Captive Insurance Company
Other Requirements Necessary to Establish a Captive Insurance or Reinsurance
Company in Florida
(Listed in alphabetical order by title)
Additional Incorporation Requirements
These are in addition to the incorporation requirements mentioned in the section
"Florida’s Minimum Capitalization
and/or Surplus Requirements for a Captive Insurance or Reinsurance Company".
- A pure captive insurance company or industrial insured captive
insurance company incorporated as a stock insurer is
required to have its capital divided into shares and held by
the stockholders per S.
- An industrial insured captive insurance company may be
incorporated as a mutual insurer without capital stock, the governing
body of which is elected by its members.
- In the case of a captive insurance company formed as a
corporation or a nonprofit corporation, before the articles of
incorporation are transmitted to the Secretary of State, the
incorporators shall file three copies of the articles of incorporation
with the Office. If the Office finds they conform to law, it shall
endorse its approval on each of the three original copies, retain one
copy for its files and return the remaining copies to the incorporators
for filing with the
Department of State. The
articles of incorporation and the organization fees required by the
Florida Business Corporation Act or the Florida Not for Profit
Corporation Act, as applicable, must be transmitted to the Secretary of
State, who must record the articles of incorporation.
- A captive insurance company may not have fewer than three
incorporators of whom not fewer than two must be residents of this state
- The capital stock of a captive insurance company incorporated as a
stock insurer must be issued at par value of not less than $1 or more
than $100 per share per S.
To apply, an applicant must complete the
Captive Insurance Application Form, which also contains general instructions. Visit the
Company Admissions page of
the Office website for more information about general instructions related
to the application package and FAQ's.
Before receiving a license, a captive insurance company formed as
a corporation or a nonprofit corporation must file with the Office:
- A certified copy of its articles of incorporation and bylaws, a
statement under oath of its president and secretary showing its financial
condition, and any other statements or documents required by the Office.
- The amount and liquidity of the proposed captive insurance company’s
assets relative to the risks to be assumed.
- The adequacy of the expertise, experience, and character of the person
or persons who will manage the company.
- The overall soundness of the company’s plan of operation.
- The adequacy of the loss prevention program’s of the company’s parent,
member organizations, or industrial insureds, as applicable.
- Any other factors considered relevant by the Office in ascertaining
whether the company will be able to meet its policy obligations.
To evidence competence and trustworthiness of its officers and directors,
the application for a license to act as a captive insurance or captive
reinsurance company shall include, but is not limited to:
- Background Investigations
- Biographical Affidavits
- Fingerprint Cards for
all Officers and Directors – fingerprints must be taken by a law
enforcement agency or other entity approved by the Office, be accompanied by
the fingerprint processing fee specified in S.
624.501, F.S. and processed in accordance with S.
Approved Providers/Independent Directors:
- There is no provision in Florida law to maintain an approved vendor list
for services of captive managers, actuaries, independent directors,
certified public accountants, etc.
- Each year, prior to March 1, a captive insurance or captive
reinsurance company is required to submit to the Office a report of its
financial condition verified by oath of two of its executive officers and
using generally accepted accounting principles, unless the Office approves
the use of statutory accounting principles, with useful or necessary
modifications or adaptations required or approved or accepted by the Office
for the type of insurance and kinds of insurers to be reported upon, and as
supplemented by additional information required by the Office.
- A captive insurance company may submit a written application for
filing the required report, using generally accepted accounting principles,
on a fiscal year-end that is consistent with the parent company’s fiscal
year. If the fiscal year-end reporting is granted, the annual report is due
60 days after the fiscal year-end.
- With respect to captive reinsurance companies only, at least 35%
of their assets must be managed by an asset manager domiciled in Florida.
- Required to hold at least one board of directors’ meeting each year in
- A captive insurance company may apply to offer all insurance
authorized in Florida, except for workers’ compensation and employer’s
liability, life, health insurance, personal motor vehicle insurance, and
personal residential property insurance.
- A captive reinsurance company may apply to offer reinsurance
covering property and casualty insurance or reinsurance contracts.
- Initial License Application Fee (non-refundable) - $1,500
- Annual Renewal Fee - $1,000
Principal Place of Business:
- Required to maintain its principal place of business in Florida.
Requirements for resident registered agent to accept service:
- A captive insurance company must appoint a resident registered
agent to accept service of process and to otherwise act on its behalf in
- If a captive insurance company is formed as a corporation or a
nonprofit corporation and if the registered agent cannot with reasonable
diligence be found at the registered office of the captive insurance
company, the Chief Financial Officer of this state must be an agent of the
captive insurance company upon whom any process, notice, or demand may be
- Captive Insurance Company:
- May take credit for reserves on risks or portions of risks ceded to
authorized insurers or reinsurers and unauthorized insurers or
reinsurers complying with S.
- May not take credit for reserves on risks or portions of risks ceded
to an unauthorized insurer or reinsurer if the insurer or reinsurer is
not in compliance with S.
- Captive Reinsurance Company:
- Required to file an annual actuarial opinion on loss and loss
adjustment expense reserves provided by an independent actuary. The
actuary may not be an employee of the captive reinsurance company or its
- May discount its loss and loss adjustment expense reserves at
treasury rates applied to the applicable payments projected through the
use of the expected payment pattern associated with the reserves per S.
- At least one member of the Board of Directors must be a resident of Florida.
- At least two incorporators must be a resident of Florida.
Chapter 624, Part IV, F.S., with respect to fees, taxes and funds.
- Premium Tax – in accordance with S.
624.509, F.S., an amount equal to 1.75% of the gross amount of such
receipts; with provisions for allowable credits under subsection (4) and (5).
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