Kentucky

[Last updated: 01/06/23] ​

Regulatory contact:
Russell Coy
Kentucky Captive Coordinator and Early Warning Analyst
Department of Insurance
Mayo-Underwood Building
500 Mero Street, 2 SE 11
Frankfort, KY 40601

Telephone Number  
Main Line--(502) 564-6082, ext. 25274 
FAX--(502) 564-4604  

Email Address  
Russell.Coy@ky.gov

Website  
http://captive.insurance.ky.gov

Name of Captive Legislation                       
Kentucky Captive Insurance Law

Year Legislation Passed                                                 
2000

Recent Amendments                                      
Amended 2006 & 2010

Do you allow Cell Captives?                        
Not at this time

Total Number of Licenced Captives 
32       

Number of Risk Retention Groups or Group Captives                      
3 RRGs and 6 group

Number of Single Parent Captives                            
23

Number of Cell Captives                                               
N/A

Number of licences granted in the past year (2022 calendar year)    
0

Approximate (or Average) length of time to process a new captive 
1-2 months

Captive tax rates 
Kentucky Premium Tax Rate
Millions of Dollars            Direct Premiums Tax Rate (%)    Assumed Premiums Tax Rate (%)
0-20                                                       0.40                                    0.225
20-40                                                     0.30                                    0.150
40-60                                                     0.20                                    0.050
60+                                                        0.075                                 0.025
A minimum of $5,000 per year is charged if the premium tax would not otherwise exceed that amount.

Minimum capitalisation rate
Pure                      $250,000 USD
All others             $500,000 USD

Licencing fees 
Admission           $600
Annual                  $300 ($600 for RRGs)

Industry sectors best represented in the domicile 
Automobile, health care and elder services, manufacturing, real estate and construction, and shipping/transport and logistics.                                                                                                           
Top uses for captives in the domicile

Kentucky has three RRGswriting med-mal.  We also have large ESOP controlled captives. 

Total premiums received by the Captives
Total annual premium approx.  $105 million

Total value of assets under management
Approx. $128 million

Captive Insurance Managers registered to conduct business in domicile