North Carolina Legislature Ends Session without Passing Captive Bill

The North Carolina General Assembly ended this year's session without passing legislation that would extend the state's premium tax holiday for captive insurance companies that redomesticate to the state as well as other improvements to the state's captive law.

In its November newsletter, the North Carolina Captive Insurance Association (NCCIA) said the legislature will meet one day a month between now and April. While the legislation could be brought up during that period, it's "highly unlikely" that it will be, the NCCIA said. Instead, NCCIA lobbyists have indicated that the bill will be taken up in the legislature's short session when it reconvenes in April.

The North Carolina General Assembly conducts a regular "long" session, typically lasting several months in odd-numbered years, and a "short" session lasting from a few weeks to a few months in even-numbered years.

Under the original version of the captive measure, captives that redomesticate to North Carolina would be exempt from premium taxes until January 1, 2025. "NCCIA will need to amend the bill to push the effective end date for the premium tax holiday back a year," the NCCIA statement said.

The North Carolina captive bill also 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.