A.M.BestTV: Captive Proponents Push to Clarify Premium Tax Issue

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June 29, 2015 11:35 AM EDT

OLDWICK, N.J.--(BUSINESS WIRE)-- This A.M.BestTV episode examines legislation recently reintroduced by Sens. Lindsey Graham, R-S.C. and Patrick Leahy, I-Vt. that proposes to amend the Nonadmitted and Reinsurance Reform Act of 2010, which determines how surplus lines taxes are paid by nonadmitted insurers. Click on http://www.ambest.com/v.asp?v=nrra615 to view the video program.

The proposed legislation would clarify whether independent procurement taxes on insurance purchased from a captive must be paid to the insurer’s home state and to the captive’s domicile.

“The original legislation was not meant to include captives because captives are different,” said Karen Weldin Stewart, insurance commissioner at the Delaware Department of Insurance. “Captives were not meant to be in the same category as surplus lines, since surplus lines are taxed in their home state. If this legislation passes it would mean a lot for domiciles because it would clarify where domiciles are going to be taxed at and what their taxes would be; consequently, allowing the domiciles to know that they won’t be double taxed.”

Also in the episode, A.M. Best Group Vice President John Andre discusses the possible impact the proposed legislation could have on captives and A.M. Best’s ratings of them.

“A.M. Best rates a number of captives in various domiciles throughout the United States,” said Andre. “Additionally, A.M. Best monitors how tax considerations affect rated captives, since these could possibly have a negative impact on the captives, in general, and may certainly influence some of A.M. Best’s captive ratings.”

Other people who appear in this episode include:

  • Rick Roberts, president at RIMS, The Risk Management Society.

Recent episodes of A.M.BestTV include:

  • AXIS’ CEO and PartnerRe’s Chairman Tout Benefits of Announced Merger: A recent interview given by Albert Benchimol, president and chief executive officer at AXIS Capital Holdings Limited and Jean-Paul Montupet, chairman at PartnerRe Ltd, concerning the proposed merger between their two companies: http://www.ambest.com/v.asp?v=ap615.
  • Insurers Warn of Looming Talent Gap: Highlights from the Insurance Industry Charitable Foundation’s Women in Insurance Global Conference in New York, NY, where insurers said the insurance workforce is aging without an adequate influx of younger management talent: http://www.ambest.com/v.asp?v=iicf615.
  • Cyber Coverage Continues to Evolve: This recent Best’s Review webinar focuses on cyber and data breach risks and how these are changing and expanding: http://www.ambest.com/v.asp?v=cyber615.
  • Insurers Look to Close the Global Coverage Gap: Highlights from the International Insurance Society’s Global Insurance Forum in New York, NY, where insurance executives said they can expand coverage through innovation and private-public partnerships: http://www.ambest.com/v.asp?v=iis615.

A.M.BestTV covers exclusive A.M. Best information and reports, targeted topics and key developments in the (re)insurance industry every Monday, Wednesday and Friday. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html. View A.M.BestTV episodes at http://www.ambest.tv.

A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2015 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

A.M. Best Company
Lee McDonald
Group Vice President, Publication and News Services
(908) 439-2200, ext. 5561
[email protected]

Source: A.M. Best Company


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