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US CAPTIVE DOMICILE ROUND-UP STATE CAPTIVE TAX RATE MINIMUM CAPITALISATION RATE


LICENSING FEES INDUSTRY SECTORS BEST REPRESENTED IN THE DOMICILE


NEVADA


Two-fifths of 1% on the first $20 million of net direct premiums; one-fifth of 1% on the next $20 million of net direct premiums; and seventy- five thousandths of 1% on each additional dollar of net direct premiums. Tax at a rate of: two hundred twenty-five thousandths of 1% on the first $20 million of revenue from assumed reinsurance premiums; one hundred fifty thousandths of 1% on the next $20 million of revenue from assumed reinsurance premiums; and twenty-five thousandths of 1% on each additional dollar of revenue from assumed reinsurance premiums.


NEW JERSEY .38% of first $20 million; .285% of next $20 million; .19% of next $20 million; .072% each dollar thereafter on direct premiums, lesser similar percentages on assumed reinsurance


Licensing fees: $200 initial licence fee, $300 annual renewal fee.


$250/$300


NUMBER OF SINGLE- PARENT CAPTIVES


90


NUMBER OF GROUP CAPTIVES


30


Pure captive $250,000; association captive $750,000; industrial insured captive $500,000; sponsored captive $500,000. Commissioner may prescribe additional capital and surplus based on type, volume and nature of insurance business transacted.


NEW YORK Direct Business - premiums: $0-20 million, section 1502-b tax rate: .4%; premiums: $20-40 million, section 1502b tax rate: .3%; premiums: $40-60 million, section 1502b tax rate: .2%; greater than $60 million, section 1502b tax rate: 0.75%. Reinsurance assumed - premiums: $0-20 million, section 1502-b tax rate: .225%; premiums: $20-40 million, section 1502b tax rate: .15%; premiums: $40-60 million, section 1502b tax rate: .05%; greater than $60 million, section 1502b tax rate: 0.25%.


OKLAHOMA On a sliding scale of .075% to .40% of Net Direct Written Premium


SOUTH DAKOTA


SOUTH CAROLINA


One-quarter percent, minimum $5,000


Direct premiums written: 0.4% of first $20 million; 0.3% on each dollar after that up to a maximum of $100,000. Assumed reinsurance written: 0.225% of first $20 million; 0.150% of next $20 million; 0.050% next $20 million; and 0.025% on each dollar after that up to a maximum of $100,000.


TENNESSEE 1%


Capitalisation: $250,000 for pure captives and $500,000 for group captives.


Legislation states Commissioner MAY establish by regulation fees necessary for administration of this act.


An incorporation fee is charged. The fee is based on a percentage of the par value of the stock.


To be determined


N/A


N/A


Real estate


46


None


$500,000 $200,000 $250,000 for a pure captive.


$300 $500


$300 initial, $500 renewal


Property and casualty in Oklahoma


Healthcare


Finance, insurance, real estate; health services, legal services; transportation,


utilities; construction; manufacturing, mining.


Pure captive: capital - $400,000, surplus - $350,000; association or industrial insured captive: capital - $600,000, surplus - $400,000; and mutual captive: capital - n/a, surplus - $1 million or $750,000 if it meets TCA 56-13-102(3)(c).


UTAH


$5,000 annual licence renewal fee in lieu of any premium tax


$250,000 for pure captive insurance company


$675 filing fee, $515 annual statement fee


$200 application fee; $5000 initial licence fee; $250 e-commerce fee


VERMONT


Captive tax rate: Vermont premium tax rate (effective January 1, 2004 and for premiums written in calendar year 2004 and thereafter): $0-20 million: direct premiums - 0.38%, assumed premiums: 0.214%; $20-40 million: direct premiums - 0.285%, assumed premiums - 0.143%; $40-60 million: direct premiums - 0.19%, assumed premiums - 0.48% and $60+ million: direct premiums - 0.72%, assumed premiums: 0.24%


In the case of a pure captive insurance company, not less than $250,000; in the case of an association captive insurance company, not less than $500,000; in the case of an industrial insured captive insurance company, not less than $500,000; in the case of a risk retention group, not less than $1,000,000; and in the case of a sponsored captive insurance company, not less than $500,000. The commissioner may prescribe additional capital and surplus based upon the type, volume, and nature of insurance business transacted. Capital and surplus may be in the form of cash or an irrevocable letter of credit issued by a bank approved by the Commissioner.


VIRGINIA


WEST VIRGINIA


2.25% 4.55% $4,000,000 See 33-31-4 $500 annual


Educational institutions, automotive and healthcare


All are represented, but highest concentrations are in real estate, manufacturing,


construction, financial, healthcare, and professional services


Top 12, with


number of captives: manufacturing - 107; healthcare - 89; banking - 50; insurance - 44; professional services - 31; construction - 30; retail - 29; energy - 24; transportation - 23; real estate - 21; education - 16 and religious institutions - 15


$500 $200 N/A N/A None One None None 432 121 Three None


One Two 76


None None


Association - 1; risk retention groups - 35


184


None


58 US Captive . April 2011


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