The NC Captive Insurance Act was updated effective June 30, 2016. The updated legislation made five significant changes:
- A NC captive is now exempt from the annual in-state board meeting requirement if the captive uses the services of at least 2 NC service providers (legal, accounting, actuarial, investment advisor, captive manager, or other service providers acceptable to the NC Insurance Commissioner);
- The NC Insurance Commissioner now may allow lower minimum capital and surplus requirements for a protected cell captive;
- NC now allows a business entity organized outside of NC (e.g., Delaware) to be licensed as a captive insurance company in North Carolina. The likely most significant effect of this change will be to allow series LLC captives from other states such as Delaware and Montana to obtain NC captive licenses;
- A captive license applicant now may obtain provisional approval for a period of up to 90 days; and
- A captive now may be granted an extension of time to file an annual report.
Riser Adkisson LLP has extensive experience with captive insurance companies, including North Carolina protected cell insurance companies and protected cells. Contact Chris Riser for more information.