(Southern Pines)…… On Thursday afternoon May 2, the North Carolina House of Representatives joined the State Senate to pass SB 347, Amendments to the Captive Insurance Act. The House action now sends the bill to Governor Roy Cooper (D) for signature. The Governor’s Office has indicated to NCCIA the Governor will likely sign the legislation shortly. The legislation had strong bipartisan support with no member of the legislature opposing the bill’s provisions. Representative Chris Humphrey (R) Lenoir, Chair of the House Insurance Committee, shepherded the legislation through the House.
The legislation makes a number of technical amendments to the Captive Insurance Act. Chief among the changes is a provision that will strongly encourage captive companies to redomesticate to North Carolina. The provision, requested by the NC Department of Insurance and supported by NCCIA is especially directed toward North Carolina based companies that had established captives and domiciled them elsewhere prior to 2013 when the Captive Act was first enacted.
NCCIA Board Chair Diana Hardy said, “It is gratifying that the legislature has recognized the role that captive insurance companies play in encouraging economic development in North Carolina.'' She continued “with over 600 captive entities, premiums in excess of one billion and producing tax revenues of over two million dollars, the captive industry has been a success that exceeded our original expectations. We believe that with this new ability to encourage redomestications through use of a premium tax holiday, the domicile is poised for growth.”
To find out how to redomesticate your captive to North Carolina call Lori Gorman at the NC Department of Insurance 910 807.6165
To see a copy of SB 347 go to the following URL: https://www.ncleg.gov/BillLookUp/2021/S%20347
Tom Adams, President & CEO of NCCIA told the Newsletter that “Due to technical problems with compliance with a continuing resolution under which the General Assembly is operating we will need a technical resolution to extend the premium tax holiday, so that it will be in effect for the full two year period that was envisioned in SB 347. Continuing, I do not anticipate that being a problem and the good news is the tax provision will begin as soon as SB 347 is signed by Governor Cooper.”