Changes to captive law ease state oversight

Legislation signed by North Carolina Gov. Pat McCrory will exempt captive insurers licensed in the state from having an annual board meeting if they utilize at least two North Carolina service providers for either legal, actuarial, accounting, captive management or other services acceptable to the state's insurance commissioner.

In addition, the measure, H. 287, signed June 30 gives the insurance commissioner discretion when setting minimum capital and surplus requirements for protected cell captive insurers applying for licenses.

Other provisions in the measure give the insurance commissioner authority to give 30-day extensions to captives to file their annual reports if they show a good cause for the extension.

“North Carolina’s captive insurance program has grown quickly and steadily in its first years. I expect even greater growth in the future as we continue to strengthen our captive insurance law and improve our program,” Raleigh-based North Carolina Insurance Commissioner Wayne Goodwin said in a statement.

Currently, North Carolina, which licensed 42 captives in 2015, has 98 captives, with several applications pending, said Debbie Walker, the state’s director of captive insurance.