Legislation in South Carolina that will update protected cell law and allow captive insurance companies to become dormant has passed the House of Representatives 87-0, and is now in the hands of the Senate Banking and Insurance Committee.
According to Derek Martisus, head of US insurance solutions at Performa, H3797 aims to make the state both friendlier to captive owners and also more desirable to cell captives.
“In an effort to make South Carolina a more captive-friendly domicile, the new legislation will allow captives to become dormant for a period of time and lower costs for captive owners during that period. Clearly, this aims to retain captives that may otherwise dissolve, in hopes that a use will be discovered for the captive in the future.”
“What some feel to be the most important aspect of the legislation pertains to cell captives. The legislation would permit cells to be either incorporated or unincorporated. While perhaps a little uninteresting to those not involved in cell captives, it will immediately put South Carolina in the mix for protected cell captive formations.”
Jeff Kehler, programme manager at the South Carolina Department of Insurance said that the sweeping revisions to the state’s protected cell legislation would give South Carolina “the best protected cell legislation available”.
