North Carolina Captive Insurance Association

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151 Crest Road
Southern Pines, NC 28387

Governor Cooper Signs SB 347, Now Session Law 2022-7​

Governor Roy Cooper (D)  signed SB 347, The Captive Practice Act Amendments Bill into law on June 14, 2022. The legislation has now become Session Law 2022-7. If you would like to read the new statute (click here).

North Carolina’s elected Commissioner of Insurance Mike Causey commented after the bill’s signing that “We are grateful to all parties involved in getting this law over the line.” Commissioner Causey continued, “Each of those who participated were committed to making North Carolina a great home for captive insurance companies. The time is right for those that want to be a part of the North Carolina captive program to make the move to our great state.” 

North Carolina is a relative newcomer to the captive insurance industry, when the N.C. General Assembly enacted the state’s captive insurance law in 2013. With passage of Senate Bill 347 and its technical corrections, companies that formed their captive insurance companies in other jurisdictions will have a strong incentive to consider moving them to North Carolina, a welcoming domicile for captive insurers.

The new law also includes a waiver of premium taxes for the year in which any captive insurer, whether onshore or offshore, moving its home base to North Carolina, as well as a waiver of the next year’s premium taxes. It is thought that the premium tax holiday will entice those captive owners to move their captives to North Carolina.

Additionally, the new law modifies the captive insurer audit exemption provision by granting the Commissioner the authority to consider captive insurers’ requests for an exemption from an audit when the cost would pose a financial hardship. Exemption requests from the annual audit and actuarial opinion requirement based on financial hardship will be considered by the Commissioner on a case-by-case basis.

Together, these two provisions provide for significant cost savings to those captive insurers and are expected to fuel continued growth for North Carolina’s captive insurance industry. Diana Hardy, NCCIA Chairman said that “Now is the time for captive managers, captive companies to contact the state to learn how easy the process is to redomesticate to North Carolina. Continuing, “There is a reason North Carolina has become the 4th largest domestic captive domicile in a very short period. Just contact Lori Gorman our Deputy Commissioner for captive insurance and find out why.” Lori and the Commissioner’s staff can be reached at 919.807.6165.