SOURCE: Hawaii Captive Insurance Council

July 09, 2007 00:00 ET

Hawai`i Legislature Approves New Captive Legislation

Hawai`i Passes Legislation Allowing Captives to Be Formed as Limited Liability Companies, Enhances Investment Options for Certain Classes of Captives, Clarifies Minimum Capital and Surplus Requirements, Establishes a Maximum Premium Tax and Elevates the Captive Insurance Administrator to Deputy Insurance Commissioner

HONOLULU, HI--(Marketwire - July 9, 2007) - Hawai`i Governor Linda Lingle signed into law two bills that enhance and clarify Hawai`i's captive insurance laws. The Legislature, the Hawai`i Insurance Division and the Hawaii Captive Insurance Council worked in concert to craft these important changes, illustrating Hawai`i's continued commitment and responsiveness to this growing and thriving industry.

Highlights of the legislative amendments include:

--  Streamlining of investment opportunities for pure captive insurance
    companies
--  Allowing captives to be formed as limited liability companies
--  Clarifying minimum capital and surplus requirements
--  Establishing a maximum premium tax liability of $200,000
--  Elevating the Captive Insurance Administrator position to that of
    Deputy Insurance Commissioner status
    

"This is a great example of the captive industry, regulators and law makers working together to craft legislation that strengthens Hawai`i's position as a premier captive insurance domicile," commented J.P. Schmidt, Hawai`i's Insurance Commissioner. "We believe in supporting the captive industry and this legislation further illustrates Hawai`i's commitment to captives."

Hawai`i is the second largest captive insurance domicile in the US and one of the most successful and highly regarded domiciles in the world. Since captive legislation was adopted in 1986, Hawai`i has licensed over 200 captives from diverse industries including: homebuilding/construction, manufacturing, hospitality services, healthcare and telecommunications.

For further information, contact the Captive Insurance Branch of the Hawai`i Insurance Division at (808) 586-0981 or captiveins@dcca.hawaii.gov. The Captive Branch website address is www.captiveinsurance.hawaii.gov.

The Hawaii Captive Insurance Council acts as a liaison between its members and the Hawai`i Insurance Division on governmental and regulatory affairs and it provides ongoing information and global educational opportunities to its membership and the captive insurance community at large. To contact HCIC, call toll free 1-866-724-4242, e-mail us at info@hawaiicaptives.com or visit our website http://www.hawaiicaptives.com/

Contact Information

  • Krysten Coulter
    Hawaii Captive Insurance Council
    Phone: (808) 247-0417
    Fax: (808) 235-5935