Political Quotes

“today, I introduce the Captive Insurers Clarification Act. This simple, commonsense legislation will clarify terms included in the Dodd-Frank Wall Street Reform and Consumer Protection Act that stand to threaten the viability of the captive insurance industry in Vermont, South Carolina, and across the country. I am glad to have Senator Graham's support in this effort. Vermont is one of the leading onshore captive insurance domiciles in the country, with over 1000 licensed captive insurance companies. I have heard from the captive industry in Vermont, understandably concerned that language included in the Dodd-Frank Act may result in the double taxation of captives that operate in states where their headquarters are not domiciled. The Nonadmitted and Reinsurance Reform Act, NRRA, as included in Dodd-Frank, intended to facilitate the proper collection and allocation of self-procurement taxes. Captives are taxed and regulated in the state in which they are domiciled, not necessarily where their corporate headquarters are located. However, due to the ambiguity of the NRRA, captive insurers are concerned that both the state in which a captive is headquartered, and the state in which the captive is domiciled, may claim the premium tax. The Captive Insurers Clarification Act would simply clarify that such companies were never intended to be included under the Nonadmitted and Reinsurance Reform Act.…”