WHAT IS CAPTIVE INSURANCE
A captive insurance company (or “captive”) can generally be described as a closely held insurance company that insures the risks and exposures of its owners and affiliates.
Since captive law was enacted in 1986, there has been a steady increase in the number of companies incorporated in Hawaii. Organizers include some of the state’s largest employers as well as U.S. and foreign based regional and multinational companies from a diverse range of industries. For more information on captive insurance law, please click here.
SETTING UP A CAPTIVE IN HAWAII
TAXES & FEES
|Initial Incorporation Fee:||$50|
|Annual Business Registration Fee:||$15|
|Captive Application Fee:||$1000|
|Captive Annual License Fees:|
|Class 1 and 2:||$300|
|Class 4 and 5:||$1000|
Payments shall be remitted with completed Captive Payment Voucher.
Premium Tax (Annual)
Tax on captive’s premiums written only. 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.
Rates as follows:
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 more than $250 million
Captive Annual Filings shall be submitted to the following email address: CaptiveInsAnnualFilings@dcca.hawaii.gov.
Captive Annual Filing Forms are not available online. To request forms, please contact us.
BUSINESS PLAN FILINGS
Captive Applications, Business Plan Amendments, Notifications and Conditional Filings shall be submitted to the following email address: CaptiveInsBusPlans@dcca.hawaii.gov.
CAPTIVE INSURANCE SPOTLIGHT
Deputy Commissioner and Captive Insurance Administrator
State of Hawaii
Department of Commerce & Commerce Affairs
Insurance Division – Captive Insurance Branch
335 Merchant Street, Room 213
Honolulu, HI 96813
Telephone: (808) 586-0981
Facsimile: (808) 586-0987