Michigan officially goes captive
–31 March 2008
Michigan Governor Jennifer Granholm has signed off on legislation enabling the formation of captive insurance companies in the state, with immediate effect.
The Office of Financial and Insurance Services (OFIS) in Michigan, overseen by Acting Commissioner Ken Ross, recently gave its blessing to the captive bill, which received unanimous approval from the state Senate.
The Michigan captive measure does not impose premium taxes but instead would charge parent companies fees linked to premium volume, ranging from US$5,000 for captives with premium volume of less than US$5m to US$100,000 for those with at least US$75m.
The legislation includes provisions for branch captives, typically used by businesses wishing to fund employee benefit risks whilst retaining their offshore captives, as well as for sponsored/protected cell captives.
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