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North Carolina Captives

NOTICE
The offices of the Department of Insurance and the Captive Insurance Companies Division will be closed for the holidays on December 23, 26 and 27.

Committed…

From the Insurance Commissioner to the General Assembly to the North Carolina Captive Insurance Association, we are committed to making North Carolina a great new home for captives.

You can rest assured that your needs will be handled by a knowledgeable, experienced and responsive team of insurance professionals. We recognize that captives are different than traditional insurers, and we’re focused on delivering a sensible pro-business approach to regulation.

Competitive…

North Carolina has a state-of-the-art captive law that allows for a low cost of operation for captive insurance companies. Captives will enjoy no minimum premium requirements, reasonable capital requirements and competitive premium tax rates.

Without the Red Tape.

The North Carolina Department of Insurance is dedicated to facilitating a quick and efficient licensing process for captives.

There are no application fees, no annual fees and no mandatory examinations.

Compare before you decide...

Some states offer incentives, such as premium tax holidays, to entice captive insurers to redomesticate to their state; however, the cost to operate a captive insurer in North Carolina remains lower.

The only North Carolina regulatory cost for captive insurers is the annual premium tax. In the table below, the “Other State” costs include the annual premium taxes, application fee, certificate of authority fee, annual statement filing fees, business plan change fees, and costs for the regulator’s statutory audit.

year nc other state assumptions
1 $5,000 $1,630 “Other State” includes the premium tax holiday, application fee, certificate of authority fee, and annual statement filing fee.
2 $5,000 $5,515 In addition to premium tax, “Other State” includes the annual statement filing fee.
3 $5,000 $5,915 In addition to premium tax, “Other State” includes the annual statement filing fee and business plan change fee.
4 $5,000 $5,515 In addition to premium tax, “Other State” includes the annual statement filing fee.
5 $5,000 $10,915 In addition to premium tax, “Other State” includes the annual statement filing fee and costs for regulator’s audit.
TOTAL $25,000 $29,490  

Note: The actual costs for a captive insurer to operate in the “Other State” will be even higher, if additional business plan changes are proposed or the regulator outsources its actuarial review work or its statutory audit, requiring the captive insurer to bear those costs.