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New York
Marsh USA Inc.
Head of Office: Nisala Weerasooriya
Sales Coordinator: Arthur Koritzinsky
Office and Mailing Address
300 Broadhollow Rd.
Suite 201
Melville, NY 11747 |
Telephone: (631) 425-3207
Facsimile: (631) 425-3260
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Basic Information
| Location |
New York is located in the northeastern United States |
| Accessibility |
New York is accessible on frequent flights from numerous global locales |
| Applicable Legislation |
1997 New York Laws, Chapter 389, Article 70 |
| Number of Captives |
50 as of 31-Dec-2008
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| Regulatory Agency |
Superintendent of Insurance, New York Department of Insurance |
Regulatory Issues
| Acceptable Insurance Subsidiaries |
Pure and Group Captives |
| Acceptable Corporate Forms |
Stock or Mutual |
| Permitted Business |
Direct and Reinsurance |
| Direct Insurance Permitted |
Related and "Controlled" Unrelated Risk with approval of Superintendent. |
| Reinsurance Permitted |
Related and "Controlled" Unrelated risks. Third party not exceeding 50% of Gross Written Premium with approval of Superintendent. |
| Policy Form and Rate Approval |
Not required |
| Local Office Requirement |
Principal office in New York
Annual Directors meeting in New York
Minimum of three Directors
2/3 of Directors must be New York residents
Use of local manager required |
Capitalization & Solvency Requirements
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Minimum
Capital |
Minimum
Surplus |
Total Capitalization
(Cash or Letter of Credit) |
Stock
Pure
Group |
$100,000
$200,000
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$150,000
$300,000 |
$250,000
$500,000
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Mutual
Pure
Group
|
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$250,000
$500,000
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$250,000
$500,000
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Solvency Margin |
Typically $1 Capital to $5 Premium ratio for Property coverages; $1 Capital to $4 Premium for Casualty coverages. The parent (owner) of a New York captive must have a minimum net worth of $100 million. |
| Local Office Requirement |
Principal office in New York
Annual Directors meeting in New York
Minimum of three Directors
2 Directors must be New York residents
Use of local manager required |
| Premium Taxes |
Annual Assessment (Sec.332 of New York Insurance Law) - based upon direct premiums for risks located in New York only (non-New York & reinsurance premiums are not used in calculating the assessment). The estimated rate for 2005 is approximately .25% of New York direct premiums written. |
Premium tax on direct premiums
0.400% on first $20 million
0.300% on next $20 million
0.200% on next $20 million
0.075% thereafter
(subject to a minimum of $5,000) |
Premium tax on reinsurance premiums
0.225% on first $20 million
0.150% on next $20 million
0.050% on next $20 million
0.025% thereafter
(subject to a minimum of $5,000) |
| Intercompany Loans |
The captive may lend funds in excess of the minimum capitalization requirements subject to regulatory approval. |
| Investment Restrictions |
None, unless solvency is threatened |
| Taxation |
Income generated by the captive will be subject to the federal tax rate of the captive parent (assuming the parent is U.S. based); otherwise, the captive income will initially be subject to the US federal rate and consolidated at the rate of the foreign parent. No New York State Income tax applies to captive profits. |
| Reporting Requirements |
New York Annual Report
Audited GAAP Financials (before 7/1)
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