Bill Summary for S 319 (2023-2024)

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Summary date: 

Mar 16 2023

Bill Information:

View NCGA Bill Details2023-2024 Session
Senate Bill 319 (Public) Filed Thursday, March 16, 2023
Intro. by Johnson, Perry, Sawrey.

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Bill summary

Amends GS 58-22-15 (pertaining to risk retention groups chartered in the State) to enact new subsection authorizing the Insurance Commissioner (Commissioner) to examine any risk retention group when the Commissioner deems it reasonable and prudent. Requires the Commissioner to coordinate the exam with any other examining bodies to avoid repetition and to conduct the examination expeditiously and in line with the Examiner Handbook of the National Association of Insurance Commissioners (NAIC). Stipulates that the examination costs are the responsibility of the examined risk retention group.

Reduces the tax on premiums paid to risk retention groups not chartered in NC from 5% (the amount surplus lines insurance premiums are taxed under GS 58-21-85) to 1.85%.  Amends GS 105-228.4A(g) (pertaining to tax on captive insurance companies) to remove the requirement that a foreign captive insurance company redomesticate to North Carolina by December 31, 2022, in order to take advantage of the premium tax exemption for the year the redomestication occurs and the year after. Extends the expiration date of the tax exemption to taxable years beginning on or after January 1, 2025. (Currently, expires January 1, 2024.)

Effective October 1, 2023.