New York and London partner Michael Byrne wrote an article for Business Insurance titled, “Understanding Self-Procurement Taxes, Captive Insurers and the NRRA.”
The NRRA was enacted as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and has triggered various discussion threads on whether the NRRA applies to captive insurance, because of the related amendments to state self-procurement premium tax laws.
Michael’s article deconstructs the NRRA and its scope and emphasizes that self-procurement taxes are governed by state law and do not emanate from the NRRA. He said the NRRA has, however, heightened awareness of self-procurement taxes and the related opportunities for alternatives to the traditional captive domiciles and other options.
He also laid out various options that captives and captive managers may wish to consider moving forward.