The Tennessee Department of Commerce and Insurance has substantially revised its rules for captive insurance companies. Significant changes include:
- a requirement that captive insurance companies use the OPTins system to file premium tax, penalty, and interest forms and payments;
- a requirement that annual financial reporting be done using a form included in the appendix to the new rules;
- revisions to the rules regarding the required financial reports, audits, and examinations of captive insurance companies, including the addition of requirements specific to "protected cell captive insurance companies," which may omit from their financial reports individual cells for which no premiums were collected or policies written during the relevant year;
- authorization for the commissioner to order "limited scope examinations" to be conducted upon captive insurance companies "when questions arise about a captive insurance company's solvency, governance, operating practices, or other" areas determined by the commissioner;
- a provision allowing a captive insurance company to request that the commissioner or a designee conduct an "informal visitation" of such company, for which a report making suggestions and recommendations will be issued.
These rules will become effective December 21, 2017, and will be codified at Tenn. Comp. R. & Regs. 0780-01-41-.01 through 0780-01-41-.15.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.