Looking to recapture its prior competitiveness in the domestic captive insurance business, Nevada passed Assembly Bill 74 (AB 74), which amends the state’s captive insurance law. Nevada Governor Brian Sandoval recently praised the amendment, saying it that “will make Nevada a more attractive place to do business for captive insurers.”

A captive insurance company is usually formed as a subsidiary of a company to cover the risks of the parent company and its other subsidiaries. A captive insurance company typically doesn’t insure risks of unrelated third parties—although some will insure their customers’ risks. Other captive insurers insure the risks of members of a trade association or group.

Read this complete analysis of the impact at AdvisorFX (sign up for a free trial subscription with full access to all of the planning libraries and client presentations if you are not already a subscriber).

For previous coverage of the application of the Health Care law to captive provided health insurance, see Tax Facts, see 252. What nondiscrimination requirements apply to employer provided health benefits?.

Questions about Captives? Contact our Panel of Experts. Benjamin Terner is our “Captive Expert” and can answer your questions relating to domestic and offshore arrangements.

Tags: Agents and Marketers, Brian Sandoval, Business, Captives, Financial services, insurance, Nevada, United States

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