STATE
MINIMUM CAPITALISATION RATE
LICENSING FEES
WHAT INDUSTRY SECTORS ARE MOST COMMONLY LICENSING IN YOUR STATE?
ALABAMA
Pure: $250,000; association: $750,000; industrial: $500,000; sponsored: $1 million; reciprocal: $1 million.
Application fee: $200; initial and annual licence fee: $300
NUMBER OF SINGLE- PARENT CAPTIVES
3
NUMBER OF GROUP CAPTIVES
0
DO YOU HAVE GROWTH EXPECTATIONS. IF SO, WHY?
Minimal, if any.
ARIZONA
Pure: $250,000; group captive: $500,000; risk retention groups: $500,000; agency captive: $500,000; protected cell captive: $500,000; reciprocals: $500,000; pure or group reinsurers: one-half of the above indicated amounts.
ARKANSAS
See AR Code Ann. 23-63-1604 and 23-63-1605
Issuance fee: $1,000; renewal fee: $5,500
Health (31),
construction (22), finance and insurance (16)
77
22
Remain steady. Trends are a result of the economy. The current economy is impacting credit, money availability, commercial insurance availability and parent companies’ bottom lines. All are to be considered when considering a captive.
Application fee $200; licence issue and annual fee $300
COLORADO
$500,000
$500 filing fee and $425 fraud fee
N/A 0 0 No
2
4
No
CONNECTICUT Pure captive: $250,000; association captive: $750,000; industrial insured captive: $500,000; risk retention group: $1 million.
Application fee of $800; initial and annual fee of $375
N/A
0
0
We do expect the number of licensed captives to grow in the next 12 months (currently we have none). We have received several inquiries from interested parties regarding the formation of a Connecticut domiciled captive.
DELAWARE
Pure captives: $250,000; association captives: $750,000; industrial captives: $500,000; risk retention group captives: $1 million; sponsored captives: $500,000; special purpose captives: $250,000.
Application fee: $200; processing fee: $3,000; annual renewal: $300
19 21
We will approve four new captives by March 31, 2010. We have minimally 15 new captives in the licensing pipeline. Series LLC structures have become very attractive to businesses forming new captives. The commissioner of insurance has formed a separate business unit for captives.
DISTRICT OF COLUMBIA
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 and annual licence fee
Healthcare industry 29 36
Yes. Interest in DC has increased considerably during the past two years. We expect this trend to continue.
HAWAII
Class 1: $100,000; Class 2: $250,000; Class 3: $500,000; Class 4: $500,000; Class 5: as determined by insurance commissioner.
$100,000 (Class 2)
Construction (47), healthcare (28), telecommunications and manufacturing (28)
146
17
Yes. Facing the increased competition, Hawaii is making positive changes to the way we do business with captive insurance companies. We are also seeing more interest in forming and formations from a year ago.
ILLINOIS
$2 million capital/surplus as a minimum.
Incorporate fee: $7,000; authority fee: $100
We have one single- parent/pure captive and it is Rubicon Ins. Co., which is Northwestern University's captive.
1 0
US Captive . April 2010 53
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