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Member, Beacon International Group, Ltd.
TRENTON, N.J.—New Jersey Gov. Chris Christie on Tuesday signed legislation into law that will allow the formation of captive insurance companies in the state.
The New Jersey measure, A. 2360, is modeled in part on Vermont's pioneering statute.
For example, the premium tax structure laid out in the New Jersey bill is identical to Vermont's. On direct written premiums, the tax will be 0.38% on the first $20 million in premiums, 0.285% on the next $20 million, 0.19% on the next $20 million and 0.072% on premiums exceeding $60 million.
The minimum annual premium tax will be $7,500, while the maximum annual premium tax—regardless of how much business is funneled through a captive—will be $200,000.
Under the new law, the minimum capital and surplus requirements for single-parent captives and association captives, which will be $250,000 and $750,000, respectively.
The new law, which goes into effect May 22, will be “good for New Jersey fiscally and economically,” Gregg Sgambati, president of the Mahwah, N.J.-based New Jersey Captive Insurance Assn., said in a statement.
TRENTON, N.J.—The New Jersey Assembly has approved legislation to allow captive insurance companies to be licensed in the state.