Mo. Insurance Dept. Invites Captive Insurance Companies to State

The Missouri Insurance Department recently announced steps it’s taking to implement legislation signed by Gov. Matt Blunt, which allows for the formation of captive insurance companies to bring as much as $10 million to the state’s revenue over the next three years.

Effective August 28, 2007, captive insurance companies can register with the department to do business in the state of Missouri. Although the full scope of implementing this legislation will not come into effect until after rules are adopted, the department is providing interim application forms for companies to use.

“We want to welcome and encourage our nation’s businesses to think about the advantages of forming a captive insurance company in this great state,” Director Doug Ommen said. “Captives can provide businesses with flexible tools to manage risk management issues and reduce administrative costs.”

The department is developing new systems to process captive insurance companies’ premium tax returns and tax payments because the first tax returns must be filed on or before February 1, 2008. A contract will also be negotiated with actuarial services to help the department evaluate applications for captive insurance companies.

All forms are located on the department’s Web site at http://www.insurance.mo.gov/industry/forms/index.htm under “Admissions Forms.”

Source: Missouri Department of Insurance