September is here, the kids are back at school, and although we are still getting fabulous weather up here in the Green Mountain State, it’s time to think ahead to fall. As many of you hear, new legislation to clarify the Non-Admitted Reinsurance Reform Act (NRRA) as it pertains to captive insurance was introduced by Senator Patrick Leahy (D-VT) and Senator Lindsay Graham (R-SC) in the U.S. Senate. A companion bill was introduced by Congressman Peter Welch (D-VT) in the U.S. House of Representatives. Efforts to clarify the law have been a priority of the Coalition for Captive Insurance Clarity (CCIC) and we think this is our best chance to date to get something done on it.
I will be travelling down to the nation’s capital in a week or so to meet congressional staff to discuss this issue and other issues concerning the captive industry. I love going to DC – there is an energy there that’s hard to match (OK, it’s not always “good energy”) in a truly beautiful city. It gives us a chance remind folks about the benefits of the captive industry, not only to the Vermont delegation who are clearly supportive, but to others who can appreciate the flexibility and cost savings captives provide their home-state businesses and non-profits. One of the issues we will be discussing is the proposal from the Federal Housing Finance Agency (FHFA) to revise its regulations governing Federal Home Loan Bank (FHLB) membership that would primarily define the term “insurance company” to exclude Bank membership captive insurers.
At the end of the month I will see many of our friends in the Risk Retention Group sector at the “good NRRA” (the National Risk Retention Association) conference in Chicago –. Thank you all very much and I look forward to hearing from you!