Nevada Gov. Brian Sandoval has signed Assembly Bill 74 (AB 74), a move that will strengthen the state’s commitment to the captive insurance industry, according to state Insurance Commissioner Brett Barratt.
The bill was submitted by the Nevada Division of Insurance and has provisions that reduce compliance expenses by no longer requiring “pure” captive insurers to be examined without cause, lowers application expenses and simplifies financial reporting.
“These changes are closely aligned with Nevada’s business friendly attitude. Captive insurers are also an excellent mechanism for businesses to capitalize on their successful risk management,” Sandoval said.
Nevada aims to promote growth of the captive industry because state leaders say it has direct and indirect benefits to the state. In addition to bringing in state general fund revenue, each captive domiciled in Nevada helps to diversify the state’s economy by creating white collar, non-polluting, non-tourism jobs, the governor’s office and DOI said.