As discussed in our earlier article on the topic (a copy of which can be accessed here) and our prior entry on this site (which can be accessed here), uncertainty remains over whether the self-procurement tax and regulatory provisions of the Non-admitted and Reinsurance Reform Act, enacted as a part of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, apply to non-admitted insurance procured from a captive insurance company. Almost five full years after the passage of this act, commentators and advocates on both sides of the fence continue to debate whether captive insurance arrangements are caught up in the net of these provisions.
In an attempt to add clarity to the issue, Senators Lindsey Graham (R-SC) and Patrick Leahy (D-VT) have reintroduced proposed legislation that would exclude captive insurance companies from the coverage of the relevant portions of the NRRA. Similar legislation was introduced by Senators Graham and Leahy during the summer of 2014, but was not passed.
Visit our Insurance & Reinsurance Blog for the latest news and developments.Visit the blog
Sign up for our newsletter and get the latest to your inbox.