H163 Summary

• Makes clarifying and technical changes to North Carolina's captive insurance law by amending definitions, licensing requirements, and operational provisions for various types of captive insurance companies.

• Simplifies definitions and removes obsolete categories (incorporated cell captive insurance company), while adding new definitions including "core," "impairment," and clarifying "affiliate" and "controlled unaffiliated business" terms.

• Allows special purpose captive insurance companies to be organized in any form approved by the Commissioner and permits captive insurance companies to establish separate accounts with Commissioner approval for managing specific risks.

• Modifies annual reporting requirements, allowing the Commissioner to waive annual reports if annual audits are filed and to require more frequent filings when necessary; updates audit and actuarial opinion requirements.

• Authorizes the Commissioner to share confidential insurance documents with the Department of Revenue for tax purposes and vice versa under specified conditions.