Tennessee has started the process to update its captive legislation with a new bill introduced on 31 January.
The proposed changes will require captive insurance companies to pay certain penalties and interest on the late payment of premium taxes. They will also revise certain compensation provisions regarding examinations of insurance companies.
In addition, the changes include the authorisation of certain captive insurance companies to apply for and operate under a letter of dormancy, and provide for the conversion of protected cells and pure captive insurance companies.
House representatives David Hawk and Glen Casada introduced the HB302 captive bill
Last year, Tennessee updated its captive legislation with changes to the way captives redomesticate to the state, introduced legal action brought against a protected cell captive to specify which protected cells are a party to a suit, and reformed self-procurement tax forgiveness.
