On April 12, 2018, Kansas Governor Jeff Colyer signed into law SB 410– a bill establishing the Captive Insurance Act, which creates two new types of captives – branch and special purpose – and specifies the regulatory structure for each. The bill also raises the minimum capital and surplus requirements a pure captive insurance company must possess and maintain from $100,000 to $250,000.
The bill also creates the Captive Insurance Regulatory and Supervision Fund within the State Treasury and amends current insurance laws relating to companies subject to premium taxes by specifying the tax rate for direct premiums and assumed reinsurance premiums, as well as the maximum tax for each year, and requiring the tax to be calculated annually unless prorated for multi-year policies or contracts.
The bill also permits the insurance commissioner to adopt rules and regulations establishing standards for pure captives. KS SB 410 (April 12, 2018) (regulation and legislative analysis).
This post written by Gail Jankowski.
See our disclaimer.