Senate committee substitute to the 1st edition makes the following changes.
Amends GS 58-10-390 which requires a captive insurance company's conflict of interest statement to disclose that the individual has no outside commitments, personal or otherwise, that would divert him or her from his or her duty to further the interests of the captive insurance company he or she represents, by specifying that this does not preclude the person from becoming a governing board member (was, a director) or officer in more than one company.
Makes clarifying changes to the application requirements under GS 58-10-565 to require the inclusion of specified information on governing board members.
Amends GS 105-228.4A to exclude a captive insurance company formed and licensed under the another state's laws from premium taxes (was, prorated premium taxes) for the year in which the redomestication occurs and the premium taxes imposed for the calendar year following the redomestication if the specified conditions are met. Specifies that an inactive captive insurance company is not subject to or liable for the payment of any tax under Article 8B of GS Chapter 105 for any full year the captive insurance company is inactive. Makes GS 58-10-496 (allowing the Commissioner may waive or modify any provision of this Part under certain conditions) is inapplicable unless the captive insurance company has been placed into supervision, receivership, or liquidation and the Commissioner has determined that the payment of the minimum tax under GS 105-228.4A(f) (setting out the total tax liability on captive insurance companies) will result in the captive insurance company's inability to meet its insurance obligations. Effective for premium taxes imposed for taxable years beginning on or after January 1, 2022.
Bill S 347 (2021-2022)Summary date: Apr 28 2021 - View summary
Bill S 347 (2021-2022)Summary date: Mar 24 2021 - View summary
Amends GS 58-10-375, concerning when a captive insurance company may pay dividends or other distribution; GS 58-10-395, concerning changes to a captive insurance company’s plan of operation; and GS 58-10-440, concerning requirements to be met when a captive insurance company or protected cell makes a loan or investment in an affiliate or participant, to make GS 58-10-345(f), making information confidential, applicable to information filed under these statutes.
Amends GS 58-10-415(c) to allow the Commissioner of Insurance (Commissioner) to grant an exemption from the statute (concerning annual audits and statement of actuarial opinion) if compliance would cause the insurer a financial or organizational hardship.
Amends GS 58-10-430 by allowing the Commissioner to conduct a financial analysis of information submitted to or obtained by the Commissioner and provides that the captive insurance company does not have to pay the expense of the analysis. Makes conforming changes.
Amends GS 58-10-340 by adding and defining governing board as it applies to captive insurance companies, as the board of directors or officials possessing similar authority. Amends various statutes to reflect this change, replacing references to "board of directors" with "governing board."
Amends GS 58-10-380 by requiring at least one member of the governing board be a state resident; removes requirements that were dependent on how the company was formed. Allows a captive insurance company’s organizational documents (was, articles of incorporation or bylaws) to authorize a quorum of its governing board to consist of no fewer than one-third of the fixed or prescribed number.
Amends GS 105-228.4A to exclude two or more protected cell captive insurance companies or special purpose captive insurance companies with a cell or series structure that are under common ownership from those that are taxed as single captive insurance companies. Amends GS 105-228.4A further to provide that the aggregate amount of tax payable under the statute by a special purpose captive insurance company with a cell or series structure with 10 or more cells or series may not be less than $10,000 and may not exceed the lesser of (1) $100,000 plus $5,000 multiplied by the number of cells or series over 10 and (2) $200,000. Effective for premium taxes imposed for taxable years beginning on or after January 1, 2022.
Amends GS 105-228.4A by adding an exemption from prorated premium taxes for the year in which the redomestication occurs and the premium taxes imposed for the calendar year following the redomestication if the specified conditions are met. Effective for premium taxes imposed for taxable years beginning on or after January 1, 2021, and expires for taxable years beginning on or after January 1, 2024.
Amends GS 58-10-360 to require all licensed captive insurance companies to be managed at all times by a manager approved by the Commissioner.
Amends GS 58-10-435 to also allow the suspension or revocation of a captive insurance company's license for (1) refusal or failure to submit an audit report or (2) failure to operate in accordance with the plan of operation approved by the Commissioner.
Amends GS 58-10-345 to prohibit captive insurance companies from providing fidelity and surety insurance for the purpose of becoming surety on or guaranteeing the performance of bail bonds.