North Carolina Legislature Approves Captive Act Amendments

In its latest communication, the North Carolina Captive Insurance Association (NCCIA) said the North Carolina General Assembly has passed SB 319, Captive Act Amendments, and has sent it to the governor for signature. "Great news and work by the team. We keep moving forward as the domicile of choice," said Ron Adams, NCCIA board chair. The governor has 10 days to sign the bill, or it will become law without his signature.

The bill includes a provision extending the termination date for the redomestication provision, allowing captive insurers a full 2 years to relocate to North Carolina and receive a 2-year premium tax holiday. It also lowers the retaliatory tax rate to 1.85 percent, enhancing North Carolina's appeal for risk retention groups (RRGs). Read the legislation here.

Association CEO Tom Adams said, "Our win in the Senate by a 46–0 margin on the Third (Final) Reading is a major event for captives in North Carolina and the nation. We urge captives and captive managers to take a look at the domicile establishing an RRG here or if redomestication here might be right for them."

For more information, contact Lori Gorman, head of the NCDOI Captives Division, at (919) 807–6165, or the association at (910) 638–8272.