Recent modifications to the captive insurance law in Arkansas are “a positive move forward to support and grow” the industry in the state, according to Zachary Steadman and Jeffrey Thomas of law firm Mitchell Williams Selig Gates & Woodyard.
Arkansas governor Asa Hutchinson signed Act 370 into law earlier this year, making a host of changes to the state’s captive insurance law.
In their analysis of the changes, Steadman and Thomas pinpointed the introduction of incorporated protected cells, new flexibility in organisational structures, allowing mergers and conversions, the removal of fronting requirements for sponsored captives, and the option of a dormant status, as key changes.
“Act 370 helps Arkansas compete with other captive domiciles in an effort to create new captives or redomesticate captives to Arkansas that may have previously chosen a different state to form their captive insurance company,” they wrote in their analysis.
“Passage of Act 370 strengthens the existing benefits of owning and operating a captive insurance company. This is a positive move forward to support and grow the captive insurance industry in the state of Arkansas.”