NC Captive Law
This document is an unofficial compilation of the original captive law passed in 2013 and all subsequent amendments thereto:
While every effort was made to ensure the accuracy and completeness of the captive insurance statutes available on the North Carolina Department of Insurance's web site, these statutes include recent amendments that have not yet been issued in official codified form. The North Carolina Department of Insurance will not be responsible for any errors or omissions which may occur in this file, and users should consult the following Session Laws in question:
- House Bill 473 / Session Law 2013-116, N.C. Captive Insurance Act - June 19, 2013
- House Bill 267 / Session Law 2014-65, Captive Insurance Amendments - July 7, 2014
- House Bill 163 / Session Law 2015-99, Captive Insurance Amendments -June 19, 2015
- House Bill 287 / Session Law 2016-78, Captive Insurance Amendments - June 30, 2016
- House Bill 382 / Session Law 2018-120, Captive Insurance Amendments - June 28, 2018
- House Bill 347 / Session Law 2022-7, Captive Insurance Amendments - June 14, 2022
- House Bill 319 / Session Law 2024-29, Captive Insurance Amendments - July 2, 2024
Minimum Capital & Surplus Requirements
| Captive Type | Minimum Capital & Surplus |
|---|---|
| Pure | $250,000* |
| Association | $500,000 |
| Industrial Insured | $500,000 |
| RRG | $1,000,000 |
| Protected Cell | $250,000* |
| SPFC | $250,000 |
| Special Purpose | $250,000* |
* Or such other amount as determined by the Commissioner
Premium Tax Rates
| Direct Premium Collected | Premium Tax Rate |
|---|---|
| Up to $20M | 0.40% |
| $20M and more | 0.30% |
| Assumed Reinsurance Premium Collected | Premium Tax Rate |
|---|---|
| Up to $20M | 0.225% |
| $20M to $40M | 0.150% |
| $40M to $60M | 0.050% |
| $60M and over | 0.025% |
*Minimum Premium Tax: $5,000 ($10,000 for protected cell captive insurers and special purpose protected cell captive insurers with more than 10 cells)
**Maximum Premium Tax: $100,000 ($200,000 for protected cell captive insurers and special purpose protected cell captive insurers with more than 10 cells)
Premium Tax Holiday - captive insurers that re-domesticate to North Carolina are exempt from paying premium taxes the year of re-domestication as well as the following year (*Effective July 2, 2024). The premium tax holiday will expire for taxable years beginning on or after January 1, 2026.