NC S476

Enacts the North Carolina Captive Insurance Act to establish procedures for organizing and regulating captive insurance companies, including pure captive, association captive, industrial insured captive, risk retention groups, protected cell captive, incorporated cell captive, branch captive, and special purpose financial captive (SPFC) companies.

Establishes minimum capital and surplus requirements ranging from $250,000 for pure captive and protected cell captive companies to $1,000,000 for risk retention groups, with applicants required to submit organizational documents, financial statements, plans of operation, and evidence of soundness to the Commissioner.

Creates a tax regime for captive insurance companies under G.S. 105-228.4A with tiered premium tax rates (0.025%-0.4% depending on premium volume and contract type) with minimum tax of $5,000 and maximum cap of $100,000, exempting captive insurers from franchise, income, and insurance regulatory charges.

Establishes special provisions for protected cell captive companies allowing multiple protected cells with segregated assets and liabilities, and SPFCs exclusively for insurance securitization transactions with protected cells and reinsurance capabilities subject to Commissioner approval.

Requires annual financial reporting and audits, prohibits certain insurance lines (personal auto, homeowner's, life, workers' compensation on direct basis), restricts investment activities for most captive types, and exempts captive insurers from rating organization membership and state guaranty/insolvency funds.