Regulation and Oversight
CNMI Establishes Captive Insurance Law, Expanding Regional Domicile Options
Commonwealth of the Northern Mariana Islands (CNMI) has enacted the Captive Insurance Act of 2025, establishing licensing, capitalization, and regulatory requirements for various captive structures, including pure captives, group captives, and protected cell companies. The law positions CNMI as a new domicile choice alongside other regional jurisdictions such as the Federated States of Micronesia. Learn More
Louisiana Modernizes Captive Insurance Law with CHOICES Act
Louisiana has enacted Act 313, the Creating Holistic Options in Coverage for Enterprise and Self-Insurance (CHOICES) Law, modernizing its captive insurance framework. The law reduces capital requirements, introduces dormant and affiliated reinsurer structures, and defines risk retention groups. It also implements a tiered tax system, updated filing timelines, and broader definitions to align with current industry practices. Learn More
Promoter of Captive Insurance Program Settles IRS Enforcement Action
Bruce Molnar agreed to pay Internal Revenue Service (IRS) penalties for promoting a captive insurance program in place from 2005 to 2012. The program was the subject of the Syzygy Tax Court decision, which found it did not qualify as insurance for tax purposes. The case reflects broader regulatory scrutiny of captive structures. Read More
Arkansas Moves Forward with State-Owned Captive to Insure Public Property
Arkansas has approved the formation of a state-owned captive insurance company to insure public schools, higher education institutions, and state agencies. Backed by $136 million in funding, the program centralizes risk and engages the reinsurance market directly to manage rising premiums and improve long-term property insurance stability. Read More
Bermuda Permits Captive Insurers to Use Stablecoins Under New BMA Policy
A recent Appleby insight outlines a new Bermuda Monetary Authority (BMA) policy allowing captive insurers to use recognized stablecoins for key functions. Limited purpose insurers may now hold stablecoins for premiums, claims, and capital—up to 25 percent of their base—subject to BMA approval, without requiring a digital asset license. Read More
Connecticut Approves Captive Bill on Protected Cell Use
Connecticut's HB 6433 expands captive insurance flexibility by permitting conversions into protected cells, enabling transfers between sponsored captives, and authorizing the Insurance Commissioner to address insolvent cells separately. Read More
NAIC Opposes Federal Moratorium on AI Regulation in Insurance Sector
The National Association of Insurance Commissioners (NAIC) opposes a proposed 10-year federal moratorium on artificial intelligence (AI) regulation in insurance, warning it would hinder state oversight and disrupt current regulatory authority. The organization urges the Senate to remove the provision, citing concerns over consumer protection, federal preemption, and the need for continued supervision of emerging insurance technologies. Read More