In an effort to attract its first captive insurance company, Maine has enacted legislation to modernize its captive insurance laws originally adopted in 1997. L.D. 1436, “An Act To Create Economic Development in the State by Modernizing the State’s Captive Insurance Laws” (the “Act”), eliminates many of the restrictions on the types of business a captive insurance company may engage in and on the types of allowable investments for pure captive insurance companies. The Act also allows for the formation of sponsored captive insurance companies and broadens the definition of “association” to include limited liability companies and labor organizations. The Act does, however, increase the minimum required amounts of capital and surplus for captive insurance companies based on captive-type.

For the complete text of the Act, click here.