversations with the SIAA, requested restrictive tighteners for the proposal. This request stemmed from concerns expressed by the IRS and the Treasury and the desire to deal with some perceived abuses of captives.

The DCIA has encouraged its members to help convince the Senate Finance Committee that the SIIA proposal is appropriate and has broad industry support.

“To that end, DCIA members are encouraged to communicate with members of the Senate Finance Committee, their respective Senators, even if not members of the Senate Finance Committee, and their State Departments of Insurance by writing a letter in support of the SIIA position and including the attached documents,” said the DCIA.