North Carolina Bill Would Extend Redomestication Premium Tax Exemption
March 31, 2023
Legislation recently introduced in North Carolina would extend a now expired 2-year exemption from state premium taxes for captive insurance companies that redomesticate to North Carolina.
Under the measure, SB 319, captives that redomesticate to the state would be exempt from premium taxes until January 1, 2025.
In addition, the measure makes clear that the state insurance commissioner can examine any risk retention group when the commissioner "deems it prudent and reasonable."
The costs of such an examination would be "the responsibility of the examined risk retention group" under the legislation.
The North Carolina Captive Insurance Association said the measure has been given a favorable report by the North Carolina Senate Commerce and Insurance Committee.
North Carolina is a major captive insurance domicile. At the end of 2022, 294 captives were domiciled in North Carolina. In 2021, which is the last year information was available, North Carolina captives generated $1.3 billion in gross written premiums.
March 31, 2023
