Overview
The District of Columbia (DC) established its captive legislation in 2000 with a re-write in 2004. The domicile rapidly established itself as a leading onshore captive domicile. At the end of 2010, DC had 93 active captives.
Minimum Capital and Surplus
| Single parent captive | $250,000 |
| Association captive – stock | $500,000 |
| Association captive – mutual | $500,000 |
| Agency or rental captive | $500,000 |
| Reciprocal | $500,000 |
| Segregated cell captive | case by case |
Key Features of Legislation
Like most domestic domiciles, DC’s legislation is modeled after Vermont, but with some key differences. These include:
- A best practice provision providing flexibility to approve any captive structure which would be approved in another captive domicile.
- Segregated cell legislation: unlike other onshore domiciles there is no requirement in DC that a segregated cell captive be sponsored by a traditional insurance company.
Specialty
DC has targeted group and Association captives given the number of industry Associations present in the District. As a result a large percentage of DC’s captives are Risk Retention Groups or other group or Association captives.
SRS Presence
SRS has been an approved captive manager in DC since 2004. Our captive management activities in the District are managed under the supervision of our Vermont office.