North Carolina is taking steps to improve its captive insurance legislation.
Amendments to the N.C. Captive Insurance Act, signed into law on 7 July 2014, is intended to make North Carolina more competitive with other captive states, provide additional flexibility to the insurance commissioner in the regulation of captives and allow for the formation of additional types of captives in the state.
"The captive insurance market in North Carolina has been growing rapidly since the state became a captive domicile in late 2013," commented the insurance commissioner Wayne Goodwin.
"I expect interest in captives to increase in the second half of 2014 with the improvements we've made to our captive legislation. Captive insurance provides businesses with new opportunities and benefits North Carolina's economy."
Under the amendments, special purpose captive insurance companies could be allowed to provide insurance or reinsurance or both for risks as approved by the commissioner.
The new entities will be required to hold an unimpaired paid-in capital and surplus of at least $250,000.
North Carolina enacted its captive-enabling legislation in October 2013 and has already licensed nine captive insurance companies and approved 20 captive managers to work with North Carolina-licensed entities.
The legislative improvements will be discussed by North Carolina Department of Insurance staff on 26 August at the first annual conference of the North Carolina Captive Insurance Association.
The full document, including amendments, can be found here.
