In 1624 the Dutch settled permanently and ruled for 40 years. They named the colony, New Netherland. The name was changed to New York, in honor of the Duke of York in 1664 when the English conquered the colony. New York declared its independence on July 9, 1776, becoming one of the original 13 states of the Federal Union.
New York is one of the wealthiest states. The New York Stock Exchange was founded in 1792 in New York City, which has become a center of world finance. New York City is also headquarters to the United Nations and is a leading national center for art, music and literature.
Interested in Setting Up a Captive in New York?
- Call Elizabeth Steinman +1 802 651 0142
- E-mail Elizabeth Steinman
More Information
General Information
Applicable Legislation
Article 70 of the New York State Insurance Law was signed by Governor George E Pataki in 1997 and established New York as a captive insurance domicile.
Regulatory Environment
All insurance companies in New York are regulated by the Superintendent of Insurance of the New York Insurance Department. Reporting to the Superintendent of Insurance is a dedicated Captive Group.
General Requirements
- Licence application submitted with plan of operation including an actuarial report or feasibility study by a qualified independent actuary;
- appointment of Superintendent as agent for service of process;
- principal office and records maintained in New York;
- three members of Board of Directors required, two of whom must reside in New York. One Board meeting per year must be held in New York;
- state examination every five years; and
Annual Requirements
• New York Captive Financial Statements;
• annual audit by independent CPA firm;
• annual actuarial certification; and
• franchise taxes on Direct Written Premium
| 4/10 of 1% | 0-$20,000,000 |
| 3/10 of 1% | $20,000,000 - $40,000,000 |
| 2/10 of 1% | $40,000,000 - $60,000,000 |
| 75/1000 of 1% | $60,000,000 and over |
• franchise taxes on Reinsurance Assumed Premium
| 225/1000 of 1% | 0- $20,000,000 |
| 150/1000 of 1% | $20,000,000 - $40,000,000 |
| 50/1000 of 1% | $40,000,000 - $60,000,000 |
| 25/1000 of 1% | $60,000,000 and over |
Must pay the sum of Direct Written Premium and Reinsurance Assured Premium tax or $5,000, which is greater.
• Subject to assessment tax estimated at 0.25% of direct written premium (none on reinsurance assumed)
Minimum Capitalisation and Surplus
| Pure captive | $250,000 |
| Group captive | $500,000 |
Letters of credit acceptable
In addition to the costs specified above, there will be annual auditors' charges, actuarial investment management and legal fees.
The information in this document is intended as a general overview of jurisdictional requirements at the time of publication. It is not to be construed as legal advice or opinion and persons reading this publication are advised to obtain independent legal, accounting or tax advice on this regard.
