Kane Jurisdictions: New York

New York - State Background

In 1624 the Dutch settled permanently and ruled for 40 years. They named the colony, New Netherland. The name was changed to New York, in honor of the Duke of York in 1664 when the English conquered the colony. New York declared its independence on July 9, 1776, becoming one of the original 13 states of the Federal Union.

New York is one of the wealthiest states. The New York Stock Exchange was founded in 1792 in New York City, which has become a center of world finance. New York City is also headquarters to the United Nations and is a leading national center for art, music and literature.

Interested in Setting Up a Captive in New York? Call Liz Frederick Managing Director, Kane USA and Head of ILS T +1 345 914 7563 or M +1 345 938 7563 or Email her at liz.frederick@kane-group.com   For more information visit: Regulatory Body - NYS Insurance Department

General Information

Applicable Legislation
Article 70 of the New York State Insurance Law was signed by Governor George E Pataki in 1997 and established New York as a captive insurance domicile.

Regulatory Environment
All insurance companies in New York are regulated by the Superintendent of Insurance of the New York Insurance Department. Reporting to the Superintendent of Insurance is a dedicated Captive Group.

General Requirements

• Licence application submitted with plan of operation including an actuarial report or feasibility study by a qualified independent actuary;
• Appointment of Superintendent as agent for service of process;
• Principal office and records maintained in New York;
• Three members of Board of Directors required, two of whom must reside in New York. One Board meeting per year must be held in New York;
• State examination every five years;

Annual Requirements

• New York Captive Financial Statements;
• Annual audit by independent CPA firm;
• Annual actuarial certification; and

Franchise taxes on Direct Written Premium

4/10 of 1%	0 - $20,000,000
3/10 of 1%	$20,000,000 - $40,000,000
2/10 of 1%	$40,000,000 - $60,000,000
75/1000 of 1%	$60,000,000 and over

Franchise taxes on Reinsurance Assumed Premium

4/10 of 1%	0 - $20,000,000
3/10 of 1%	$20,000,000 - $40,000,000
2/10 of 1%	$40,000,000 - $60,000,000
75/1000 of 1%	$60,000,000 and over

Must pay the sum of Direct Written Premium and Reinsurance Assured Premium tax or $5,000, which is greater.

Subject to assessment tax estimated at 0.25% of direct written premium (none on reinsurance assumed).

Minimum Capitalisation and Surplus

Pure captive	$250,000
Group captive	$500,000

Letters of credit acceptable

Captive Costs

Range	Low	High
Application Costs (non recurring regulatory and Legal)	1/20 of 1% of par value of common stock	Dependent on type of captive
Annual Fees/Taxes	Please see general information above

In addition to the costs specified above, there will be annual management fees, directors' fees, annual auditors' charges as well as investment management and consultants' fees.

The information in this document is intended as a general overview of jurisdictional requirements at the time of publication. It is not to be construed as legal advice or opinion and persons reading this publication are advised to obtain independent legal, accounting or tax advice on this regard.