Hawaii Captive Environment
Hawaii laws allow for the writing of all lines of casualty insurance, liability, marine and transportation, marine protection and indemnity, wet marine and transportation, property, surety, title, credit life and credit disability, or other lines that may be allowed by the Insurance Commissioner. Coverages can be provided by the captive on a direct or reinsured basis, or combination thereof.
Hawaii captives are designated and licensed as one of the following classes:
Class 1: Limited to single parent (or pure) captives that only reinsures affiliated risk from an insurer approved by the Insurance Commissioner.
Class 2: Limited to single parent (or pure) captives that insures risks of its owners and/or affiliates on a direct basis, and may also assume reinsurance like a Class 1 captive.
Class 3: Limited to association captive insurance companies or risk retention captive insurance companies.
Class 4: Limited to leased capital facilities where the limited membership insurance company insures the risks of its members, but whose owner or owners may, subject to the approval of the Insurance Commissioner, be persons or entities other than its members.
Class 5: A captive which is not a class1, class2, class3 or class 4 company and acts only as a reinsurer or excess insurer or both. And insures only those risks and lines of insurance approved by the Commissioner.
Minimum capital and surplus requirements for the four classes of captives are as follows, however, the Insurance Commissioner may require additional capital and/or surplus levels depending on the nature and amount of risk retained and program structure.
|Class||Minimum Statutory Capital (US$)|
|5||As Determined by Insurance Commissioner|
Premium Tax (Annual)
0.25% = $0 to $25 million
0.15% = $25 million to $50 million
0.05% = $50 million +
Maximum Premium Tax $200,000
Applies to gross written or assumed premium upon which no premium tax is otherwise paid; no minimum tax. The imposition and payment of premium taxes to the State of Hawaii exempts the captive from all other demands for taxes in Hawaii, except taxes on real property and purchase, use or ownership of tangible personal property.