Copy

OFFICIAL NEWSLETTER OF NCCIA

VOLUME 6; NUMBER 2
February 2020

Special Message to the Captive Community in North Carolina From NCDOI

(Southern Pines, NC)….In a special message to North Carolina captive insurance companies, The NCDOI division of captive insurance companies issued the following statement:

Due to the spread of COVID-19, the employees of the North Carolina Department of Insurance, including the captive regulatory team of the Captive Insurance Companies Division (“CICD”), are now working remotely until such time that a return to the office is deemed appropriate.  Due to the technology already in place and the resources available to us, the CICD team will continue to address all of our regulatory responsibilities and deliver responsive customer service as usual throughout this time.  Captive insurers and their service providers may continue to utilize our Captive Online Filing system for the submission of new applications, new cell business plans, financial and actuarial filings, business plan amendment filings, and other information.   The CICD team will be checking office voicemails a few times daily; however, we will be able to provide even better service if requests are directed to us through email.  The email contact information for our entire team is available on our website at:

https://www.ncdoi.gov/insurance-industry/captive-insurance/captive-regulatory-team

Although our team is remotely located at this time and unable to have in-person meetings, we are available to have discussions with potential captive insurer owners, captive managers and service providers, and others in the general public.  We welcome requests for those discussions and are able to hold teleconferences to meet those requests. 

At this time we do not plan to waive any statutory or filing requirements to which North Carolina captive insurers are subject, with the exception that Kait Chase, Risk Retention Group Analysis Manager of CICD, explained in her email dated March 24, 2020, to North Carolina domestic risk retention groups, granting a waiver of the requirement for hard copy submissions of NAIC and state filings due on 4/1 (note that signatures are required but may be scanned images of originals or electronic signatures).  Further as Kait explained, at this time, a determination has not yet been made regarding the hard copy submissions due 5/15; however, CICD will continue to review the external circumstances and provide updates as the filing deadline approaches for domestic risk retention groups regarding hardcopy filings, as well as notarizations. 

As with any case when a captive insurer encounters a situation that may result in an inability to meet statutory requirements, the CICD team is available to consider individual issues that may develop as a result of COVID-19 on a case-by-case basis. 

CICD will be monitoring the impact of COVID-19 on the financial health of North Carolina licensed captive insurers. In the future, we may request special reports to assist us.  In the interim, please notify CICD as soon as possible, if a situation develops with a captive insurer that may impact its solvency or ability to meet its insurance obligations.   

If the CICD regulatory team can be of assistance to you in any way, please feel free to contact us.

https://www.ncdoi.gov/insurance-industry/captive-insurance/captive-regulatory-team

2020 NCCIA Annual Conference and Owners Forum August 30 through September 2

(Southern Pines, NC)….Spring is in full bloom in North Carolina and we were looking forward to welcoming everyone to the Annual Conference at the Washington Duke Inn in May. As you know the Board has made the decision to hold the conference with the Owners Forum on August 30th and the Conference , August 31 through September 2nd, due to the COVID 19 National Emergency. Here is what you need to know so far.

  • Early Bird Registration is extended until June 14th
  • If you had made a reservation for the original dates at the Washington Duke Inn, those reservations have been canceled. You now need to make reservations for the new dates using the www.nccia.org website  
  • If you were registered for the May conference dates your registration has been carried forward and you are now registered for the August-September dates and do not need to reregister with NCCIA
  • In the event the National Emergency has not been resolved in time for the Annual Conference to go forward in August you will receive a refund of the registration fee, so please do not let the virus stop you from registering for the conference or your hotel room. Cancellations for reasons other than the virus, the published fee will be charged.
  • There will be changes to the previously published program. For the latest version please look at the Conference schedule on the NCCIA website. The schedule will be updated periodically
NCCIA Board Chair Lea Riddle reminds us, “We are hopeful the new dates will allow for the NCCIA to hold its seventh Annual Conference in a safer environment.. Please continue to register and make plans to attend. The Early Bird rate is a good deal.”
REGISTER NOW

Progress Being Made On The Appeal Of The CIC Services Petition To The US Supreme Court

Although the wheels of justice turn slowly there is progress being made on the appeal of the CIC Services Petition to the US Supreme Court. On February 25, the Internal Revenue Service filed its opposition brief to the CIC Services Petition for discretionary review, known as a “Cert Petition.”  As anticipated, the government’s brief raised essentially the same issues it had argued before the Federal District Court in Tennessee and later in the 6th Circuit Court of Appeals. Anyone who would like to read this brief can find it at the Docket Search link for Supreme Court of the United States (Case No. 19-930). The case now goes to conference where the 9 justices, having reviewed all filings, including NCCIA’s Amicus Brief, filed jointly with other captive industry associations, will decide whether to take the case for full briefing and oral argument.  It only takes 4 of the 9 justices to agree to hear the CIC challenge. If four (4) Justice’s vote “yes”, it is most likely the high court will set the case for consideration at their Fall Term beginning in October. Meanwhile, it is up to CIC Services to decide whether to file a rebuttal to the IRS brief. We will keep our members informed of case developments.

NCGA Is Tentatively Scheduled To Return To Raleigh On April 28th

Presently, the North Carolina General Assembly is scheduled to return to Raleigh on April 28th. However, this is problematical in light of issues raised by the COVID19 National Emergency. Having 170 members in the Jones Street building at the same time increases the risk of virus infection, and violates an Emergency Order of Governor Cooper’s limiting the number of people in a room. However in spite of that order consideration is being given by the Governor and the legislative leadership to call a special one day legislative session to consider a State stimulus package. The changes to state laws is necessitated by the stimulus bill, approved by Congress on Friday and subsequently signed by President Trump.  State law involving unemployment benefits and the new Federal rules on sick leave among others need to be conformed to the Federal changes. This is a fluid situation for the special session which is changing by the day.  For updates, go to WRAL.com in Raleigh which is providing excellent coverage of these issues.
The staff of NCCIA will continue working from home during this trying time in world history. We pray that you and your families and loved ones stay safe during this National Emergency.
Remember to Share This Newsletter With Your Colleagues
Share
Tweet
Forward
+1
Share
Copyright © 2020 NCCIA, All rights reserved.


Want to change how you receive these emails?
You can
update your preferences or unsubscribe from this list.