Captive Insurance Times | Home - Hawaii...retention captive, USD 500,000 • Class 4: Sponsored...
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Captive Insurance Times Domicile Guidebook Captive Insurance Times Domicile Guidebook www.captiveinsurancetimes.com www.captiveinsurancetimes.com 86 87 E xperience, reliability and accessibility best describe why Hawaii is one of the world’s premier domiciles for captive insurance and alternative risk financing. With 30 years of experience, Hawaii is a key domicile of the Pacific region and highly respected worldwide. Its partnership approach with captive owners and the industry offers a stable and prudent environment for captive organisers, ensuring continued success of Hawaii captive programmes in this rapidly changing area. Hawaii offers multiple captive structures, including pure, group, association, sponsored and risk retention groups. The minimum required capital and surplus is determined by the insurance commissioner based on each captive programme. As a guide, the minimum statutory capitalisation requirements by class of captive licence are: • Class 1: Single-owner; reinsurance only, USD 100,000 • Class 2: Single-owner; direct and reinsurance, USD 250,000 • Class 3: Multi-owner; association or risk retention captive, USD 500,000 • Class 4: Sponsored captive, USD 500,000 • Class 5: Reinsurance or excess insurance only, to be determined by the insurance commissioner In Hawaii, tax is levied only on the captive’s premiums. There is no minimum premium tax but it is limited to USD 200,000. There is no taxation of captive premiums if premiums were previously subjected to tax in a jurisdiction where the underlying risk is located, or on reinsurance premiums assumed by a captive. The premium tax rate has been set at 0.25 percent for the first USD 25 million, 0.15 percent for the next USD 25 million, and 0.05 percent for between USD 50 million and USD 250 million. No tax is levied on more than USD 250 million. Captives in Hawaii are also subject to the following fees: • Initial incorporation: USD 50 • Application: USD 1,000 • Annual business registration: USD 50 • Annual captive licence: Class 1 and 2, USD 300; Class 3, USD 500; and Class 4 and 5, USD 1,000 More information on captive insurance in Hawaii can be found at www.cca.hawaii.gov/ins/captive. Hawaii
Transcript of Captive Insurance Times | Home - Hawaii...retention captive, USD 500,000 • Class 4: Sponsored...
Captive Insurance Times Domicile Guidebook Captive Insurance Times Domicile Guidebookwww.captiveinsurancetimes.com www.captiveinsurancetimes.com86 87
Experience, reliability and accessibility best describe why Hawaii is one of the world’s premier domiciles for captive insurance
and alternative risk financing. With 30 years of experience, Hawaii is a key domicile of the Pacific region and highly respected worldwide.
Its partnership approach with captive owners and the industry offers a stable and prudent environment for captive organisers, ensuring continued success of Hawaii captive programmes in this rapidly changing area.
Hawaii offers multiple captive structures, including pure, group, association, sponsored and risk retention groups.
The minimum required capital and surplus is determined by the insurance commissioner based on each captive programme. As a guide, the minimum statutory capitalisation requirements by class of captive licence are:
• Class 1: Single-owner; reinsurance only, USD 100,000
• Class 2: Single-owner; direct and reinsurance, USD 250,000
• Class 3: Multi-owner; association or risk retention captive, USD 500,000
• Class 4: Sponsored captive, USD 500,000
• Class 5: Reinsurance or excess insurance only, to be determined by the insurance commissioner
In Hawaii, tax is levied only on the captive’s premiums. There is no minimum premium tax but it is limited to USD 200,000. There is no taxation of captive premiums if premiums were previously subjected to tax in a jurisdiction where the underlying risk is located, or on reinsurance premiums assumed by a captive.
The premium tax rate has been set at 0.25 percent for the first USD 25 million, 0.15 percent for the next USD 25 million, and 0.05 percent for between USD 50 million and USD 250 million. No tax is levied on more than USD 250 million.
Captives in Hawaii are also subject to the following fees:
• Initial incorporation: USD 50• Application: USD 1,000• Annual business registration: USD 50• Annual captive licence: Class 1 and 2, USD
300; Class 3, USD 500; and Class 4 and 5, USD 1,000
More information on captive insurance in Hawaii can be found at www.cca.hawaii.gov/ins/captive.
Hawaii
