Alabama

[Last updated: 15/07/16]
Regulatory contact:
Sean Duke
201 Monroe St, Suite 502, Montgomery, AL  36104
Telephone Number 334-241-4165
Email Address sean.duke@insurance.alabama.gov
Website www.aldoi.gov

Name of Captive Legislation
--

Year Legislation Passed                                 
2006; Amended 2016

Recent Amendments      
Act 2016-191

Do you allow Cell Captives?        
Yes

Total Number of Licenced Captives 
41- See below for breakdown.

Number of Risk Retention Groups or Group Captives      
None

Number of Single Parent Captives            
39

Number of Cell Captives               
2

Number of licences granted in the past year (2015 calendar year)             
6

Approximate (or Average) length of time to process a new captive 
7 business days

Captive tax rates 
Direct: 0.4% first $20m; 0.3% next $20m; 0.2% next $20m; 0.075% all over $60m.
Reinsurance: 0.225% first $20m; 0.15% next $20m; 0.05% next $20m; 0.025% all over $60m. No reinsurance tax if premium subject to direct taxation. No tax on annuities. $5,000 minimum annual tax. Two or more Direct: 0.4% first $20m; 0.3% next $20m; 0.2% next $20m; 0.075% all over $60m.
 
Reinsurance: 0.225% first $20m; 0.15% next $20m; 0.05% next $20m; 0.025% all over $60m. No reinsurance tax if premium subject to direct taxation. No tax on annuities. $5,000 minimum annual tax. Two or more Direct: 0.4% first $20m; 0.3% next $20m; 0.2% next $20m; 0.075% all over $60m. Reinsurance: 0.225% first $20m; 0.15% next $20m; 0.05% next $20m; 0.025% all over $60m. No reinsurance tax if premium subject to direct taxation. No tax on annuities. $5,000 minimum annual tax if business is written. Two or more captives under common ownership taxed as one.  Dollar for dollar credits for examination expenses and business privilege tax in the years they were paid.  Premium tax capped at $100,000. 

Minimum capitalisation rate
Pure $250,000; Association $500,000; Industrial $500,000; Protected Cell $250,000; Reciprocal $1,000,000; Commissioner can require more based on type, volume and nature of business

Licencing fees
$200 application fee
$300 license fee


Industry sectors best represented in the domicile
Various

Top uses for Captives in domicile  
No specific concentration in any single sector.

Total premiums received by the Captives             
Direct- $35,616,304   
Reinsurance- $48,556,814

Captive Insurance Managers registered to conduct business in domicile