The law allowing captive insurers became effective July 2012.
Oregon allows these types of captive insurers:
Captive insurers can provide any line of insurance, except workers' compensation, life, health, or any personal property or personal line of insurance, including personal motor vehicles and homeowner insurance.
The minimum requirement is $250,000 for a pure captive insurer, $750,000 for an association captive insurer, and $300 million for a captive reinsurer. The minimum capital and surplus required may be in the form of cash or cash equivalent or an irrevocable letter of credit issued by an insured institution and approved by the director (Form 4942).
Association captives must comply with the same investment restrictions as a traditional insurance company, as outlined in ORS 733.510 to 733.780. A pure captive may invest in allowable investments under ORS 733.510 to 733.780 without any restrictions, except that the Insurance Division will not allow investments that threaten the solvency or liquidity of the captive. Captive insurers must file a description of their investment strategy as part of the initial application. Captives must notify the division of any future changes to that investment strategy. A captive insurer may not make any loans to the parent or affiliate of the captive insurer.
Oregon's fee is $5,000 for the initial certificate of authority (or permit to organize as a captive) and the same amount annually to renew.
Captives are subject to property tax on any property owned by the captive insurer. Although no premium tax is charged, the company is subject to the corporation excise tax. This is due one month following the due date of the federal return (April 15 for a calendar-year filer). Learn more from the Department of Revenue by calling 503-378-4988.
The following documents are required:
The Oregon Insurance Division examines all its captives at least once every three years. The insurer bears the costs. Additionally, by March 1 of every year, captives must file a year-end report on the financial condition of the company and file other documents. A more complete list of annual filing requirements is available on this website.