The Tribal Domicile of the Delaware Tribe of Indians

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1 The Tribal Domicile of the Delaware Tribe of Indians Tim Houseberg, Insurance Commissioner Charlie Cheek, Registrar

2 Welcome from the Delaware Indian Tribal Council Bartlesville OK Tribal Complex 2 info@thetribaldomicile.com

3 The Delaware Tribe Government Chief Chester Chet Brooks Tribal Council Tribal Headquarters in Kansas 601 High Street Caney, KS Main Phone: Tribal Offices in Oklahoma 170 NE Barbara Bartlesville, OK Main Phone: Fax: Office Hours: Monday-Friday 8:00 am - 5:00 pm address: tribe@delawaretribe.org Website: Other Governmental Departments Delaware Tribal Financial Services (DTFS) 3

4 Tribal Headquarters in Caney, Kansas Tribal Lands in Caney, Kansas 4

5 Recent History of the Delaware Tribe ( ) The wall on Wall Street (1680) 1778 Treaty with was built to separate the Delawares the Colonies from the Dutch 5

6 Can the Tribe Be an Insurance Domicile? Yes. Power derived from the traditional power of a sovereign government Tribe s power derived from tribal sovereignty 6

7 Tribal Sovereignty A Domestic Dependent Sovereign Nation The U.S. Constitution (1789) Recognizes Indian tribes as distinct governments on the same footing as foreign governments Authorizes Congress to regulate commerce with foreign nations, among the several states, and with the Indian tribes. 7

8 Tribal Sovereignty A Domestic Dependent Sovereign Nation Worcester v. Georgia ( ) U.S. Supreme Court ( The Marshall Trilogy ) Power to regulate commerce with the Indian tribes is exclusively vested in Congress Tribes recognized as domestic dependent sovereign nations within the borders of the U.S. These cases began the legal transition that now places the tribes on equal footing as the states 8

9 Tribal Sovereignty A Domestic Dependent Sovereign Nation Inherent authority to govern themselves Exercise rights within boundaries of states Separate from federal government, the states, and foreign nations Unless U.S. treaty or federal statute removes a power, the tribe is assumed to have it Tribe has equal footing as a state Corporation formed within the borders of the U.S. Begins corporate life as a U.S. domestic corporation No 953(d) election is needed 9

10 Is a Tribal Entity a Domestic Corporation? Clarification in the Treasury Regulations Treas. Reg (b)(1) clarified that domestic included Tribes for tax purposes Business entities; definitions. (a) Business entities. For purposes of this section and , a business entity is any entity recognized for federal tax purposes (b) Corporations. For federal tax purposes, the term corporation means (1) A business entity organized under a Federal or State statute, or under a statute of a federally recognized Indian tribe, if the statute describes or refers to the entity as incorporated or as a corporation, body corporate, or body politic; 10

11 Relationship with the Internal Revenue Code IRS Division: Indian Tribal Governments (ITG) Each Tribe is assigned to a specific specialist to handle individual Indian matters and Indian owned corporation matters The Tribe contacted their specialist regarding tribal corporations owned by Non Indians Use Kansas as the state when completing an electronic EIN application Tribal corporations owned by Non Indians are subject to the Internal Revenue Code since they are within the boundaries of the U.S. 11

12 Why Choose The Delaware Tribe of Indians Focus of The Tribal Domicile Allied Reinsurance Companies (ARCs) Allied Insurance Companies (AIC) and Tribal Insurance Company (TIC) regulations have been postponed Tribal Commitment to The Tribal Domicile Registrar and Insurance Commissioner have 15 year appointment 20 year guarantee of no tribal taxes other than fees Fees guaranteed for 5 year periods; limit on increases 15 year grandfather clause for the insurance law at the time the entity is incorporated or domesticated Tribal Governance Members of Tribal Council Monthly meetings on first Monday of each month Legal counsel 12

13 Why Choose The Delaware Tribe of Indians A Domestic Corporation No 953(d) election Ease of establishing bank accounts Direct and easy access to regulators and administrators You do not own a foreign corporation Straightforward Cost Structure One, all in fee for domestication, formation, or renewal. No separate fees for individual service request or special services Electronic Forms and Applications Fast turnaround (less than a week) 13

14 Why Choose The Delaware Tribe of Indians Corporate and Insurance Laws and Regulations Based on U.S. laws and regulations, written in plain language. No Itemized List No list of approved coverages/risks No approval needed for a new coverage/risk Is it an insurance/obligor contract (as defined in the tribal law) produced or accepted by a vehicle dealership? Risk transfer products produced at the dealership traditional F&I risks (VSC, GAP, etc.) and the newer ones (etch, roadside, etc.) Risks accepted by the dealership as the obligor or warrantor (maintenance, limited warranty, any dealer obligor product) 14

15 Why Choose The Delaware Tribe of Indians ARC Domestication/Redomestication DTFS welcomes any financially sound reinsurer to domesticate to The Tribal Domicile An easy transition that can be executed quickly for an existing insurer/reinsurer NO CHARGE to domesticate May domesticate before March 31 of any calendar year and pay only the renewal status fee After March 31 of any calendar year, the ARC pays only the renewal status fee in the following year Experts in the field DTFS leadership has 33 years combined experience in the auto industry 15

16 First Quarter 2015 Update Over 100 formations and domestications The Tribal Domicile has been featured in several articles, including P&A Magazine Service Provider list has expanded Multiple Insurance Companies are comfortable ceding to ARCs formed in The Tribal Domicile including Assurant, Courtesy, Pekin, Plateau and Wesco 7 Financial Institutions are willing to do business with companies domiciled in The Tribal Domicile 8 Insurance Managers are approved to form and domesticate reinsurance companies in The Tribal Domicile 16

17 Service Providers 17

18 Effective January 2015 Electronic Forms Available Online Insurance managers log into website Form a company Apply for authority to conduct the business of insurance 18

19 What Is Kansas Going to Say? Good Relationship with the State of Kansas Tribal activities Health initiatives Trust lands Housing Child welfare Elderly nutrition 19

20 What Is the Kansas Insurance Department Going to Say? Kansas has no authority The Tribe is making every effort to avoid confrontation with every state insurance department A major component of avoiding confrontation is not competing with their existing business This is a focused domicile primarily designed for vehicle dealer ARCs The Tribe is keeping various states regulatory authorities informed of its activities 20

21 State Taxation of ARCs in The Tribal Domicile The Delaware Tribe of Indians is a domestic dependent sovereign nation. Tribal sovereignty in the U.S refers to the inherent authority of indigenous tribes (Native Americans or Indians) to govern themselves within the borders of the U.S. Tribal Sovereignty provides ARCs domiciled in The Tribal Domicile protection and separation from state government 21

22 Visit Our Website Often in Tim Houseberg, Insurance Commissioner Charlie Cheek, Registrar

What can the European Captive Industry Learn from the U.S.?

What can the European Captive Industry Learn from the U.S.? Captive Live UK London, 23 January 2015 Steve Kinion Director, Delaware Insurance Department Delaware is the 3 rd Largest U.S. Captive Domicile