SB237

Senate Bill 237 amends Arkansas law regarding the licensing and regulation of captive insurance companies. It grants the Insurance Commissioner the authority to issue provisional licenses to captive insurers if deemed to be in the public interest, provided certain application and character requirements are met. The bill updates capital and surplus requirements for various types of captive insurance companies, generally lowering the minimum thresholds required for licensure. It clarifies regulatory procedures for the organization, merger, and conversion of captive insurers. Additionally, the bill establishes a streamlined process for foreign or alien insurers to 'redomesticate' to Arkansas, allowing them to become domestic captive insurance companies. The bill also specifies tax reporting and payment obligations for redomesticating insurers, including elective tax incentives for the first or second year of operation.