Chrome 38+
Firefox 33+
Internet Explorer 9+
Americas Domiciles
Arizona
| Head of Office | Julie Boucher |
| Senior Team | Rae Brown |
| Office & Mailing Address |
Marsh Management Services, Inc. Captive Solutions 2325 E. Camelback Rd., Suite 600 Phoenix, AZ 85016 |
| Telephone | +1 (602) 337-6247 |
| Facsimile | +1 (602) 337-6399 |
Basic Information
|
|
| Location | Arizona is located in the southwestern area of the United States. |
| Accessibility | Direct flights are available to Phoenix, Arizona from most U.S. cities. |
| Applicable Legislation | ARS Title 20, Chapter 4, Article 14, effective August 31, 2012; subsequently revised effective September 2003 and August 2005. |
| Number of Captives | There are 111 active captives as of year end 2014. |
| Regulatory Agency | Arizona Department of Insurance, 2910 North 44th Street, Suite 210, Phoenix, AZ 85018 |
REGULATORY ISSUES
|
|
| Acceptable Insurance Subsidiaries | Pure captives, association captives, agency captives, branch captives, group captives, protected cell captives, and risk retention groups |
| Acceptable Corporate Forms | Stock, mutual, reciprocal, nonprofit, or limited liability company |
| Permitted Business | All property and casualty lines; other lines under certain circumstances upon approval of the insurance commissioner |
| Direct Insurance Permitted | All permitted business |
| Reinsurance Permitted | Most lines of insurance, upon approval of the insurance commissioner |
| Policy Form and Rate Approval | Not required (but submitted in business plan) |
| Local Office Requirement | Permissible lines of business with underwriting authority Payment of fees At least one Director meeting annually in Arizona Maintain principal place of business in Arizona Arizona captive manager Books and records in Arizona Minimum capital and surplus Resident statutory agent Financial reporting requirements |
CAPITALISATION & SOLVENCY REQUIREMENTS
|
|
| Entity | Minimum cash or letter of credit: |
| Pure Captive | $250,000 |
| Group Captive | $500,000 |
| Risk Retentions Group | $500,000 |
| Agency Captive | $500,000 |
| Protected Cell Captive | $500,000 |
| Reciprocals | $500,000 |
| Pure or Group Reinsurers | One half of the the above-indicated amounts |
| Solvency | No formal requirements |
| Premium Taxes | No premium taxes, direct or assumed |
| Intercompany Loans | Only a pure captive insurer may make loans to its parent on written approval by the director. |
| Investment Restrictions | Group, agency, and protected cell captives must comply with the investment requirements prescribed in Chapter 3, Article 2 of Title 20. A pure captive insurer is not subject to restrictions on allowable investments. Only a pure captive insurer may make loans to its parent on written approval by the director. |
| Taxation | Income generated by the captive will be subject to the federal tax rate of the captive parent (assuming the parent is U.S.-based) otherwise, the captive income will initially be subject to the U.S. federal rate and consolidated at the rate of the foreign parent. Zero state income tax on profits is earned by the captive. |
Barbados
| Head of Office | Nicholas Crichlow |
| Senior Team | Nicholas Crichlow Margaret Howard |
| Office Address | Building No. 1 Chelston Park Collymore Rock St. Michaels, Barbados |
| Mailing Address | P.O. Box 1274 Bridgetown, Barbados West Indies |
| Telephone | +1 (246) 436-9929 |
| Facsimile | +1 (246) 436-9932 |
General Information |
|
| Location | Barbados is the eastern-most of the Caribbean islands and is located approximately 270 miles north of Venezuela. Barbados has a population of approximately 280,000 and a land area of 166 square miles. |
| Accessibility | The island is easily accessible on frequently scheduled flights from Miami, New York, Toronto and London. |
| Applicable Legislation | The Insurance Act or The Exempt Insurance Act |
| Number of Captives | Approximately 261 as of 11-March-2013 |
| Regulatory Agency | Financial Services Commission |
REGULATORY ISSUES
|
|
| Acceptable Insurance Subsidiaries | Single Parent or Association Captives |
| Acceptable Corporate Forms | Stock or Mutual |
| Permitted Business | All commercial lines, personal lines and unrelated business permitted except local Barbados risk. |
| Direct Insurance Permitted | All Lines |
| Reinsurance Permitted | All Lines |
| Policy Form and Rate Approval | Not required |
| Local Office Requirement | Registered office unless self-managed. Licensed management company unless self-managed. |
CAPITALISATION & SOLVENCY REQUIREMENTS
|
|
| Stock Company | Minimum Paid-In Capital (Cash or Letter of Credit) $125,000 |
| Mutual Company Solvency Margin for General Business | Minimum Contributed Reserves $125,000 During the first year, assets must exceed liabilities (solvency margin) by at least $125,000. After the first year, the company must maintain a solvency margin such that it is at least equal to: a) 20 percent of premium income for the preceding financial year for the premium income up to US$5 million, plus b) 10 percent of premium income for the preceding financial year for premium income in excess of US$5 million. |
| Solvency Margin for Long-Term (Life) Business | Assets must exceed liabilities. |
| Premium Taxes | No local premium tax is imposed. Premium for U.S. risk may be subject to Federal Excise Tax of 4 percent on direct policies and 1percent on reinsurance policies if captive is viewed as an insurance company for U.S. federal tax purposes. |
| Intercompany Loans | Require approval by the Supervisor to be included as an admitted asset for solvency margin calculation. Interest earned may be subject to 30 percent federal withholding tax. |
| Investment Restrictions | No specific restrictions. |
| Taxation | If the Company is licensed under the Exempt Insurance Act, no income tax, capital gains tax, withholding tax, or other direct tax is levied in Barbados. Barbados will guarantee these exemptions for a period of 15 years from the date of the company's incorporation. Thereafter, a tax rate of 8.00 percent will be applied on the first $125,000 of taxable income only. The current license fee of $10,000 is not payable when the 8.00 percent is payable. In addition to its treaty with the United States, Barbados has a network of tax treaties with many countries including Canada, Denmark, Norway, Switzerland, and the United Kingdom. |
| Reporting Requirements | Auditors Certificate of Solvency Certified Loss Reserves-required for long-term business and where loss reserves exceed 200 percent of its capital and surplus accounts. |
Bermuda
| Head of Office | Jill Husbands - Head of Office & Managing Director David Ezekiel - Chairman & Managing Director |
| Senior Team | Lawrence Bird Stephen Drake Paul Gatutha Nicholas (Nick) Warren Gregory Tyers Nicola Hallett |
| Office Address | Victoria Hall 11 Victoria Street Hamilton HM11, Bermuda |
| Mailing Address | Victoria Hall P.O. Box HM 1826 Hamilton HMHX, Bermuda |
| Telephone | +1 (441) 292-4402 |
| Facsimile | +1 (441) 292-1563 |
General Information |
|
| Location | Bermuda consists of a group of small islands located off the Mid-Atlantic coast of the United States approximately 770 miles from North Carolina. The population of Bermuda is approximately 64,000. |
| Accessibility | The Island is easily accessible on frequently scheduled flights from New York, New Jersey, Boston, Atlanta, Toronto, London, Miami and Philadelphia. |
| Applicable Legislation | The Companies Act of 1981 and The Insurance Act of 1978 (amended in 1985 and subsequent years) govern the formation of insurance companies. Bermuda Monetary Authority is the regulatory jurisdiction responsible for the supervision of captive operations in Bermuda. |
| Number of Captives | 831 as of 31-Dec-2013. |
| Regulatory Agency | The Registrar of Companies |
REGULATORY ISSUES
|
|
| Acceptable Insurance Subsidiaries | Single Parent, Group or Association Captives, Segregated Cell Companies, Special Purpose Insurers and Life Insurance – all in the form of both insurance and reinsurance companies. |
| Acceptable Corporate Forms | Stock or Mutual |
| Permitted Business | All commercial lines, personal lines and unrelated business permitted |
| Direct Insurance Permitted | All commercial lines except where restricted in insured jurisdiction, i.e. statutory coverages such as Workers' Compensation and Automobile Liability |
| Reinsurance Permitted | May assume and cede any reinsurance other than from or to non-exempt domestic Bermuda sources |
| Policy Form and Rate Approval | Not required |
| Local Office Requirement | Registered office and a resident representative, together with a principal representative and a local licensed insurance manage. A local director must always be maintained if a resident representative is not used. One shareholders' meeting annually anywhere in the world, may be done by proxy. |
Capitalisation & Solvency Requirements
|
||||
| Class 1 |
Class 2 |
Class 3,3A,3B |
Class 4 |
|
| Type of Company | Pure single parent captives | Group or single parent captives | Any insurance or reinsurance company | Any insurance or reinsurance company |
| Maximum Unrelated (1) Risk Permitted | 0% | 20% | 3 - 20 to 50% 3A/B(d) - over 50% |
|
| Minimum Capital (2) & Surplus | $120,000 | $250,000 | $1,000,000 | $100,000,000 |
| Solvency Margin Premium Test | 20% of Net Written Premiums for the First $6,000,000 10% of Net Written Premiums in Excess of $6,000,000 |
20% of Net Written Premiums for the First $6,000,000 10% of Net Written Premiums in Excess of $6,000,000 |
20% of Net Written Premiums for the First $6,000,000 15% of Net Written Premiums in Excess of $6,000,000 |
20% of Net Written Premiums A Maximum Deduction of 25% of Gross Premium for Reinsurance |
| Solvency Margin Loss Reserve Test | 10% of loss reserves | 10% of loss reserves | 15% of loss reserves | 15% of loss reserves |
| Actuarial Opinion (3) |
None required | Required every three years | Required every year | Required every year |
| (a) The term "unrelated" has not been defined for regulatory purposes. Sources indicate however that entities with which the captive parent has an existing non-insurance relationship may not be considered an unrelated risk under the new regulations. (b) All classes require $120,000 of Cash Capitalisation, except for Class 4 which is $1 million. (c) Captives whose products and professional liability writings total 30% of gross written premiums are required to obtain certification from a loss reserve specialist. (d) Class 3B insurers are those that write over 50% of unrelated business and premiums in excess of US$50M. |
|
| Premium Taxes | No local premium tax is imposed. Premium for U.S. risk may be subject to Federal Excise Tax of 4% on direct policies and 1% on reinsurance policies if captive is viewed as an insurance company for U.S. federal tax purposes. |
| Intercompany Loans | Allowable but does not qualify as an admitted asset for solvency purposes, unless approved by the regulator, which requires a review of the related entity financial financial position. The interest on the loan earned by the captive may be subject to 30% federal withholding tax, unless 953D election is taken. |
| Investment Restrictions | The captive must comply with the Minimum Liquidity Ratio for General Business requirements which states that the value of relevant (liquid) assets of the insurer conducting general business may not be less that 75% of the amount of its relevant liabilities, unless the Bermuda Monetary Authority consents to waive this requirement. Certain assets may be considered "non-relevant" (usually non-liquid) and therefore would not be considered in calculating the liquidity ratio. |
| Taxation | Bermuda has no income, profit or capital gains tax. Bermuda will enter into an agreement with the captive to levy no new taxes until 2016. |
Reporting Requirements
|
|
| Class 1 | Audited solvency certificate and declaration of ratios Audited financials required annually Certified loss reserves not required unless discounting to meet solvency margin, or professional liability premium is greater than 30% of the total gross written premium |
| Class 2 | Audited solvency certificate and declaration of ratios Statutory financial statements Audited financials required annually Triennial (or annual if discounting to meet solvency margin or if professional liability premium is greater than 30% of the total net premium) |
| Class 3 | Audited solvency certificate and declaration of ratios Statutory financial statements Audited financials required annually Certified loss reserves required annually |
| Class 4 | Audited financials required annually Certified loss reserves required annually Audited solvency certificate and declaration of ratios |
British Columbia
| Marsh Canada Limited | |
| Office & Mailing Address |
Marsh Canada Limited 550 Burrard Street, Suite 800 Vancouver, British Columbia Canada |
| Telephone | +1 (604) 685-3765 |
| Facsimile | +1 (604) 685-3112 |
General Information |
|
| Location | British Columbia is the western-most province of Canada (Pacific Standard Time). |
| Accessibility | Vancouver is serviced by regular daily flights from all parts of North America, Europe and the Far East. |
| Applicable Legislation | The Insurance (Captive Company) Act was passed in 1987. |
| Number of Captives | 17 as of 31-Dec-2008 |
| Regulatory Agency | Ministry of Finance & Corporate Relations Superintendent of Insurance and International Financial Business |
REGULATORY ISSUES
|
|
| Acceptable Insurance Subsidiaries | Single Parent and Association Captives |
| Acceptable Corporate Forms | Stock Corporation |
| Permitted Business | Property, Casualty and Liability lines of business. No personal lines. |
| Direct Insurance Permitted | Yes - However, B.C. captives are not admitted in other Canadian provinces, so generally the only direct premiums will be for local B.C. risk. Premiums from other parts of Canada are generally fronted. |
| Reinsurance Permitted | Yes |
| Policy Form and Rate Approval | Not required |
| Local Office Requirement | Registered office |
CAPITALIZATION & SOLVENCY REQUIREMENTS
|
|
| Minimum Paid-In Capital | $200,000 |
| Solvency Margin | The captive must maintain reserves of at least $100,000. In effect, the solvency requirement is Capital + Surplus of $300,000. |
| Premium Taxes | Assets must exceed liabilities. |
| Premium Taxes | B.C. Premium tax, generally 4%, is payable on direct written premiums on BC risks. Fronted premiums pay no B.C. premium tax but are subject to premium taxes in the jurisdiction of the fronted policy or policyholder - for other Canadian provinces this is generally 3%. Premiums from Ontario, Quebec and Newfoundland are also subject to Provincial sales tax 8%-12%. Reinsurance premiums from outside Canada will be subject to appropriate local taxes e.g., in the U.S. this may include premium taxes, self-procurement taxes and Federal Excise Tax. |
| Intercompany Loans | Permitted - the Captive Act is silent. |
| Investment Restrictions | There are no statutory restrictions on investments held by captives. |
| Taxation | British Columbia captives are Canadian residents for tax purposes and subject to full federal and provincial income tax - generally a combined rate of 44%. As an insurance company, a captive is allowed to deduct loss reserves on a discounted basis. Income generated from outside Canada may be exempt from the provincial portion of the tax but will still pay the 28% federal tax. In addition, Canada has a network of tax treaties with many countries. |
| Reporting Requirements | GAAP Audited Financials B.C. captives are required to undergo an independent audit each year and loss reserves must be substantiated by an actuarial certificate. |
Cayman Islands
| Head of Office | Clayton Price |
| Senior Team | Kieran O'Mahony Graham Manchester Kieran Mehigan |
| Office Address | Governors Square Building 4, 2nd Floor 23 Lime Tree Bay Avenue Grand Cayman, Cayman Islands |
| Mailing Address | P.O. Box 1051 Grand Cayman, Cayman Islands |
| Telephone | +1 (345) 914-5722 |
| Facsimile | +1 (345) 949-7849 |
Basic Information |
|
| Location | The Cayman Islands are a British overseas territory consisting of three small islands in the Western Caribbean, approximately 460 miles south of Miami. |
| Accessibility | The islands are accessible on regularly scheduled flights from Miami, Houston, Charlotte, Atlanta, Tampa, Orlando, London – UK, Kingston, Jamaica, Philadelphia, New York, Detroit and Toronto, Canada. |
| Applicable Legislation | The Insurance Law (2010 Revision); Insurance (Amendment) Bill, 2013 |
| Number of Captives | There are 759 active captives as of year end 2013 |
| Regulatory Agency | The Cayman Islands Monetary Authority (CIMA) |
REGULATORY ISSUES
|
|
| Acceptable Insurance Subsidiaries | Pure and Association Captives, Rent-a-Captive Vehicles, Deferred Variable Annuities, Special Purpose Vehicles, Segregated Portfolio Companies (SPCs), and Portfolio Insurance Companies (PICs) |
| Acceptable Corporate Forms | Stock or Mutual |
| Permitted Business | Non-Cayman Parent (including member companies) and Third party risk with approval |
| Direct Insurance Permitted | All Lines Permitted |
| Reinsurance Permitted | All Lines Permitted |
| Policy Form and Rate Approval | None required |
| Local Office Requirement | Registered office and licensed management company required Minimum of two directors required (no resident director required) |
CAPITALISATION & SOLVENCY REQUIREMENTS
|
|||
| Restricted Class B insurer | No requirements | ||
| Unrestricted Class B insurer | For a pure captive, Class B(i), the minimum capital is US$100,000 and there is a prescribed capital requirements as per below. CIMA reserves the right to approve various classes of assets. Maintain minimum capitalisation. Letters of credit or cash are acceptable to secure any excess surplus | ||
| Class B(i) | General Business Long-Term Composite |
US$100,000 US$200,000 US$300,000 |
PCR = MCR PCR = MCR PCR = MCR |
| Class B(ii) | General Business Long-Term Composite |
US$150,000 US$300,000 US$450,000 |
General:
Composite: amount required to support the general business plus MCR |
| Class B(iii) | General Business Long-Term Composite |
US$200,000 US$400,000 US $600,000 |
General:
Composite: amount required to support the general business plan MCR |
| Class C |
General Business Long-Term Composite |
US$500 US$500 US $500 |
General:PCR = MCR Long-term:PCR = MCR Composite:PCR = MCR |
| Solvency | The Head of Insurance Supervision has the authority to make regulations on liquidity margins and ratios. |
||
| Premium Taxes | No local premium tax is imposed. Premium for US risk may be subject to Federal Excise Tax of 4 percent on direct policies and 1 percent on reinsurance policies/policies of life insurance if the captive is viewed as an insurance company for US federal tax purposes. |
||
| Intercompany Loans | Parent loans are subject to approval of the Head of Insurance Supervision. Permission is not unreasonably withheld. Parent loans are generally permitted for large U.S. firms. Interest earned on the loan by the captive may be subject to 30 percent U.S. federal withholding tax. |
||
| Investment Restrictions | There are no formal investment restrictions. However, a captive's investment programme will be subject to the Head of Insurance Supervision's approval when the business plan is submitted. Also, the Head of Insurance Supervision must be notified of any significant alterations to the investment programme. |
||
| Taxation | No income tax, plus 20-year guaranteed tax-exempt status upon incorporation. |
||
| Reporting Requirements | Audited financials filed within six months of fiscal year end; IASO (Annual Statement of Operations) required within 14 days of calendar year end; Certified loss reserves required for long-term business (life and disability) only. |
||
Colorado
| Marsh USA, Inc. | |
| Head of Office | Julie Boucher |
| Sales Coordinators | Julie Boucher Chris Varin |
| Office Address | 100 Bank Street, Suite 610 Burlington, VT 05401 USA |
| Mailing Address | P.O. Box 530 Burlington, VT 05402-0530 USA |
| Telephone | +1 (802) 864-5912 |
| Facsimile | +1 (802) 859-3550 |
Basic Information |
|
| Location | Colorado is located in the western United States. |
| Accessibility | Frequent flights are available to Denver, Colorado from New York, Chicago and Los Angeles. |
| Applicable Legislation | Colorado became the first domicile in the United States to authorise the formation of captives with the passage of the Colorado Captive Insurance Company Act in 1972. |
| Number of Captives | 6 as of 31-Dec-2008 |
| Regulatory Agency | Colorado Division of Insurance, Department of Regulatory Agencies |
REGULATORY ISSUES
|
|
| Acceptable Insurance Subsidiaries | Pure and Group Captives. |
| Acceptable Corporate Forms | Any organisational structure. |
| Permitted Business | Only parent and its affiliate's risk. |
| Direct Insurance Permitted | All property/casualty lines include Automobile Liability and General Liability, Surety and Employee Benefits. No life, personal lines or third-party. |
| Reinsurance Permitted | All property/casualty lines including Auto Liability and General Liability, Surety and Employee Benefits. No life, personal lines or third-party. |
| Policy Form and Rate Approval | None required. |
| Local Office Requirement | Principal office and records in Colorado. Use of local manager. |
Capitalisation & Solvency Requirements
|
|||
| Entity | Minimum Capital |
Minimum Surplus |
Total Capitalisation (Cash or Letter of Credit) |
| Stock Pure Association |
$500,000* $500,000* |
||
| Mutual Association | $500,000* | ||
| *$300,000 of the total $500,000 capital and surplus must be under joint custody and control with the Colorado Division of Insurance. The remaining $200,000 is under sole custody and control of the captive. | |||
| Premium Taxes |
Premium tax on direct premiums |
Premium tax on |
|
| 0.500% on first $25 million 0.250% on next $25 million 0.010% thereafter (subject to a minimum of $5,000) |
0.25% on first $25 million 0.10% thereafter (subject to a minimum of $5,000) |
||
| Intercompany Loans | Pure captives may make loans to its parent if approved within its Plan of Operation. The loan amount must be within the maximum aggregate limit approved to be considered a permitted asset. Additionally the parent/recipient must: - have current assets exceeding current liabilities, including the loan as a current liability, on a non-consolidated basis with the captive, - provide an audited financial statement with an unqualified opinion, - report intangible assets, on a non-consolidated basis with the captive, in excess of its net worth. Under special conditions a departure from the above is allowed with prior written approval from the CDOI provided that the loan contain an automatic repayment schedule that is tied to a mutually agreed upon index, such as the rating of the parent. Generally, a loan must be in the form of a formal agreement with a provision that the loan will be repaid within 90 days of a request from the CDOI and contains specific maturity and interest provisions |
| Investment Restrictions | Admitted market restrictions apply to Group captives. No restrictions for Pure captives. |
| Taxation |
Income generated by the captive will be subject to the federal tax rate of the captive parent (assuming the parent is U.S. based); otherwise, the captive income will initially be subject to the U.S. federal rate and consolidated at the rate of the foreign parent. |
| Reporting Requirements | NAIC Blank and CPA audited statutory financial statements. Pure captives may file a short form version of NAIC Blank. A pure captive can also meet the NAIC Blank filing requirements by filing its audited financial statement no later than 60 days following the captive's fiscal year end. Certification that the captive maintains its principal and home office, and that the office performs a significant portion of the captive's operations in the state of Colorado. An audited financial statement must be prepared and filed no later than 150 days following the captive's fiscal year end. Colorado captives are required to undergo an independent audit each year and loss reserves must be substantiated by an actuarial certificate no later than 60 days following the captive's fiscal year end. Actuary's report must be filed no later than 90 days following the captive's fiscal year end. |
Connecticut
| Marsh USA, Inc. | |
| Head of Office | Art Koritzinsky |
| Sales Coordinators | Michael Serricchio |
| Office Address | Captive Solutions 501 Merritt 7 Norwalk, CT 06856-6010 |
| Telephone | (203) 229-6874 |
| Facsimile | (203) 229-6510 |
Basic Information |
|
| Location | Connecticut is located in the northeastern United States, close to both the New York and Boston metropolitan areas. |
| Accessibility | Direct air transportation to Hartford, CT is available from most major cities in the United States and international locations, and proximate to all major New York airports. |
| Applicable Legislation | Senate Bill 281 signed into law by Connecticut’s Gov. Jodi Rell in June 2008, effective January 1, 2008. |
| Regulatory Agency | Connecticut Insurance Department |
REGULATORY ISSUES
|
|
| Acceptable Licensed Entity Types | Pure captives, association captives, industrial insured captives, and risk retention groups. |
| Acceptable Organisational Forms | Stock, Member-managed Limited Liability Company, Mutual, Non-profit and Reciprocal. |
| Permitted Business | All commercial lines and most fronted personal lines. |
| Direct Insurance Permitted | Related and "Controlled Unaffiliated Business" as per statute. |
| Reinsurance Permitted | Related reinsurance permitted as well as "Controlled" Unrelated Risk on a fronted reinsurance basis. |
| Policy Form and Rate Approval | Not required |
| Local Office Requirement | Principal place of business. One board of directors meeting held annually in Connecticut. One resident director in Connecticut. |
Capitalisation & Solvency Requirements
|
|
| Entity | Minimum Capital and Surplus (Cash or Letter of Credit) |
| Pure Captive | $250,000 |
| Industrial Insured | $500,000 |
| Association Captive | $750,000 |
| Risk Retention Group | $1,000,000 |
Premium Taxes – Tax on Direct Premiums |
| 0.380% on first $20 million 0.285% on next $20 million 0.190% on next $20 million 0.072% thereafter Premium taxes are subject to a minimum of $7,500 per year and a maximum of $200,000 per year. |
| Investment Restrictions |
| No investment restrictions, except to the extent that such investment threaten the solvency or liquidity of the captive. Dividends require Regulator approval. |
| Taxation |
| Income generated by the captive will be subject to the federal tax rate of the captive parent (assuming the parent is U.S. based). Captive insurers are not subject to Connecticut state income tax and are excluded from Connecticut's state income tax calculations. |
Delaware
| Marsh USA, Inc. | |
| Head of Office | Julie S. Boucher, CPA |
| Sales Coordinator |
General Information |
|
| Location | Delaware is located in the Mid-Atlantic region of the United States. |
| Accessibility | Flights from major US cities and international locations are available to Philadelphia International Airport or Baltimore-Washington International Airport. Clients with private jets or similar aircraft can also take advantage of the various local airports located throughout the state. |
| Applicable Legislation | 144th General Assembly: House Bill #214 (2007); 143rd General Assembly: House Bill #218 (2005) |
| Regulatory Agency | Delaware Department of Insurance |
REGULATORY ISSUES
|
|
| Acceptable Insurance Subsidiaries | Pure, association, industrial insured, risk retention groups, sponsored, and special purpose vehicles. |
| Acceptable Corporate Forms | Stock or a non-stock company, or may be formed as a limited liability company, partnership, limited partnership or statutory trust. |
| Permitted Business | All classes except for personal motor vehicle or homeowner's insurance coverage. |
| Direct Insurance Permitted | Related and “controlled” unrelated risks. |
| Reinsurance Permitted | Related and “controlled” unrelated risks. |
| Policy Form and Rate Approval | Not required. |
| Local Office Requirement | Principal place of business in Delaware Annual board of directors meeting in Delaware Registered agent in Delaware |
Capitalisation & Solvency Requirements
|
|
| Pure Captive | $250,000 |
| Association Captive | $750,000 |
| Industrial Insured Captive | $500,000 |
| Risk Retention Group | $1,000,000 |
| Sponsored Captive | $500,000 |
| Special Purpose Captive | $250,000 or other amount determined by the Commissioner |
| Special Purpose Financial Captive | $500,000; if not also a sponsored captive then $250,000 |
| Minimum capital and surplus shall be maintained in Delaware and may be in the form of cash, an irrevocable letter of credit issued by a financial institution chartered by or licensed or otherwise authorised to do banking business in Delaware, or by any other financial institution approved by the Commissioner, or such other assets as may be approved by the Commissioner. | |
| Premium Taxes | Direct Premiums: The total direct premium tax maximum is $125,000. Reinsurance Premiums: The total direct premium tax maximum is $75,000. |
| Investment Restrictions | Pure captives, industrial insured and special purpose financial captives are not subject to restrictions on allowable investments, as determined by the Commissioner. Association captives, special purpose captives and risk retention groups must have their investments approved by the Commissioner. |
| Reporting Requirements | Captive insurance companies are not required to file annual reports to the Commissioner. Each captive company is required to file a report of financial condition by March 1 of each year. |
Hawaii
| Head of Office | Scot Sterenberg |
| Senior Team | Toni Kanehira |
| Office Address | 745 Fort Street, suite 1100 Honolulu, HI 96813-3800 USA |
| Mailing Address | P.O. Box 4238 Honolulu, HI 96812 USA |
| Telephone | +1 (808) 585-3500 |
| Fascimile | +1 (808) 585-3513 |
Basic Information |
|
| Location | Hawaii is a group of islands located in the Pacific Ocean approximately 2,500 miles from the West Coast of the United States mainland. |
| Accessibility | Direct flights are available to Hawaii from many U.S. cities, including Chicago, Dallas, Detroit, Los Angeles, New York, Las Vegas, Phoenix, Portland, San Francisco and Seattle. Direct flights are also available from several major Japanese cities. |
| Applicable Legislation | Act 253, effective July 1, 1987, subsequently revised and re-codified effective July 1, 1988 as Article 19 of Chapter 431, Hawaii Revised Statutes. |
| Number of Captives | As of December 2014, there were 194 captives in the domicile. |
| Regulatory Agency | Department of Commerce & Consumer Affairs – Insurance Division, Captive Administration Branch |
REGULATORY ISSUES
|
|
| Acceptable Insurance Subsidiaries | Class 1: pure captive that only writes business as a reinsurer Class 2: pure captive that is not a Class 1 (can write direct or reinsurance business) Class 3: association captive or risk retention group Class 4: leased capital facility (protected cell captive) Class 5: reinsurance or excess insurance company |
| Acceptable Corporate Forms | Stock, mutual, or reciprocals |
| Permitted Business | All Property and Casualty lines; Personal Lines under certain circumstances upon approval of the Commissioner |
| Direct Insurance Permitted | All permitted business |
| Reinsurance Permitted | Any line of insurance, upon approval of the Commissioner |
| Policy Form and Rate Approval | Not required |
| Local Office Requirement | Principal place of business At least one Board of Directors meeting held annually in Hawaii (can be by teleconference) |
Capitalisation & Solvency Requirements
|
|
| Minimum Capital | Class 1: $100,000 Class 2: $250,000 Class 3: $500,000 Class 4: $1,000,000 Class 5: Not defined by Statute Minimum capital and surplus is determined on a case-by-case basis. The Commissioner reviews the proposed captive operations and determines the appropriate level or capitalisation. The amounts listed above are the minimum statutory levels. The captive’s minimum statutory capital and surplus must be maintained in the form of cash, public obligations, irrevocable letter of credit issued by a bank chartered in the state of Hawaii or a member bank of the Federal Reserve System and approved by the Commissioner, or another investment approved by the Commissioner. |
| Premium Taxes | Premium taxes are imposed on gross direct written premium received on risks located in Hawaii or those risks located outside of Hawaii which have not been taxed at source. Premium taxes are waived on reinsurance premium assumed. The premiums tax is in lieu of all other state taxes except real and personal property taxes. Tax Rate 0.25% on first $25m 0.15% on next $25m 0.05% thereafter uo to $200m Maximum premiums tax is $200,000 Premium tax is not assessed on reinsurance premiums assumed by the captive or on premiums that have been previously taxed in another jurisdiction. |
| Intercompany Loans | Subject to the approval of the Insurance Commissioner |
| Investment Restrictions | Funds must be invested in accordance with regulations governing all Hawaii insurers, except that pure captives may obtain approval from the Commissioner for investments not specified in the insurance code. Pure captives may invest in accordance with a strategic investment policy approved by the captive's Board of Directors and the Insurance Commissioner. Investment guidelines are located in Article 19 of Article 6 Chapter 431 of the Hawaii Revised Statutes. |
| Taxation | Income generated by the captive will be subject to the federal tax rate of the captive parent (assuming the parent is U.S. based); otherwise, the captive income will initially be subject to the U.S. federal rate and consolidated at the rate of the foreign parent. The State of Hawaii does not impose an income tax or excise tax on Hawaii domiciled captives. |
| Reporting Requirements | Audited financials Certified loss reserves NAIC statutory annual statement (RRG and Association Captives only) |
Maine
| Head of Office | Arthur Koritzinsky |
| Sales Coordinator | Arthur Koritzinsky |
| Office & Mailing Address | 1166 Avenue of the Americas 39th Floor New York, NY 10036 USA |
| Telephone | (212) 345-3664 |
| Fascimile | (212) 345-7316 |
Basic Information |
|
| Location | Maine is located in the Northeastern United States. |
| Accessibility | Maine is accessible on regularly scheduled flights from many locales throughout the United States. |
| Applicable Legislation | Sec. 1.24-A Maine Revised Statutes Annotated, Chapter 83 |
| Regulatory Agency | Superintendent of Insurance, Maine Bureau of Insurance |
REGULATORY ISSUES
|
|
| Acceptable Insurance Subsidiaries | Pure, Association & Risk Retention Groups |
| Acceptable Corporate Forms | Stock or Mutual |
| Permitted Business | Direct & Reinsurance |
| Direct Insurance Permitted | Casualty (Excluding WC) Marine P&I, Property, Surety, Title & Affiliated Credit Life and Credit Health |
| New Amendments | Allowance of Pure Non-Profit Captive Insurance Companies |
| Policy Form and Rate Approval | Not required |
| Local Office Requirement | Principal office in Maine Annual Directors meeting in Maine Use of local managers required One director must be a Maine resident |
Capitalisation & Solvency Requirements
|
|||
| Minimum Capital |
Minimum Surplus |
Total Capitalisation |
|
| Stock - Pure |
$100,000 | $150,000 | $250,000 |
| Stock - Industrial Insured |
$200,000 | $300,000 | $500,000 |
| Stock - Association |
$400,000 | $350,000 | $750,000 |
| Mutual - Industrial Insured |
$500,000 | $500,000 | |
| Mutual - Association |
$750,000 | $750,000 | |
| Premium Taxes | Premium tax on direct premiums 0.375% on first $20 million 0.275% on next $20 million 0.175% on next $20 million 0.075% thereafter (subject to a minimum of $4,000) |
| Premium tax on reinsurance premiums 0.215% on first $20 million 0.125% on next $20 million 0.050% on next $20 million 0.025% thereafter (subject to a minimum of $4,000) |
|
| Investment Restrictions | None, unless solvency is threatened |
| Taxation | Income generated by the captive will be subject to the federal tax rate of the captive parent (assuming the parent is U.S. based); otherwise, the captive income will initially be subject to the U.S. federal rate and consolidated at the rate of the foreign parent. |
| Reporting Requirements | GAAP Annual NAIC convention statement Audited Financials (Prior to 7/1) Certified Loss Reserves |
| Regulatory & Incorporation Expenses |
$1,000 Filing Fee $500 Maine Redomestication Fee $100 Issuance Annual Fee |
Nevada
| Marsh Management Services Inc. | |
| Head of Office | Ellen Charnley |
| Sales Coordinator | Rae Brown |
| Office & Mailing Address | 7251 W Lake Mead Blvd Ste 401 Las Vegas NV 89128 USA |
| Telephone | (602)-337-6247 |
| Fascimile | (602)-337-6399 |
Basic Information |
|
| Location | Nevada is located in the southwestern area of the United States. |
| Accessibility | Direct flights are available to Reno, Nevada and Las Vegas, Nevada from most U.S. cities |
| Applicable Legislation | NAC 694C.010 |
| Number of Captives | There are 160+ active captives as of year-end 2014. There are 160+ active captives as of year-end 2014 |
| Regulatory Agency | Nevada Division of Insurance Captive Program 1818 E. College Parkway, Ste-103 Carson, City, NV 89706 |
REGULATORY ISSUES
|
|
| Acceptable Insurance Subsidiaries | Agency captives, alien captive insurers, branch, association, pure/single parent, rental, sponsored/series LLC, protected cell, risk retention group |
| Acceptable Corporate Forms | Stock, mutual, reciprocal, nonprofit, or limited liability company |
| Permitted Business | A captive insurer shall not directly provide personal motor vehicle or homeowners' insurance coverage, or any part thereof, shall not accept or cede reinsurance, may provide workers' comp insurance provided pursuant to a programme of self-funded insurance of its parent and affiliated companies if: (1) the parent or affiliated company which is providing the self-funded insurance is certified by the commissioner, or (2) the programme of self-funded insurance is otherwise qualified pursuant to, if being written in the state, or in compliance with, the laws of the state in which the insurance is transacted |
| Direct Insurance Permitted | All permitted business |
| Reinsurance Permitted | A captive may provide reinsurance on risks ceded by any other insurer |
| Policy Form and Rate Approval | Not required |
| Local Office Requirement | Permissible lines of business with underwriting authority Payment of fees At least one Director meeting annually in Nevada Maintain principal place of business in Nevada Nevada captive manager Books and records in Nevada Minimum capital and surplus Resident statutory agent Financial reporting requirements |
Capitalisation & Solvency Requirements
|
|
| Entity | Required minimum capital and surplus in cash or letter of credit: |
| Pure Captive | $200,000 |
| Association Captive | $500,000 |
| Agency Captive | $600,000 |
| Rental Captive | $800,000 |
| Sponsored Captive | $500,000 |
| Solvency | |
| No formal requirement |
| Tax on Direct Net Premium: | .4% on 1st $20mm; .2% on next $20mm; .075% thereafter |
| Reinsurance premium is subject to tax of: | .225% on 1st $20mm; .0150% on next $20mm; .025% thereafter |
| Intercompany Loans | A pure captive insurer may make a loan to its parent or affiliated company if the loan: (a) Is first approved in writing by the Commissioner; (b) Is evidenced by a note that is in a form that is approved by the Commissioner; and (c) Does not include any money that has been set aside as capital or surplus as required by subsection 1 of NRS 694C.250. |
| Investment Restrictions | A pure captive insurance company or industrial insured captive insurance company is not subject to any restrictions on allowable investments contained in the Insurance Code. The commissioner may prohibit or limit an investment that threatens the solvency or liquidity of the company. |
| Taxation | Income generated by the captive will be subject to the federal tax rate of the captive parent (assuming the parent is U.S. based); otherwise, the captive income will initially be subject to the US federal rate and consolidated at the rate of the foreign parent. No Nevada State Income tax applies to captive profits. |
New York
| Head of Office | Nisala Weerasooriya |
| Senior Team | Gemma Mah |
| Office & Mailing Address | 48 South Service Road Suite 310 Melville, NY 11747-2335 |
| Telephone | +1 (631) 577-0500 |
| Fascimile | +1 (212) 948-4192 |
General Information |
|
| Location | New York is located in the northeastern United States. |
| Accessibility | New York is accessible on frequent flights from numerous global locales. |
| Applicable Legislation | Article 70 of the New York Insurance Law |
| Number of Captives | 64 as of March 31, 2015 |
| Regulatory Agency | Superintendent of Financial Services, New York State Department of Financial Services |
REGULATORY ISSUES
|
|
| Acceptable Insurance Subsidiaries | Pure and Group Captives |
| Acceptable Corporate Forms | Stock or Mutual Insurer |
| Permitted Business | Direct and Reinsurance |
| Direct Insurance Permitted | Related and "Controlled" Unrelated Risk |
| Reinsurance Permitted | Related and "Controlled" Unrelated risks. Third party business not exceeding 50% of Gross Written Premium with approval of Superintendent. |
| Policy Form and Rate Approval | Not required |
| Local Office Requirement | Principal office in New York Annual Directors meeting in New York Minimum of three Directors (two must be New York residents) Use of local manager required |
Capitalisation & Solvency Requirements
|
|||
| Minimum Stock |
Minimum Surplus |
Minimum Capitalisation | |
| Stock | |||
| Pure Group |
$100,000 $200,000 |
$150,000 $300,000 |
$250,000 $500,000 |
| Mutual | |||
| Pure Group |
$250,000 $500,000 |
$250,000 $500,000 |
|
The above needs to be in cash, letter of credit, or in investments such as U.S. Government or New York State bonds.
| Solvency Margin | No formal solvency margin exists, however a general benchmark is minimum of $1 surplus for every $5 of net written premium. The parent (owner) of a New York captive must have a minimum net worth of $100 million. |
| Premium Taxes | Annual Assessment (Sec.206 of New York State Financial Services Law) – based upon direct premiums for risks located in New York only (non-New York & reinsurance premiums are not used in calculating the assessment). The estimated rate is approximately .89% of New York direct premiums written. |
| Premium tax on direct premiums |
0.400% on first $20 million 0.300% on next $20 million 0.200% on next $20 million 0.075% thereafter (subject to a minimum of $5,000 combined direct and reinsurance) |
| Premium tax on reinsurance premiums | 0.225% on first $20 million 0.150% on next $20 million 0.050% on next $20 million 0.025% thereafter (subject to a minimum of $5,000 combined direct and reinsurance) |
| Intercompany Loans | The captive may lend funds in excess of the minimum capitalisation requirements subject to regulatory approval. |
| Investment Restrictions | None, unless solvency is threatened |
| Taxation | Income generated by the captive will be subject to the federal tax rate of the captive parent (assuming the parent is U.S. based); otherwise, the captive income will initially be subject to the US federal rate and consolidated at the rate of the foreign parent. No New York State Income tax applies to captive profits if the captive is an “insurance company for federal income tax purposes.” |
| Reporting Requirements | New York Captive Insurance Company Annual Statement Audited GAAP Financials |
South Carolina
| Head of Office | Gavin Foggon |
| Senior Team | Linda Dana |
| Office Address | 151 Meeting Street Suite 301 Charleston, SC 29401 USA |
| Mailing Address | Marsh Management Services Inc. 151 Meeting Street Suite No. 301 Charleston, SC 29401 USA |
| Telephone | +1 (843) 577-1026 |
| Fascimile | +1 (843) 577-1027 |
General Information |
|
| Location | South Carolina is located in the southeastern United States. |
| Accessibility | Frequent direct air transportation to Charleston, South Carolina is available by direct flight from Atlanta, Baltimore, Charlotte, Chicago, Dallas, Detroit, Houston, Miami, Nashville, Newark, New York, Orlando, Philadelphia, and Washington, D.C. |
| Applicable Legislation | The South Carolina Code of Laws, Title 38-90 |
| Number of Captives | 149 as of year-end 2012 |
| Regulatory Agency | South Carolina Department of Insurance, Alternative Risk Transfer Services Division |
REGULATORY ISSUES
|
|
| Acceptable Insurance Subsidiaries | Pure, Industrial Insured (including Risk Retention Groups), Special Purpose Captive, Special Purpose Financial Captive, Association, Sponsored and Branch |
| Acceptable Corporate Forms | Stock, Mutual, Reciprocal and Limited Liability Company |
| Permitted Business | All Commercial Lines |
| Direct Insurance Permitted | Related and "Controlled" Unrelated Risk |
| Reinsurance Permitted | Related and "Controlled" Unrelated Risk |
| Policy Form and Rate Approval | Not required |
| Local Office Requirement | Principal Place of Business One Board of Directors Meeting Annually in South Carolina One Resident Director |
Capitalisation & Solvency Requirements
|
|||
| Entity | Minimum Capital |
Minimum Surplus |
Total Capitalisation (Cash or Letter of Credit) |
| Stock Pure Industrial Insured and RRG's |
$100,000 $200,000 |
$150,000 $300,000 |
$250,000 $500,000 |
| Association | $400,000 | $350,000 | $750,000 |
| Mutual Industrial Insured Association |
$500,000 $750,000 |
$500,000 $750,000 |
|
| Reciprocal | $1,000,000 | $1,000,000 | |
| Solvency | |
| No formal solvency requirements exist, however a general benchmark is minimum of $1 of surplus for every $3-$5 of net written premium, depending on financial strength of, and risk retained by, the captive. Also, Risk Retention Groups are subject to minimum capitalisation of $500,000. |
Premium Taxes
|
|
| Premium tax on direct premiums | 0.400% on first $20 million 0.300% on next $20 million 0.200% on next $20 million 0.075% thereafter (subject to a minimum of $5,000 combined direct and reinsurance premiums) (subject to a maximum of $100,000 combined direct and reinsurance premiums) |
| Premium tax on reinsurance premiums | 0.225% on first $20 million 0.150% on next $20 million 0.050% on next $20 million 0.025% thereafter (subject to a minimum of $5,000 combined direct and reinsurance premiums) (subject to a maximum of $100,000 combined direct and reinsurance premiums) |
| Intercompany Loans | Captives may lend funds in excess of the minimum capitalisation requirements subject to regulatory approval. |
| Investment Restrictions | Admitted market restrictions apply to Association captives and RRG's. No restrictions for Pure or non-RRG Industrial Insureds. |
| Taxation | Income generated by the captive will be subject to the federal tax rate of the captive parent (assuming the parent is U.S. based); otherwise, the captive income will initially be subject to the US federal rate and consolidated at the rate of the foreign parent. No South Carolina State Income tax applies to captive profits. |
| Reporting Requirements | Pure and Industrial Insured – GAAP Financial Statements, South Carolina Annual Statement Association and RRG – NAIC Blank Audited Financials Certified Loss Reserves |
Utah
| Head of Office | Arthur Koritzinsky |
| Sales Coordinator | Brandy Alderson |
| Office Address | Marsh Management Services Inc. Captive Solutions 15 W. South Temple Gateway Tower West Salt Lake City, UT 84101 |
| Telephone | (801) 533-3646 |
| Fascimile | (801) 533-3610 |
General Information |
|
| Location | Utah is located in the western United States, west of Colorado and east of Nevada. |
| Accessibility | Direct flights are available to Salt Lake City from most U.S. cities. |
| Applicable Legislation | Title 31A Chapter 37 – Captive Insurance Companies Act |
| Number of Captives | There are 395 captives as of year-end 2014. (495 if counting cell captives) |
| Regulatory Agency | Utah Insurance Department, Captive Insurance Division 3110 State Office Building Room Salt Lake City, UT 84114-6901 |
REGULATORY ISSUES
|
|
| Acceptable Licensed Entity Types | Single parent/pure, branch, special purpose captive, association, sponsored/segregated cell/protected cell, industrial insured, risk retention group, reinsurance captive. |
| Acceptable Organisational Forms | Stock, mutual, reciprocal, nonprofit, or limited liability company |
| Permitted Business | When permitted by its articles of incorporation or charter, a captive insurance company may apply to the commissioner for a certificate of authority to do ALL lines of insurance allowed by the insurance code, EXCEPT punitive damages, workers compensation insurance and personal motor vehicle or homeowners insurance, or any component of these coverages. Reference Title See U.C.A Section 31A-37-202(1)(a) and (b)(iv). A pure captive may only insure the risks of its parent, affiliates, or controlled unaffiliated business. Reference Title See U.C.A Section 31A-37-202(1)(b)(i) An association captive may only insure the risks of association member organisations and affiliates of the association member organisations. Reference Title See U.C.A Section 31A-37-202(1)(b)(ii). An industrial insured may only insure risks of the industrial insureds that comprise the industrial insured group and affiliates of the industrial insureds that comprise the industrial insured group. Reference Title See U.C.A Section 31A-37-202(1)(b)(iii) |
| Direct Insurance Permitted | All permitted business. |
| Reinsurance Permitted | A captive insurance company may provide reinsurance on risks ceded by any other insurer |
| Policy Form and Rate Approval | Not required |
| Local Office Requirement | Obtain from the commissioner a valid Certificate of Authority specifying the types of insurance authorised (i.e. go through the licensing process). Hold at least once each year in Utah a board of directors meeting, or in the case of a reciprocal insurer, a subscriber's advisory committee meeting. Maintain the principal place of business of the captive in Utah. Appoint a resident registered agent to accept service of process and act on behalf of the captive in Utah. Renew the Certificate of Authority annually by July 1 of each year. Comply with all other applicable statutes and rules. |
Capitalisation & Solvency Requirements
|
|
| Pure captive (Stock) | $250,000 |
| Association captive (Stock/Mutual) | $750,000 |
| Association captive (Reciprocal) | $1,000,000 |
| Industrial Insured (Stock/Mutual) | $500,000 |
| Industrial Insured (Reciprocal) | $1,000,000 |
| Sponsored Captive | $1,000,000 |
| Reinsurance Company | At least $300,000,000 or 10% of the reserves of the reinsurance parent, whichever is greater. |
| Premium Taxes |
|
| Annual license fee of $5,250. No premium tax. |
| Intercompany Loans |
|
| A Pure Captive is the only type of captive that may make loans to the parent company or an affiliate of the captive. However, such loans by a Pure Captive may not be made from the paid-in capital or the free surplus that is required by U.C.A. Section 31A-37-204(1) and U.C.A. Section 31A-37-205(1), respectively. |
| Investment Restrictions |
|
| A Pure Captive has no investment restrictions, except that the Department will not allow investments that threaten the solvency of the captive. Each captive insurer must file a description of their investment strategy as part of the initial application. The captive must notify the Department of any future changes to that investment strategy. |
| Taxation | |
| No Utah state income tax applies to captive profits. |
Vermont
| Head of Office | Julie Boucher |
| Senior Team | Chris Varin Marcy Waterfall Edward Precourt |
| Office Address | 100 Bank Street, Suite 610 Burlington, VT 05401 USA |
| Mailing Address | P.O. Box 530 Burlington, VT 05402-0530 USA |
| Telephone | +1 (802) 864-5599 |
| Fascimile | +1 (802) 859-3599 |
General Information |
|
| Location | Vermont is located in the northeastern United States. |
| Accessibility | Direct air transportation to Burlington, Vermont is available from several major cities. |
| Applicable Legislation | The Vermont Special Insurer Act |
| Number of Captives | 984 licensed (588 active) as of 31 Dec 2012 |
| Regulatory Agency | Vermont Department of Financial Regulation |
REGULATORY ISSUES
|
|
| Acceptable Licensed Entity Types | Pure, Industrial Insured, Risk Retention Group, Association, Sponsored and [ERISA benefits] Branch. |
| Acceptable Organisational Forms | Stock, Limited Liability Company, Mutual, Non-profit and Reciprocal. |
| Permitted Business | All Commercial Lines and most [fronted] personal lines. |
| Direct Insurance Permitted | Related and "Controlled" Unrelated Risk |
| Reinsurance Permitted | Related and "Controlled" Unrelated Risk. |
| Policy Form and Rate Approval | Not required |
| Local Office Requirement | Principal place of business One Board of Directors meeting annually in Vermont One resident director Approved management company |
Capitalisation & Solvency Requirements
|
|
| Minimum Capital and Surplus | |
| Pure | $250,000 |
| Industrial Insured | $500,000 |
| Risk Retention Group | $1,000,000 |
| Association | $500,000 |
| Sponsored | $500,000 |
| Branch | $250,000 |
| Solvency | |
| No formal solvency requirements exists, however a general benchmark is minimum of $1 of surplus for every $5 of net written premium and premium and surplus sufficient to pay at least one full limit loss for pure captives and two full limit losses for Group. |
Premium Taxes
|
|
| Premium tax on direct premiums | 0.380% on first $20 million 0.285% on next $20 million 0.190% on next $20 million 0.072% thereafter |
| Premium tax on reinsurance premiums | 0.214% on first $20 million 0.143% on next $20 million 0.048% on next $20 million 0.024% thereafter |
| 1) Premium taxes are subject to an overriding minimum of $7,500 per year and an overriding maximum of $200,000 per year. 2) Premium for contracts providing direct reimbursement for losses incurred under qualified self-insured workers' compensation programmes are taxed at assumed rates. | |
| Intercompany Loans | Pure captives may lend funds in excess of the minimum capitalisation requirements ($250,000) subject to regulatory approval. Approval is generally granted only for parents having a minimum of $100 million in equity and an investment grade debt rating. Some rare exceptions are made to these guidelines. |
| Investment Restrictions | Admitted market restrictions apply to RRGs unless exception granted. No specific restrictions for Pure or non-RRG Industrial Insured's. |
| Taxation | Income generated by the captive will be subject to the federal tax rate of the captive parent (assuming the parent is U.S. based); otherwise, the captive income will initially be subject to the US federal rate and consolidated at the rate of the foreign parent. No Vermont State Income tax applies to captive profits. |
| Reporting Requirements | Pure and Industrial Insured – GAAP Financial Statements, Vermont Annual Statement Association and RRG – NAIC Blank Audited Financials Certified Loss Reserves |