Arkansas Amends Captive Insurance Law, Includes Excise Tax Provisions

The Arkansas Governor signed a law concerning the licensing and regulation of captive insurers. The law includes: 1) providing that a foreign or alien captive insurance company redomesticating in the state is liable for premiums tax on premiums paid after redomestication; 2) providing that a redomesticating captive insurance company may elect to forego the payment of premium taxes, in either its first or its second year of operations, but not both, after redomesticating into the state, subject to recapture of the tax plus 10 percent per annum if the company surrenders its license or redomesticates in another jurisdiction within 5 ...