STATE
CAPTIVE TAX RATE
MINIMUM CAPITALISATION RATE
LICENSING FEES
INDUSTRY SECTORS BEST REPRESENTED IN THE DOMICILE
NUMBER OF SINGLE- PARENT CAPTIVES
ALABAMA ALA. Code 27-31B-16
Pure- $250,000; Association- $750,000; Industrial Insured- $500,000; Sponsored- $1,000,000
ARKANSAS See Ark. Code Ann. § 23-63-1614.
Please see Ark. Code Ann. § 23-63- 1604 and § 23-63-1605 for capital and surplus requirements.
$200 application fee and $300 licence fee.
Original application fee is $500, Issue License fee of $300. There is also the additional cost of an actuarial review (See Rule 73). License Renewal Fee $300.
ARIZONA None
Arizona’s minimum capitalisation rate is as follows: Pure Captive -$250,000; Association or Industry Group - $500,000; Risk Retention Group - $500,000; Agency Captive - $500,000; Protected Cell - $500,000 and Pure Reinsurers - one-half of the above indicated amounts
Arizona’s licensing fee requirements are as follows: Initial License - $1,000; Examiner Revolving Fund - $100; Original Charter Documents - $75; Articles of Incorporation - $60 (payable to AZ Corporation Commission); and Captive Renewal License - $5,500.
CONNECTICUT Tax on direct premium: 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.
DELAWARE Direct premium: two-tenths of 1% with a minimum tax of $5,000 & maximum of $125,000. Assumed reinsurance: one-tenth of 1% with a minimum tax of $5,000 and a maximum of $75,000.
DISTRICT OF COLUMBIA
.250% on the first $25 million of direct premium; .015% on $25 million to $50 million of direct premium; .050% over $50 million of direct premium. For RRGs licensed as captives: .380% on the first $20 million of net direct premium; .250% on $20 million to $40 million of net direct premium; and .180% over $40 million of net direct premium.
Minimum capital and surplus requirements: Pure captive: $250,000; Association captive: $750,000; Industrial Insured captive: $500,000; Risk Retention Group: $1,000,000
$250,000
Non-refundable application fee of $800. Additional costs associated with processing the application may be billed. Fee for initial licence $375. Annual licence renewal fee: $375.
Application fee: $200; processing fee: $3,000; and annual renewal fee of $300.
Diversified Seven
NUMBER OF GROUP CAPTIVES
Three
N/A
None
None
Healthcare and Social Assistance, Construction, and Finance and Insurance comprise 66% of our captives maintaining an active licence. Transportation and Manufacturing comprise another 15% of our captives.
We have 74 single- parent captives as of December 31, 2010.
We have 18 RRGs, 2 Industry Groups and 2
Association Captives as of
December 31, 2010.
N/A N/A N/A
Closely held businesses
73
22
Pure: $100,000 capital and $150,000 surplus; association: $100,000 capital and $300,000 surplus; rental: $100,000 capital and $300,000 surplus; agency: $100,000 capital and $300,000 surplus; protected cells: amount to be determined by the Commissioner.
$300 initial licence fee at time of application, and $300 annual licence renewal fee.
Nursing homes and physicians.
32
36
HAWAII
0.25% on premiums from $0 up to $25 million; 0.15% on premiums from $25 million up to $50 million; 0.05% on premiums from $50 million up to $250 million; 0.00% on premiums of more than $250 million. No minimum premium tax. Maximum premium tax of $200,000. No taxation of captive premiums if premiums were previously subjected to tax in jurisdiction where underlying risk is located, or on reinsurance premiums assumed by captive.
Class 1 - $100,000; Class 2 - $250,000; Class 3 - $500,000; Class 4 - $1,000,000; and Class 5 - as determined by Insurance Commissioner.
Initial Incorporation Fee: $50; Annual Business Registration Fee: $15; Captive Application Fee: $1,000; Captive Annual License Fees: Class 1 and 2 - $300, Class 3 - $500 and Class 4 and 5 - $1,000
Captive owners by industry groups - construction/ real estate - 49;
telecommunications and manufacturing - 30; healthcare - 28; retail and other services - 25; financial services - 19; and transport and energy - 17. A total of 168 captives.
149
19
US Captive . April 2011 53
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