Missouri Governor Jay Nixon has signed Senate Bill 287 into law, that allows for the formation of sponsored captive insurance companies.
The bill is intended to help lower the overhead costs for mid-sized businesses in Missouri that self-insure through captive insurance companies, and to encourage more captive to form in the state.
Under the new act a sponsored captive insurance company will be incorporated as a stock insurer with its capital divided into shares and held by stockholders, as a mutual corporation, as a nonprofit corporation with one or more members, or as a manager-managed limited liability company.
The act also allows sponsored captive insurance companies to establish one or more protected cell companies to insure risks under certain conditions.
The effective date for the new legislation is 28 August 2013.
