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Nevada
Marsh Management Services Inc.
Head of Office: Julie Boucher
Sales Coordinator: Cinda Carbone, (949)-399-2995
Office and Mailing Address
7251 W Lake Mead Blvd Ste 401
Las Vegas NV 89128
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Telephone: (702) 804-7462
Facsimile: (702) 804-7461
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Basic Information
| Location |
Nevada is located in the western United States. |
| Accessibility |
Frequent flights are available to Reno or Las Vegas, Nevada from most cities. |
| Applicable Legislation |
Chapter 649C – Captive Insurers |
| Number of Captives |
There are 123 captives as of December 31, 2008.
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| Regulatory Agency |
Division of Insurance, Nevada Department of Business & Industry, 788 Fairview Drive, Suite 300, Carson City, Nevada 89701-5491 |
Regulatory Issues
| Acceptable Insurance Subsidiaries |
Pure captives, association captives, risk retention groups, rent-a-captives, agency captives, and protected cell. |
| Acceptable Corporate Forms |
Pure captives, association captives, risk retention groups, rent-a-captives, agency captives, and protected cell |
| Permitted Business |
All property and casualty lines |
| Direct Insurance Permitted |
All permitted business |
| Reinsurance Permitted |
Any line of insurance, upon approval of the insurance commissioner |
| Policy Form and Rate Approval |
Not required (but submitted in business plan) |
| Local Office Requirement |
- Principle place of business
- One board of directors meeting held annually in Nevada
- One resident director
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In 2005, Governor Kenny Guinn signed into law legislation to permit
protected cell captives. This legislation also dramatically reduced fees on risk retention groups licensed in other states that provide coverage to Nevada policyholders as well as premium taxes paid by out of state risk retention groups on coverage written for Nevada policyholders.
Capitalization & Solvency Requirements
| Entity |
Required minimum capital and surplus in cash or letter of credit |
Pure Captive
Association Captive
Agency Captive
Rental Captive
Sponsored Captive |
$200,000
$500,000
$600,000
$800,000
$500,000 |
Solvency
| Solvency |
No formal requirements; generally follows Bermuda |
Premium Taxes
Premium tax is in lieu of all other state taxes except real and personal property tax |
| Minimum |
$5k (a nonrefundable credit of $5K applies against aggregate taxes owed for the first year of a tax liability); Max: $175K |
| Direct insurance premium is subject to tax of: |
• .40% (1st $20M)
• .200% (2nd $20M)
• .075% thereafte.
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| Reinsurance premium is subject to tax of: |
• .225% (1st $20M)
• .150% (2nd $20M)
• .025% thereafter. |
Intercompany Loans |
Upon approval of the insurance commissioner |
| Investment Restrictions |
Funds must be invested in accordance with regulations governing all Nevada insurers, except that pure captives may obtain approval from the insurance commissioner for investments not specified in the insurance code (including parent loans). |
| 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 U.S. federal rate and consolidated at the rate of the foreign parent. Zero state income tax on profits is earned by the captive. |
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