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Domicile Guide

OpenInsure codifies the regulatory requirements for the leading US captive insurance domiciles. The compliance engine uses this configuration to generate automatic filing deadline reminders and validate that your captive meets minimum capital requirements.

note

This guide reflects requirements as of early 2025. Captive insurance regulations change frequently. Always confirm current requirements with your captive manager and the relevant domicile regulator.

Supported Domiciles at a Glance

StateMin. Capital (Pure Captive)Formation FeeAnnual FeeKey Regulator
Vermont (VT)$250,000$3,000$5,500Vermont DFR
Delaware (DE)$250,000$5,000$5,000Delaware DOI
Hawaii (HI)$250,000$3,000$3,000Hawaii DOI (DCCA)
North Carolina (NC)$250,000$2,500$5,000NCDOI
District of Columbia (DC)$250,000$3,500$4,500DC DOI
Montana (MT)$250,000$2,000$2,500Montana DOI

Vermont (VT)

Vermont is the largest and most established US captive domicile, with over 600 active captives.

Regulatory Contact: Vermont Department of Financial Regulation Website: dfr.vermont.gov

Formation Requirements

  • Minimum capital: $250,000 (pure captive); $500,000 (association captive)
  • Letter of credit accepted in lieu of paid-in capital (subject to DFR approval)
  • Must appoint a Vermont-licensed captive manager
  • Business plan required at formation (5-year projection)
  • Actuarial feasibility study required for association captives

Annual Filing Deadlines

FilingDue DateNotes
Annual ReportMarch 1Financial statements + management discussion
Actuarial OpinionMarch 1Signed by qualified actuary
Audited FinancialsJune 1By licensed CPA
Premium Tax ReturnMarch 10.38% of first $20M GWP; 0.285% above
Business Plan UpdateUpon material changeRequired within 30 days

Annual Premium Tax

Vermont uses a tiered premium tax:

GWP BandRate
First $20,000,0000.38%
$20,000,001 – $40,000,0000.285%
Over $40,000,0000.19%
Minimum tax$7,500

Delaware (DE)

Delaware is favored for its flexible corporate law and well-established Series LLC structure.

Regulatory Contact: Delaware Department of Insurance Website: insurance.delaware.gov

Formation Requirements

  • Minimum capital: $250,000 (pure captive)
  • Series LLC structure available for PCCs
  • Must appoint a Delaware resident registered agent
  • No resident captive manager requirement (unlike Vermont)

Annual Filing Deadlines

FilingDue DateNotes
Annual ReportMarch 2Financial statements
Actuarial CertificationMarch 2
Premium Tax ReturnMarch 2
Audited FinancialsJune 1

Annual Premium Tax

GWP BandRate
First $20,000,0000.30%
$20,000,001 – $40,000,0000.20%
Over $40,000,0000.10%
Minimum tax$5,000

Hawaii (HI)

Hawaii is the primary domicile for Pacific Rim–based captives and healthcare captives.

Regulatory Contact: Hawaii Division of Financial Institutions (DCCA) Website: cca.hawaii.gov

Formation Requirements

  • Minimum capital: $250,000 (pure captive); $500,000 (association)
  • Well-suited for health and workers' compensation lines
  • FHIR-integrated health captives benefit from OpenInsure's @openinsure/fhir package

Annual Filing Deadlines

FilingDue DateNotes
Annual ReportMarch 31
Actuarial OpinionMarch 31
Premium Tax ReturnApril 1
Audited FinancialsJune 30

North Carolina (NC)

North Carolina has grown rapidly since updating its captive laws in 2013.

Regulatory Contact: NC Department of Insurance Website: ncdoi.com

Formation Requirements

  • Minimum capital: $250,000 (pure captive)
  • No requirement for a North Carolina captive manager
  • Flexible redomestication process for captives moving from other states

Annual Filing Deadlines

FilingDue DateNotes
Annual StatementMarch 1NAIC-formatted preferred
Actuarial CertificationMarch 1
Premium Tax ReturnMarch 1
Audited FinancialsJune 1

District of Columbia (DC)

DC is a newer domicile but growing, particularly for risk pools and association captives.

Regulatory Contact: DC Department of Insurance, Securities and Banking Website: disb.dc.gov

Formation Requirements

  • Minimum capital: $250,000 (pure captive); $500,000 (association)
  • Must maintain a DC registered agent
  • Suitable for federal government contractors

Annual Filing Deadlines

FilingDue DateNotes
Annual ReportApril 1
Actuarial OpinionApril 1
Audited FinancialsJune 1
Premium Tax ReturnApril 1

Montana (MT)

Montana offers the lowest formation and annual fees, making it attractive for small captives.

Regulatory Contact: Montana Insurance Division Website: csi.mt.gov

Formation Requirements

  • Minimum capital: $250,000 (pure captive)
  • Lowest ongoing costs of any supported domicile
  • Informal, accessible regulator — good for first-time captive owners

Annual Filing Deadlines

FilingDue DateNotes
Annual StatementMarch 1
Actuarial OpinionMarch 1
Premium Tax ReturnMarch 10.00% for first $0.5M; 0.20% above
Audited FinancialsJune 1

Compliance Automation in OpenInsure

The @openinsure/compliance package manages domicile-specific deadlines automatically:

How It Works

  1. On captive creation, the domicile is set in the organization config.
  2. The compliance engine loads the filing calendar for that domicile.
  3. Filing deadlines are stored in the compliance_calendar table with reminder schedules.
  4. Automated reminders are sent to the configured compliance officer at 30, 14, and 7 days before each deadline.
  5. Once a filing is completed, it is marked filed in the compliance dashboard with the filing date, filer, and confirmation number.

Compliance Dashboard API

GET /v1/compliance/:orgId/calendar?year=2025

# Returns:
{
"domicile": "VT",
"filings": [
{
"type": "ANNUAL_REPORT",
"dueDate": "2025-03-01",
"status": "filed",
"filedDate": "2025-02-14",
"filedBy": "admin@acmecaptive.com"
},
{
"type": "AUDITED_FINANCIALS",
"dueDate": "2025-06-01",
"status": "pending",
"daysUntilDue": 42,
"reminderSent": true
}
]
}
caution

Failure to file on time can result in regulatory fines, license suspension, or administrative dissolution of the captive. The compliance engine provides reminders but does not substitute for active oversight by a licensed captive manager.