Delaware insurance commissioner Karen Weldin Stewart has provided guidance to make it easier for captive insurers to comply with new requirements within the federal Protecting Americans from Tax Hikes (PATH) Act.
The guidance, bulletin number six, provides procedures to help owners of captive insurance companies comply with the PATH Act’s new mandates for owning captives.
From 2017 the PATH Act will increase the annual premium to $2.2 million.
According to the Delaware Insurance Department, the act will create two new provisions.
The first is how much premium an insurer may gain from a single person, and the second is new ownership requirements for these insurers.
The new guidance provides two cost-efficient procedures that captive insurance company owners may follow in order to either change the ownership of an existing captive, or allow for the creation of a new captive.
Stewart commented: “I am very proud that my captive insurance staff has established guidance that responds to a change in federal tax laws.”
“Delaware’s captive insurance programme is known throughout the world as an advocate for the captive insurance industry. [The bulletin] once again affirms Delaware’s position by offering a timely and efficient regulatory option for captive insurance companies.”
