Copy

OFFICIAL NEWSLETTER OF NCCIA

VOLUME 8 Number 5
June 2022

SB 347 Signed into Law - What does this mean for us?

(Southern Pines)……The summer heat returned to North Carolina in mid-June with temperatures across the state in the 90s. June also caused the General Assembly to focus on the remaining bills from the long session as well as a flurry of local legislation and the Budget adjustment for the second year of the biennium. All three historically are staples of short session activity.

As previously reported Governor Roy Cooper (D) has now signed SB 347, The Captive Practice Act Amendments Bill into law. The legislation has now become Session Law 2022-7. If you would like to read the new statute (click here).

North Carolina’s elected Commissioner of Insurance Mike Causey commented after the bill’s signing that “We are grateful to all parties involved in getting this law over the line.” Commissioner Causey continued, “Each of those who participated were committed to making North Carolina a great home for captive insurance companies. The time is right for those that want to be a part of the North Carolina captive program to make the move to our great state.” 

North Carolina is a relative newcomer to the captive insurance industry, when the N.C. General Assembly enacted the state’s captive insurance law in 2013. With passage of Senate Bill 347 and its technical corrections, companies that formed their captive insurance companies in other jurisdictions will have a strong incentive to consider moving them to North Carolina, a welcoming domicile for captive insurers.

The new law also includes a waiver of premium taxes for the year in which any captive insurer, whether onshore or offshore, moving its home base to North Carolina, as well as a waiver of the next year’s premium taxes. It is thought that the premium tax holiday will entice those captive owners to move their captives to North Carolina.

Additionally, the new law modifies the captive insurer audit exemption provision by granting the Commissioner the authority to consider captive insurers’ requests for an exemption from an audit when the cost would pose a financial hardship. Exemption requests from the annual audit and actuarial opinion requirement based on financial hardship will be considered by the Commissioner on a case-by-case basis.

Lori Gorman, Deputy Commissioner of NCDOI's Captive Insurance Division

Together, these two provisions provide for significant cost savings to those captive insurers and are expected to fuel continued growth for North Carolina’s captive insurance industry. Diana Hardy, NCCIA Chairman said that “Now is the time for captive managers, captive companies to contact the state to learn how easy the process is to redomesticate to North Carolina. Continuing, “There is a reason North Carolina has become the 4th largest domestic captive domicile in a very short period. Just contact Lori Gorman our Deputy Commissioner for captive insurance and find out why.” Lori and the Commissioner’s staff can be reached at 919.807.6165.

Alex Webb, NCCIA Committee of Government Affairs Chair

Improve the Domicile

The NCCIA Committee on Government Affairs, chaired by Alex Webb, has begun to review the NC Captive statute against changes occurring in the captive industry to see if there are additional enhancements needed to keep the domicile on the cutting edge of the industry. The committee is interested in hearing from association members who have suggestions for enhancement of the Act with your suggestions. Please send your suggestions to Alex at alex@webbmorton.com.

Are you in the Service Provider Directory?

Over the summer NCCIA will be transitioning to a new website host and updating the content available on the site. As part of that process, the Service Provider Directory on the site has been updated, according to association President, Tom Adams. Adams told the Newsletter, “The update of the provider directory was undertaken with information that was previously submitted to the association. We know that some of this information is old and outdated." Continuing Adams requested, “we encourage our members to review the information about your company and let us know what changes are needed or that you would like made.” If your company is not listed in the Service Provider Directory it does not mean we have not received your membership, it is because we have not received a submission for your company at the link below, so please fill out the form. Any artwork submitted should be high resolution such as “jpeg”. To submit your information please go to the following URL: https://nccia.org/service-provider-directory-submission-form/

Remember to Share This Newsletter With Your Colleagues
Share
Tweet
Forward
+1
Share
CALL 910.684.8379
Copyright © 2022 NCCIA, All rights reserved.


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