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STATE


CAPTIVE TAX RATE


MINIMUM CAPITALISATION RATE


LICENSING FEES


INDUSTRY SECTORS BEST REPRESENTED IN THE DOMICILE


NUMBER OF SINGLE- PARENT CAPTIVES


ILLINOIS Same tax as any domestic insurer. No less than $2 million $7,000 N/A One


NUMBER OF GROUP CAPTIVES


None


KANSAS


2% of premiums received, subject to certain credits


Pure captive: capital - $100,000 and surplus - $150,000; Industrial Insured: capital - $200,000 and surplus - $300,000; Mutual Industrial Insured: surplus - $500,000


KENTUCKY Captive insurer tax paid in lieu of other state taxes, on or before March 1 in each year; a tax at the rate 0.4% on the first $20 million; 0.3% on the next $20 million and 0.075% on each dollar thereafter; minimum tax rate of $5,000. For assumed see KRS 304.49-220.


LOUISIANA


Same as other domestic insurers. Tax Charts located at www.ldi.state. la.us/FinancialSolvency/Surplus_ Lines/admitted.html


MAINE


Premium tax repealed. Recent legislation provides for an income tax and also the eligibility to receive a 100% Maine Corporate Tax credit for 10 years (see above).


MICHIGAN Michigan does not have a captive tax rate. Michigan does have a renewal fee that is based on premium volume.


Pure, special purpose $250,000; all others $500,000


$500 Exam/Process and $110 Certificate of Registration


N/A


One


None


$600


Diversified


115


12


$1,000,000


$2,500


N/A


One


None


$250,000 - pure captive; $750,000 - association captive insurance co.; $500,000 - industrial insured captive insurance co.; $500,000 - sponsored captive insurance co.


Pure captive $150,000; Association captive insurance company incorporated as a stock insurer or organised as a limited liability company $400,000; Association captive insurance company incorporated as a mutual insurer $750,000; Industrial insured captive insurance company incorporated as a stock insurer or organised as a limited liability company $300,000; Sponsored captive insurance company $500,000; Non-profit pure captive insurance company $250,000; SPFC $250,000


MISSOURI


Direct premium: $0-20 million – 0.38%, assumed premium - 0.214%; direct premium: $20-40 million - 0.285%, assumed premium - 0.143%; direct premium: $40-60 million - 0.190%, assumed premium - 0.048% and direct premium $60+ million - 0.072%, assumed premium - 0.024%. Minimum tax $7,500, maximum $200,000


MONTANA


Direct Writings - 4% on first 20 million of premium, .3% on subsequent writings. Premium tax is capped at $100,000. Reinsurance: .225% on first 20 million assumed, .15% on next 20 million assumed, .05% on subsequent assumptions. Premium tax is capped at $100,000.


Combined capital and surplus: pure - $250,000; industrial insured - $500,000; association - $750,000; branch - $250,000 and special purpose life reinsurance - $250,000


$1,000 Application Fee; $100 Annual Renewal Fee; $100 Annual Statement Fee and $350 Reinstatement Fee


$10,000


N/A


None


One


Four


One


$7,500 licensing fee which is fully deductible from premium tax.


Life insurance, manufacturing, healthcare


10


One


Pure captives - $250,000; Reinsurance captives - $125,000; Association Captives - $750,000; Industrial Insured and Risk Retention Groups - $500,000; Protected cell captive insurance company $500,000 or $250,000 if the core does not assume risk, if risk in cells is homogeneous, and if there are less than 10 cells.


$200 initial licence fee, $300 annual renewal fee.


Medmal, contractors’ liability, and general purpose.


53


15 (risk retention groups)


US Captive . April 2011 55


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