ARKANSAS, FLORIDA, MISSOURI, AND TEXAS PASS CAPTIVE INSURANCE COMPANY LEGISLATION
In an attempt to attract more captive insurance companies to the state, Arkansas passed a bill on March 21, 2013 that provides a tax break to captive insurance companies that meet certain requirements. S. B. 789, 89th Gen. Assem., Reg. Sess. (Ark. 2013). Effective July 1, 2013, captive insurance companies that meet certain capital and surplus requirements in the state of Florida may become licensed to provide worker’s compensation and employer’s liability insurance. H. B. 1191, Reg. Sess. (Fl. 2013). Missouri amended its captive insurance law effective August 28, 2013 to allow for the formation of sponsored captive insurance companies, which are defined as captive insurance companies in which one or more sponsors provide the capital and surplus, that insure the risks only of its participants, and fund its liability to participants through protected cells. S. B. 287, 97th Gen. Assem., Reg. Sess. (Mo. 2013)(full text and summary). Texas also recently passed legislation authorizing the licensing of pure captive insurance companies and the imposition of fees and taxes on those companies. The Texas legislation took affect in May 2013. S. B. 734 (Tx. 2013).
This post written by Abigail Kortz.
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