Monteplier, VT (PRWEB)
The outgoing Chairman of the Subcommittee on Insurance of the
Biggert went on to state, “This provision (NRRA) was intended to create certainty in the tax treatment and regulation of the surplus lines and in the reinsurance industry. Despite this very specific purpose, a couple of states are misinterpreting the application of NRRA’s definition of ‘Non-Admitted’.”
A coalition of the captive insurance industry, the
NRRA, a subsection of the Dodd-Frank legislation, has caused some confusion over whether it is applicable to captive insurance due to some misinterpretation of the current language.
The CCIC was formed by industry members to coordinate efforts to amend the law and provide clear and definitive language regarding the captive insurance industry and the NRRA. “A few domiciliary states and opportunistic service providers are clearly exploiting the present situation which is not in the best interest of their clients or the industry as a whole,” added
Representative Biggert suggested that a technical amendment may be necessary for solving this confusion, “In order to address the problem created, a technical amendment might be needed to reinforce the Congressional intent of this legislation.” A complete copy of the letter can be found at http://www.VermontCaptive.com/DoddFrank.
Captive insurance is a regulated form of self-insurance that has existed since the 1960’s, and has been a part of the
VCIA is the largest trade association in the world for captive insurance. Established in 1985, the association has grown to provide programs that support the captive insurance industry on both the state and federal levels for its 450-plus member companies.
For more information on the
Read the full story at http://www.prweb.com/releases/2013/1/prweb10294935.htm
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