Captive Insurance in the Capital: Risk Finance Bureau Issues 2007 Reporting Instructions - Articles

DISB’s Risk Finance Bureau has issued its 2007 reporting instructions for District of Columbia domiciled captive insurance companies. The full instructions, which cover risk retention groups (RRGs) as well as non-RRGs, may be found on DISB’s website at disb.dc.gov/, under number 3, “Financial reporting and premium tax information.” Included with the reporting instructions on the Web site are the 2007 DC Captive and Domestic RRG Tax Return, and the 2007 DC Captive Reporting Blank Form (for use by non-RRGs).

Highlights of the reporting instructions, which include guidance on year-end 2007 financial reporting requirements for all companies, 2008 quarterly financial reporting requirements for RRGs, 2007 premium tax filing requirements for all companies and 2008 Certificate of Authority Renewals for all companies, are as follows:

RRGs and non-RRGs shall generally report on the basis of “GAAP.”
RRGs shall use the NAIC “Yellow-book” for un-audited annual and quarterly filings.
Non-RRGs may use the “DC Blank” for the un-audited annual filing.
The 2007 “DC Blank” now includes an “Investment schedule.”
Un-audited annual statements for 2007 are due March 2, 2008. (Please note that March 2, 2008, is a Sunday. Any filings with a due date of March 2, 2008, are due Monday March 3, 2008. Any time a due date falls on a weekend or an official DC government holiday, the due date is moved to the next business day after the weekend day or holiday.)
RRGs must include a “GAAP” to statutory accounting principles (“SAP”) reconciliation in the Notes to the annual and quarterly un-audited filings.
Audited financial statements for all captive insurance companies (RRGs and non-RRGs) are due on or before June 30, 2008.
Actuarial opinions for all captive insurance companies (RRGs and non-RRGs) are due on or before June 30, 2008.
Special instructions apply for cell and branch reporting.
All filings should be submitted to DISB in hard copy and electronically. Two hard copies of the annual and quarterly un-audited statements are required and at least one hard-copy of all other financial filings is required. Electronic filings should be sent to a newly established e-mail address, captive.filings@dc.gov.
PLEASE NOTE: For RRGs required to file with the NAIC and for other companies voluntarily filing with the NAIC, effective January 1, 2008, hard copy annual statements, quarterly statements and supplemental filings are no longer required to be filed with the NAIC. Requirements for electronic filings to the NAIC have not changed.
All domestic captives are required to file a 2007 DC Premium Tax Return on or before March 2, 2008.
All licensed captive insurance companies and risk retention groups shall renew Certificates of Authority on or before April 30, 2008.

Questions regarding financial filings may be directed to James Lawrence at (202) 727-8509, or james.lawrence@dc.gov.

Questions regarding premium taxes may be directed to Dana Sheppard at (202) 727-5074, or dana.sheppard@dc.gov.

And questions regarding certificates of authority may be directed to Joyce Lewis at (202) 727-1563, or joyce.lewis@dc.gov.