Bill Summary for S 347 (2021-2022)

Summary date: 

Apr 28 2021

Bill Information:

View NCGA Bill Details2021
Senate Bill 347 (Public) Filed Wednesday, March 24, 2021
AN ACT AMENDING STATUTES RELATING TO CAPTIVE INSURANCE.
Intro. by Johnson, McInnis, Edwards.

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Bill summary

Senate committee substitute to the 1st edition makes the following changes.

Part IV.

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. 

Part V.

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.

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