Missouri to allow formation of captives

JEFFERSON CITY, Mo.--Missouri is the nation's newest captive insurance company domicile.

Gov. Matt Blunt last week signed legislation, S.B. 215, which will allow the formation of captives in the state effective Aug. 28.

The measure, introduced by Sen. John Loudon, R-Chesterfield, mirrors captive statutes in other states, especially Vermont, the largest domestic 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.

With the enactment of the legislation, Missouri has become the ninth state since 2000 to have passed legislation permitting the formation of captive insurers. Additionally, many states with captive laws have changed those statutes in the last few years in an attempt to attract more captives.