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OFFICIAL NEWSLETTER OF NCCIA

VOLUME 4; NUMBER 5
MAY 2018

RECENT NEWS

The N.C. General Assembly is Considering Legislation That Will Exempt "Foreign" Captive Insurance Companies From All State Taxes

SOUTHERN PINES……In a surprise move the N.C. General Assembly is considering legislation that, if approved, will exempt “foreign” captive insurance companies (those domiciled outside of North Carolina but within the US) from all state taxes. Currently, NC does not tax captives chartered in the other states that do business in or write coverage in NC. This is in contrast to states like Tennessee and Texas which impose a “procurement” tax on captives chartered outside their states, but insure risks for companies doing business in TN.

Initially, the exemption language was contained in Senate Bill 715, an omnibus catch-all of Revenue Law Changes conforming NC tax rules to the recent changes made by Congress in the TCJA (2017, amended 2018). However, in the last few days, these state tax law changes have been engrossed into and combined with the annual State Budget Changes for FY 2018-2019. This budget/ tax combo is contained in the Conference Committee Substitute for S.B. 99.

Specifically, the exemption language would prohibit the NC Department of Revenue (NCDOR) from taxing premiums earned, for example, by a captive domiciled outside of NC doing business and insuring a risk located in NC. The specific tax exemptions are for premium taxes, corporate income taxes, franchise taxes, privilege taxes and insurance regulatory charges imposed by NCDOI.

Since the original Captive Insurance Act was passed in 2013, it has been the stated policy of North Carolina and NCCIA to encourage both “foreign” captives and “alien” captives (those domiciled offshore) to re-domicile in NC. To further that end, NCCIA is considering whether to advocate for a “premium tax holiday” next year as an incentive to bring both on and off-shore captives into the state. This tax incentive would offset the one-time costs of redomiciling and could spur health care providers, banks and other organizations to move their captive insurance companies to North Carolina.

With the Legislature rushing to adjourn by June 15th, we will give you an update in the June, 2018 Newsletter. For questions on this pending proposal, contact Lane Brown, NCCIA VP for Govt. Affairs at 704-773-0008 or lane.brown@nccia.org.

Early Bird Registration Discount For the 2018  NCCIA Annual Conference Ends at Midnight This Friday, June 1st

REGISTER FOR THE 2018 ANNUAL CONFERENCE NOW

Midnight Friday June 1st the “early bird” registration period for the NCCIA 2018 Annual Conference ends. This year’s event has moved to uptown Charlotte’s LeMeridien Hotel August 20-22. Approximately 200 captive insurance professionals from across the country will gather for two and a half days of continuing education and networking. Continuing education credits will be available for CPA’s and attorneys.

The conference kicks off on Monday the 20th with a new course for our golf tournament and a scramble format. The opening plenary session features Lt Col. Quincey Collins a Vietnam veteran who spent two years sharing a cell in the Hanoi Hilton with now US Senator John McCain.

We are also happy to welcome NC Insurance Commissioner Mike Causey who will share his thoughts on the state of the captive industry in North Carolina at the annual Commissioner’s Luncheon on Tuesday. (Click here to register)

NCCIA Board Of Directors Elects New Officers In Addition to Two New Members

At a meeting on May 4th the Board of Directors elected new officers for the remainder of 2018 and 2019 as well as two new members to the Board.

Elected as officers were Leon Rives of Rives and Associates as Chairman; Dan Reppert of Financial Risk Analysts as Vice Chairman; Mickey Payseur of Butler and Stowe as Secretary and Lea Riddle of BB&T Insurance Services as Treasurer. Newly elected to the Board were Lea Riddle and Wesley Deaton of the Deaton Law Firm.

PEOPLE & COMPANIES

Adam Forstot, A Frequent Presenter at NCCIA Events Has Joined Artex Risk Solutions

Adam Forstot a frequent presenter at NCCIA events has joined Artex Risk Solutions, a NCCIA member, as vice president of business development, effective immediately.

Forstot will be responsible for the marketing and development of new captives and alternative risk programs for property, as well as casualty and employee benefits.

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