Last year, a federal law dealing with surplus lines premium tax was implemented in most states. Captive insurance companies monitored legislatures and regulators throughout the country to see what the reaction would be. The concern was that states would interpret the law to apply to captives and levy additional taxes. Arthur Perschetz and James Tsai authored an article for Risk Retention Reporter explaining the implications of the new law and how the concerns by captive insurance companies were unfounded as industry stakeholders, attorneys and others had gone to great lengths to quell any fears.

Reprinted by permission from Risk Retention Reporter.