Recent updates to Tennessee’s captive legislation have strengthened its captive market, according to the Tennessee Captive Insurance Association (TCIA).
The legislation, approved in April by governor Bill Haslam, represents the third update to the revised Tennessee Captive Insurance Act of 2011.
Since the update was signed into law, Tennessee now has 133 captive insurance companies and 321 cell companies, for a total of 454 risk-bearing entities.
Michael Corbett, director of the captive insurance section for Tennessee, commented: “The captive insurance industry operates in a competitive, fast moving environment that demands competitors keep pace or be left behind.”
“Tennessee must be nimble and forward-looking if we are going to surpass the goals we’ve established and continue our unprecedented growth. I’m grateful for the foresight that governor Bill Haslam and commissioner Julie Mix McPeak have shown by supporting these changes in the legislation.”
The 2016 legislation updates included a new way for captives to redomesticate to the state. Captives redomesticating from offshore to Tennessee are now eligible to forego paying premium taxes in either the first or second year of their operation, providing they commit to staying for five years or pay back the foregone premium tax with interest.
Changes also included updates to the protected cell law and self-procurement tax.
TCIA’s chairman and president Kevin Doherty added: “With this legislation in place, if you are a Tennessee business there is now no reason to have your captive based anywhere else.”
