FAQ

Frequently Asked Questions

Is the Delaware Tribe of Indians a federally recognized tribe?
A federally recognized tribe is an American Indian or Alaska Native tribal entity that is recognized as having a government-to-government relationship with the United States, with the responsibilities, powers, limitations, and obligations attached to that designation… (U.S. Department of the Interior Indians Affairs).

The Delaware Tribe of Indians is a federally recognized tribe and is listed in the Federal Register. https://www.federalregister.gov/d/2024-00109/p-78

Can a tribe be an insurance domicile?
U.S. legal pronouncements establish the power of The Tribal Domicile to be an insurance 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. The federal government recognizes tribal nations as “domestic dependent nations” and has established a number of laws to clarify the relationship between the federal, state, and tribal governments. The Constitution and, later, federal laws grant local sovereignty to tribal nations, yet do not grant full sovereignty equivalent to foreign nations, hence the term “domestic dependent nations.” This limitation to tribal nations’ sovereignty became federal law in 1832 after a U.S. Supreme Court opinion delivered by Chief Justice John Marshall in the case of Worcester v. Georgia.
Worcester v. Georgia (1828‐1832)
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.

Is an entity a domiciled in The Tribal Domicile a domestic corporation?
Companies domiciled in The Tribal Domicile are domestic insurance companies for U.S. federal income tax purposes and reporting.

Treas. Reg. § 301.7701‐2 (b) (1) clarified that “domestic” included Tribes for tax purposes

§ 301.7701‐2 Business entities; definitions.
(a) Business entities. For purposes of this section and § 301.7701‐3, 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;

The Internal Revenue Service has audited companies domesticated in The Tribal Domicile and no issues or concerns were identified regarding the domicile of the entities. 

How are insurance companies domiciled in The Tribal Domicile taxed?
The Delaware Tribe of Indians does not impose a tribal tax on companies formed or domesticated in the domicile. Tax exemption certificates are issued upon formation or re-domestication of these companies.

Companies domiciled in The Tribal Domicile are U.S. Corporation and are taxed under federal law per the Internal Revenue Code.

Will The Tribal Domicile rules change?
Companies domiciled in The Tribal Domicile are protected from unforeseen regulatory change. The Delaware Tribe of Indians Title 27 Insurance Act incorporated a grandfather clause – upon issuance of a certificate of authority, the company has the option to be bound by the laws and regulations that were in effect when the company either formed or domesticated.

Does the National Association of Insurance Commissioners (NAIC) issue ID numbers for ARCs domiciled in the jurisdiction of the Delaware Tribe of Indians?
Yes, NAIC issues alien insurer identification numbers to risk-bearing entities for the purpose of identifying those who assume reinsurance with a domestic insurance company.