Georgia has passed legislation that amends the state’s captive insurance statute and authorises the use of protected cell companies.
HB 99 was passed by the Georgia legislature on the legislative day 40, the last day of the legislative session.
SB 192, which regarded captives, was tabled in the Senate and did not cross over, however, the language was pulled and the substance of the bill was added to HB 99.
The key alteration is the introduction of “incorporated protected cell” captives to the statute, which Georgia defines as “a protected cell that is established as a stock corporation or manager-managed limited liability company separate from the sponsored captive insurance company of which it is a part”.
Additionally, HB 99 includes new rules for dormant captive insurance companies, captives that have “ceased transacting the business of insurance, including the issuance of insurance policies” and have “no remaining liabilities associated with insurance business transactions, of insurance policies issued prior to the filing of its application for a certificate of dormancy pursuant to this chapter”.
According to the bill, dormant captives must possess and maintain minimum capital of $25,000, submit a financial condition report on or before 1 March each year, and renew its certificate of dormancy every five years.
Insurance commissioner Jim Beck commented: “Georgia has a tremendous reputation as a great state to do business and we want to capitalise on the momentum to make it easier to form a captive insurance company and innovate in the marketplace.”
