Missouri Becomes Ninth State to Welcome Captive Formations
Last week, Missouri Governor Matt Blunt signed legislation allowing the formation of captives in the state as of August 28. The measure was introduced by Senator John Loudon and reflects captives statues in other states, particularly Vermont, which is the largest domicile with 563 captives.
Under the new Missouri law, the minimum capital and surplus requirements would be $250,000 for a single-parent captive and $750,000 for an association captive. The minimum annual premium tax would be $7,500, while the maximum annual premium tax—regardless of the volume of business generated through a captive—would be $200,000.
Missouri is now the ninth state since 2000 to have passed legislation permitting the formation of captive insurers. What’s more, many states with captive laws have changed those statutes in the last few years in an attempt to attract more captives.
Published on July 17, 2007
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