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New Missouri Law Expands Captive Insurance Companies


Governor Nixon recently passed Senate Bill 287, modifying Missouri’s captive insurance law by allowing the formation of sponsored captive insurance companies.On May 16, 2013, Governor Nixon signed legislation that modifies Missouri’s captive insurance law. The legislation, Senate Bill 287, is intended to encourage more captives to form in the state by allowing the formation of sponsored captive insurance companies.

A sponsored captive insurance company is an attractive option for mid-sized businesses. These businesses might have sufficient funds to justify a formal self-insurance arrangement but not enough funds to capitalize their own single-owner pure captive or the desire for the full grouping of risks within a typical captive.

Mid-sized businesses might consider a sponsored captive insurance company for several reasons, namely:

  • The risks of its participants are insured through protected cells whose assets and liabilities are segregated from each other and from the general account of the sponsored captive insurance company.
  • The company’s sponsor generally supplies the minimum surplus of a sponsored captive insurance company – not its participants.

The legislation will take effect August 28, 2013.

Forming a captive insurance company for your business has many potential benefits, including:

  1. You could save money and get better insurance coverage.
  2. You can insure against risks that are expensive or unavailable in the market place.
  3. Money can be passed down to future generations more efficiently, making captives a great estate-planning strategy.

To learn more about the benefits of starting a captive insurance company, watch the third episode of the Brown Smith Wallace Brown Boarding Business Series.

With our team of insurance, tax and audit experts, the advice and expertise needed for establishing and maintaining any captive insurance company is conveniently located under one roof, making the process seamless. Contact Alan Fine, CPA, JD, at 314.983.1292, or Bill Goddard, CPCU, at 314.983.1253,


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