The North Carolina Captive Insurance Association's (NCCIA) captive revisions bill, known as SB 319, has been referred to the Rules Committee after receiving a favourable report from the House Insurance Committee.
According to the NCCIA, the Rules Committee must next decide when to send the bill to the North Carolina General Assembly for its second and third readings. Afterwards, SB 319 will return to the Senate for concurrence.
The measure came out after the House Insurance Committee amended the bill at the NCCIA’s request to extend the premium tax holiday to two years for captives that redomesticate in the state.
In addition, the amended legislation proposes changes to the retaliatory tax applied to risk retention groups (RRG), reducing the maximum rate language in the statute to 1.85 per cent.
The bill also clarifies that the commissioner may examine any RRG when he deems it prudent and reasonable, and that the costs of such examinations will be the responsibility of the examined RRG.
Tom Adams, NCCIA’s president and CEO, says: “Our lobbying team is doing a great job of moving the legislation forward.
“While the session is growing late, we have ample time to move SB 319 over the finish line to enactment.”
