SB 287 - Captive Insurance Companies

• Repeals and replaces Missouri captive insurance statutes to establish new definitions and requirements for four types of captive insurers: pure, association, industrial insured, and sponsored captive insurance companies.

• Reduces minimum capital and surplus requirements for association captive insurance companies from $750,000 to $500,000 and establishes $500,000 requirement for sponsored captive insurance companies.

• Authorizes creation of sponsored captive insurance companies with protected cells that segregate assets and liabilities for individual participants, allowing multiple entities to use a single insurer with separate risk pools.

• Modifies premium tax structure for captive insurers using tiered rates based on premium volume and adds special tax provisions for sponsored captive companies treating protected cells as separate entities for tax purposes.

• Allows protected cells to be established as separate incorporated entities and permits sponsored captive insurance companies to be formed as stock insurers, mutual corporations, nonprofit corporations, or limited liability companies.