DE HB411

Amends Delaware Code Section 6914(c) regarding captive insurance company taxation to address unintended consequences from House Bill No. 15 (signed June 24, 2015)

Establishes that series captive insurance companies assuming reinsurance premiums from other captive insurance companies may elect to assume tax liability at the original rate, preventing double taxation on ceded premiums

Specifies minimum annual tax of $3,500 for series captive insurance companies and maximum aggregate tax of $200,000 for other captive companies and protected cells

Exempts special purpose captive insurance companies (formed as LLCs or statutory trusts) from premium taxation when they did not collect direct premiums, assume reinsurance, or incur insurance obligations during the entire calendar year

Takes effect retroactively as of June 24, 2015