Conversion of a Foreign Captive to a Utah Captive

A foreign captive insurance company may be converted to a domestic captive insurance company. To qualify for domestication a foreign captive must be incorporated as a mutual or stock insurance corporation in another jurisdiction.

A change of domicile is achieved by preparing and adopting articles of domestication in compliance with the requirements of Section 16-6a-1518 (foreign non-profit corporation) or Section 16-10a-1533 (foreign non-profit corporation) and Section 16-6a-1003 depending on the form of organization in which the foreign captive conducts is business. The articles will be filed with the Utah Department of Commerce, Division of Corporations and Commercial Code after the Utah insurance commissioner approves them.

In addition to the articles of domestication the foreign captive must file an accurate and complete application for a certificate of authority to conduct business as a captive insurer in Utah. An application may be obtained by meeting with the deputy insurance commissioner and the department's chief financial examiner at the Utah Insurance Department, 3110 State Office Building, Salt Lake City, Utah 84114.

Once the application is approved the applicant may file the approved articles of domestication with the Division of Corporations and Commercial Code, 160 East 300 South, Salt Lake City, Utah 84111-0000 and pay any fee the division may require.

Upon filing of the articles of domestication with the division, the foreign corporation is domesticated in Utah and the Utah Insurance Commissioner will issue a certificate of authority authorizing the company to conduct business as a Utah captive insurer.

The applicant must pay an application fee of $202 at the time an application is filed with the department and a certificate of authority fee of $5002 at the application is approved. The certificate is renewable each year thereafter unless revoked by paying a renewal fee of $5,002.