Hawaii Gov. Ben Cayetano has signed into law a bill on captive insurance that makes Hawaii’s premium tax structure more equitable for captive insurers, while maintaining an adequate fund base for the ongoing monitoring, regulation, and development activities of the Captive Insurance Branch.
S.B. 2582 (Act 206) increases the minimum allocation to the Captive Insurance Administrative Fund from $250,000 to $1.5 million, eliminating the premium tax rate differential between pure captives and other captives, and establishing a declining premium tax rate schedule for all classes of captives.
The law will become effective Jan. 1, 2003.