For Immediate Release: October 23, 2013
RALEIGH — Insurance Commissioner Wayne Goodwin is pleased to announce that North Carolina is open for business as a domicile for captive insurance companies. The North Carolina Captive Insurance Act, signed into law on June 19, is now in effect, allowing for the formation of captive insurance companies in the state. The law became effective with the appropriation of funding from the N.C. General Assembly to implement the act.
“Entering the captive insurance market will provide economic opportunities for North Carolina and help accommodate the needs of businesses in our state,” said Goodwin. “We have a state-of-the-art captive law, and the Department of Insurance is committed to making North Carolina an attractive new home for captives.”
Captive insurance is typically a form of self-insurance in which an insurance company is formed by one or more non-insurance companies to insure the risks of its parent company and affiliated companies. Captives are used as a risk management tool to meet or assist in meeting the needs of the captive’s owners; they do not offer insurance to the public. Captives create jobs for those who form and perform services for the captive, and they generate premium tax revenues for the state or jurisdiction in which they are established.
Currently, there are more than 5,000 captive insurance companies in the world, and more than 30 states in the U.S. have enacted legislation related to the licensing and regulation of captives. The N.C. Captive Insurance Act passed with unanimous support of the N.C. General Assembly. The new law comes after years of advocacy from the Department of Insurance for captive insurance enabling legislation in North Carolina.
Read the law and learn more about forming a captive insurance company at www.nccaptives.com.