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Senate passes House Bill 7, a tax-code cleanup for captive insurance companies
Summary
House Bill 7, a Department of Insurance cleanup measure clarifying tax treatment for captive insurers, passed the Senate by roll call. Sponsors said it resolves an inconsistency in the insurance code and does not change the underlying captive insurance regulatory framework.
House Bill 7, described on the floor as a Department of Insurance technical cleanup, passed the Senate on March 27.
Senator Manzanvinos, speaking for the bill, said the measure "addresses an inconsistency in the insurance code relating to how taxes for captive insurance companies are received." He defined captive insurers on the floor as licensed entities that "are essentially self-created insurance companies designed to handle specific risks of a parent company or industry" and noted the bill clarifies a quarterly payment option for captive insurer taxes.
Nut graf: the bill is a code cleanup requested by the Department of Insurance to clarify payment timing and related references; the sponsor offered to have departmental staff answer questions if senators wished.
The roll call recorded 19 yes and 2 absent; the bill was declared passed to the Senate.
Ending: The measure was presented as noncontroversial; department staff were available to answer technical questions and no amendments were offered on the floor.
