Legislation Tennessee Captive Insurance Company Act of 1978 Supervisory Jurisdiction Commissioner of Insurance Application to Tennessee Department of Commerce and Insurance Data includes Parent company's annual statement, application for Certificate of Authority, Articles of Incorporation, business plan, by-laws, officers and directors, power of attorney, projected premium income, certificate of deposit evidencing capitalisation, organisational examination report, rating and policy form questionnaire Reporting Requirements Annual financial report Restriction on Business Personal lines are prohibited Associated captive membership restricted by minimum criteria (eg. 25 employees) Capitalisation Pure captive US $400,000 Capital US $350,000 Surplus Association captive US $600,000 Capital US $400,000 Surplus Can be capitalised by letter of credit Minimum Solvency Net Premiums: capital and surplus must be no greater than 3:1 Fees US $500 application fee US $100 annual statement fee Reimbursement of examination expenses Annual Costs US $5,000 - pure captive (credited against premium taxes) US $10,000 - association captive (credited against premium taxes) Currency US dollars Taxation 1% of gross written premiums Location USA, mainland Administration Developed infrastructure
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