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NC Captive Law

Not Official

While every effort was made to ensure the accuracy and completeness of the captive insurance statutes available on the North Carolina Department of Insurance's web site, these statutes include recent amendments that have not yet been issued in official codified form.  The North Carolina Department of Insurance  will not be responsible for any errors or omissions which may occur in this file, and users should consult the Session Laws in question: http://www.ncga.state.nc.us/Sessions/2013/Bills/House/PDF/H267v6.pdf.  

This document is an unofficial compilation of the original captive law passed in 2013 and the 2014 amendments thereto.

House Bill 473, An Act to Enact the North Carolina Captive Insurance Act, was signed into law on June 19, 2013.

The purpose of the Act is to "establish the procedures for the organization and regulation of the operations of captive insurance companies transacting insurance business within this State and thereby promote the general welfare of the people of this State."

Read the full law here: www.ncleg.net/Sessions/2013/Bills/House/PDF/H473v9.pdf

House Bill 267, Amendments to the N.C. Captive Insurance Act signed into law on July 7, 2014, will make North Carolina more competitive with other captive states, provide additional flexibility to the insurance commissioner in the regulation of captives, and allow for the formation of additional types of captives in North Carolina.

Read the amendments here: http://www.ncleg.net/Sessions/2013/Bills/House/HTML/H267v6.html

Minimum Capital & Surplus Requirements

Type Minimum Capital & Surplus
Pure *$250,000
Association $500,000
Industrial Insured $500,000
RRG $1,000,000
Protected Cell / Incorporated Cell $250,000
SPFC $250,000
Special Purpose Captive Insurance Company $250,000

* or such other amount as determined by the Commissioner

Premium Tax Rates

Direct Premiums Collected Premium Tax Rate
Up to $20,000,000 .4%
$20,000,000 and more .3%
Assumed Reinsurance Premiums Collected Premium Tax Rate
Up to $20,000,000 .225%
$20,000,000 to $40,000,000 .150%
$40,000,000 to $60,000,000 .050%
$60,000,000 and over .025%