Oregon Governor John Kitzhaber recently signed S.B. 1547 into law, making Oregon the latest state to permit the formation of captive insurance companies.  S.B. 1547 allows for the formation of pure captives, association captives, branch captives, and captive reinsurers.  In lieu of premium taxes, S.B. 1547 requires that Oregon captives pay an annual fee in order to renew their certificates of authority, which S.B. 1547 sets at $5,000, but which may be increased by the Oregon Department of Consumer and Business Services, either on a flat basis or to vary based upon captives’ annual premiums.  Oregon captives must maintain their principal place of business in Oregon, except for branch captives, which must maintain the principal place of business for the branch operations in Oregon.

To view the complete text of S.B. 1547, which is effective July 1, 2012, click here.