Gov. Jay Nixon has signed a bill that makes improvements to the state’s captive insurance laws by simplifying the process of moving offshore captive operations to Missouri.
House Bill 577, an omnibus insurance bill, makes it easier for Missouri companies to bring their captive operations back to the state by removing certain financial restrictions and clarifying provisions on alien redomestication. The bill may also make it attractive for companies based outside Missouri to set up captive operations here.
Among the provisions of the new law:
• Specific allowance of alien redomestication, which makes the process as simple as redomestication of a U.S.-based insurer.
• Allows for reciprocal formations to accommodate the return of offshore not-for-profit groups.
• Removes a requirement for mandatory investment in Missouri, to accommodate companies with existing banking relationships.
• Allows additional options for admittance of available credit as assets for Special Purpose Life Reinsurance Captives.
• Reduces the number of resident incorporators for Special Purpose Life Reinsurance Captives from two to one.
• Mandates a portion of all captive premium tax to be allocated for department’s captive operations, helping to ensure the long-term viability of the DIFP’s program.