Section 27-1-2-2.3 - Captive insurers(a) As used in this section, "captive insurer" means a foreign company or an alien company: (1) that is supervised in the foreign or alien jurisdiction;(2) that is owned by a person that conducts business in Indiana;(3) whose exclusive purpose is to insure property and casualty risks of:(A) the parent entity described in subdivision (2);(B) affiliates of the parent entity; or(C) a controlled unaffiliated business; which may include reinsuring (through risk-sharing arrangements) property and casualty risks insured by other foreign companies or alien companies described in subdivision (1); and
(4) that: (A) is owned or controlled by a state educational institution (as defined by IC 21-7-13-32); or(B) has made an election under Section 831(b) of the Internal Revenue Code if that election is in effect.(b) As used in this section, "controlled unaffiliated business" means a business: (1) that: (A) is not an affiliate of; and(B) has a contractual relationship with; a parent entity described in subsection (a)(2) or an affiliate of the parent entity; and
(2) the risks of which are managed by a captive insurer.(c) Except as provided in this section, this article does not apply to a captive insurer.(d) A captive insurer that is doing business in Indiana:(1) is not required to obtain a certificate of authority in Indiana under IC 27-1-6 for domestic formation or under IC 27-1-17 for foreign company admission; (2) shall register with the commissioner; and(3) shall, for each calendar year after 2012 in which the captive insurer is doing business in Indiana, pay into the treasury of this state a tax of two thousand five hundred dollars ($2,500).(e) A captive insurer that is required to pay the tax imposed for a calendar year under subsection (d)(3) shall pay the tax as follows: (1) For a tax imposed under subsection (d)(3) for calendar year 2013, the captive insurer shall pay the tax before July 1, 2014.(2) For a tax imposed under subsection (d)(3) for a calendar year after 2013, the captive insurer shall pay the tax before April 15 of the following calendar year.(f) The state and a political subdivision of the state shall not impose a license fee or privilege or other tax on a captive insurer, except the following: (1) The tax described in subsection (d)(3).(2) An applicable tax on real and tangible personal property of the captive insurer.Amended by P.L. 242-2015, SEC. 42, eff. 7/1/2015.Added by P.L. 129-2014, SEC. 3, eff. 3/25/2014, retroactive.