AR SB789

Amends reinsurance credit provisions to allow captive insurance companies to take credit for reserves ceded to reinsurers either complying with Arkansas Insurance Code § 23-62-305(a)-(f) or not complying if approved by the Insurance Commissioner's business plan review.

Reduces premium tax rates on direct premiums for captive insurance companies: from 0.4% to 0.250% on first $20 million, from 0.3% to 0.150% on next $20 million, from 0.2% to 0.050% on next $20 million, and adds new 0.075% rate on amounts exceeding $60 million.

Establishes new reinsurance premium tax structure with tiered rates of 0.225%, 0.150%, 0.050%, and 0.025% on successive $20 million tranches, with exemptions for direct basis premiums and asset exchanges under common ownership.

Maintains minimum annual tax of $5,000 and maximum annual tax cap of $100,000 for captive insurance companies.

Declares emergency clause stating the bill is immediately necessary to attract captive insurance companies to Arkansas and becomes effective upon Governor approval or related actions.