The Illinois legislature has voted to override governor Bruce Rauner’s amendatory veto of SB 1737, which proposes a reform of the state’s captive insurance regulatory framework and a substantial drop in self-procurement tax.
The Illinois House voted to overturn the veto by an 89-20-1 majority on 27 November, following the Senate’s unanimous vote to overturn it on 22 November.
Despite supporting the proposed updates to the captive regulatory structure, the governor vetoed the bill in August due to the “concerning” regulatory barriers the legislation imposed on short-term limited-duration health plans and workers’ compensation insurance.
SB 1737 was originally passed by the Illinois General Assembly on 31 May and will see Illinois follow in the footsteps of domiciles like Vermont, Hawaii, and South Carolina, in providing a substantially improved environment for companies looking for captive solutions.
Additionally, the bill will substantially drop the premium tax rate of self-procured insurance from 3.5 percent to 0.5 percent of gross premium.
