24 March 2017Analysis

Delaware bill to introduce dormant captives

The Delaware House of Representatives has introduced a bill to enhance the State's attractiveness as a domicile through creating a regulatory regime for captive insurance companies that are dormant.

House bill 87 was introduced on March 21 and is sponsored by Representative Bryon Short.

The bill states that a dormant captive insurance company is one that that did not contract for any direct or reinsurance premium for a full calendar year.

Furthermore, the captive must not be obligated as an insurance company under any contract of insurance or reinsurance during the year it is a dormant captive.

The dormant captive must possess unimpaired capital and surplus in an amount of $25,000 or any such amount determined by the Insurance Commissioner.

A committee hearing will take place within 12 legislative days of of the bill being introduced.

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