This is the final installment in our series on insurance company redomestication. In the first part of this series, we examined some of the reasons why companies may consider redomesticating. In the second part, we discussed some preliminary steps that companies should take when considering redomestication. We also provided an overview of the initial stages of the redomestication process. This final part summarizes the final stages of the redomestication process and discusses some alternatives to redomestication that companies may wish to consider.
The Redomestication Process: New State Requirements
Once acceptable terms of redomestication have been worked out between the company and officials in the new state, the company will generally be required to file the Primary Uniform Continue reading
Companies operating in California are reminded of a law that went into effect in 2014 requiring website operators to disclose how the website responds to “do-not-track” signals. The law applies to all website operators collecting personal information from California consumers, including personally Continue reading
This is the second installment of our series on insurance company redomestication. In the first part of this series, we examined some of the reasons why companies may consider redomesticating. In this part, we discuss some preliminary steps that companies should take when considering redomestication and provide an overview of the first stage of the redomestication process.
Analysis and Planning
At the outset of the process, a company considering redomestication should clearly define the benefits it expects to achieve by redomesticating. Following that, the company should conduct an in-depth analysis of the states that appear to offer the greatest potential for achieving those benefits.
Domicile selection analysis should be undertaken primarily by the company’s tax and finance areas with assistance from legal counsel. The company should also consider using outside professionals who can offer more extensive research and data as well as lend a national perspective. It is generally Continue reading
What is OFAC?
“OFAC” stands for the Office of Foreign Assets Control. It is an office of the Department of Treasury established in 1950. OFAC enforces federal economic sanctions against terrorists, terrorist organizations, criminals, and organized crime. OFAC prohibits any person or business from providing services to, or engaging in a transaction involving, a person or organization subject to federal economic sanctions. OFAC also administers various economic sanctions Continue reading
With apologies to Benjamin Franklin, nothing is certain in the insurance business except premium taxes. While many companies view premium taxes as simply a given 2% state levy on gross revenues, others are taking a closer look them. In reality, that 2% is a rough average. Premium tax rates can differ from state to state by as much as 3% or more.
What makes this more than just a bit of trivia with which to bore your non-insurance friends is the fact that companies legally domiciled in states with relatively high premium tax rates (states with rates above the 2% national average) also pay higher rates in other states than do companies domiciled in Continue reading
In December, the NAIC’s Executive Committee/Plenary adopted a new consumer bill of rights document entitled, “NAIC Roadmap for Cybersecurity Consumer Protections”. This new document is the latest version of the NAIC’s consumer bill of rights concerning cybersecurity and is intended to comprehensively describe, “the protections the NAIC believes consumers are entitled to from insurance companies, agents and other businesses when Continue reading