In the insurance sector, many businesses opt for C corporations or LLCs. These entities can leverage the Internal Revenue Code’s provision, known as an S-election, to pass income, losses, deductions, and tax credits to individual owners, avoiding double taxation of business income.
When an insurance agency begins soliciting or transacting business outside its domicile state, it may need to register as a foreign entity with the Secretary of State’s Offices. It’s common for insurance professionals to be less familiar with this process, even compliance specialists may not be aware of some of the more “esoteric” tasks that certain states require.
Despite economic stresses, M&A activity remains a popular growth strategy for the insurance industry. However, overlooking regulatory compliance considerations in the planning and execution phases may lead to lengthy delays and unexpected costs. Here are five key tips to managing M&A compliance.
Once a business registers with the Secretary of State’s Office in a domicile or foreign jurisdiction, it needs to keep that information current.
It’s common for various business types to have different filing requirements and deadlines—even within the same jurisdiction.
You’ve just finished processing a stack of surplus lines policy filings or a premium tax report or two. A normal response is, “Phew! I’m glad THAT’s over”. Be careful, though; it may not be that straightforward. If a filing or policy is tagged, indicating that a surplus lines transaction has inaccurate or missing information. , there’s more work to do.
When first starting business in the non-admitted market, the to-do list of compliance tasks can feel intimidating. There are lots of new requirements and procedures to master, and the stakes are high, for both your bottom line and your regulatory reputation. Here are five pro tips for surplus lines compliance.
Insurance agencies often ask for help with “tidying up” insurance licensing or Secretary of State filings for newly acquired or merged business entities. Unfortunately, sometimes it is not possible. In some cases, they haven’t bought the agency, only some or all of its book of business, or have no legal standing to take any action that impacts the licensing or other regulatory filings for the entity.
The excess and surplus lines insurance market has long been a source of solutions for companies with emerging and difficult-to-place risks. The steady growth in E&S premium volume over the past two decades have made non-admitted business attractive for agencies and brokerage firms.
It’s easy to get caught up in the hype and promise of new technologies. But as insurance professionals, we must remember that AI is one tool of many at our disposal. We need to combine our understanding of its benefits with a healthy respect for the potential for damage if it is misused.