Insurance Company Redomestication (Part III)

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

Insurance Company Redomestication (Part I)

finance2With 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