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Utah
Marsh USA Inc.
Head of Office: Julie Boucher
Office Address
Captive Solutions
100 Bank Street, Suite 610
Burlington, Vermont 05401
United States
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Telephone: (802) 864-5912
Facsimile: (802) 859-3550
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Mailing Address
P.O. Box 530
Burlington, Vermont 05402-0530
United States
Basic Information
| Location |
Utah is located in the U.S. Rocky Mountains, west of Colorado and Nevada. |
| Accessibility |
Direct flights are available to Salt Lake City, Utah from most U.S. cities. |
| Applicable Legislation |
Utah Code Ann. 31A-37-101 et seq. |
| Number of Captives |
122 as of December 31, 2008 |
| Regulatory Agency |
Utah Insurance Department, Captive Insurance Division State Office Building Room 3110, Salt Lake City, UT 84114-6901 |
Regulatory Issues
| Acceptable Licensed Entity Types |
Pure captives, branch captives, special purpose captives, association captives, sponsored captives, industrial insured captives, and risk retention groups. |
| Acceptable Organizational Forms |
Stock, mutual, or reciprocal. |
| Permitted Business |
All lines of insurance except workers' compensation and personal motor vehicle or homeowners' insurance, or any component of these coverages. |
| Direct Insurance Permitted |
All permitted business. |
| Reinsurance Permitted |
Most lines of insurance, upon approval of the insurance commissioner. |
| Policy Form and Rate Approval |
Not required (but submitted in business plan). |
| Local Office Requirement |
- Principal place of business in Utah.
- One board of directors meeting held annually in Utah.
- Resident agent in Utah (for service of process).
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Capitalization & Solvency Requirements
| Pure captive (Stock) |
$250,000
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| Association captive (Stock/Mutual) |
$750,000
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| Association captive (Reciprocal) |
$1,000,000 |
| Industrial Insured (Stock/Mutual) |
$500,000
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| Industrial Insured (Reciprocal) |
1,000,000
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| The amount of required capitalization requires approval by the insurance commissioner. Capital and surplus can be in the form of cash, irrevocable letter of credit issued by a qualified U.S. financial institution and approved by the insurance commissioner. |
Premium Taxes
Subject to $5,002 annual fee only. No premium taxes, not subject to corporate franchise or income taxes, subject to real and personal property taxes.
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Investment Restrictions
None for pure captives. Association Captives, Sponsored Captives, and Industrial Insured Groups must comply with the same investment restrictions as a traditional insurance company.
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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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