Kansas has become the latest US domicile to authorise protected cell captive insurance companies after Governor Laura Kelly signed House Bill 2334 into law earlier this month.
The act lets sponsors establish protected cell captives in stock, mutual, non profit or LLC form, with each cell’s assets and liabilities ring-fenced from every other cell.
Captives that redomesticate to Kansas will owe premium tax only on direct and assumed business written after the move, and may elect a one year holiday from that tax.
The statute further provides that the captive premium tax in K.S.A. 40-4310 satisfies all state and local tax obligations of a captive insurer.
Minimum core capital is set at US$100,000, and the insurance commissioner is empowered to issue provisional certificates of authority to new formations.
From 1 January 2026, HB 2334 also trims the general insurance company premium tax rate to 1.98 per cent, and incorporates the latest NAIC accreditation updates.
The law takes effect on publication in the 2025 statute book, a date usually falling in the first week of July.
Lawmakers approved the measure with House and Senate votes of 113–10 and 40–0 respectively, followed by near unanimous conference committee concurrence on 27 March.
Industry supporters say the protected cell regime and redomestication relief will position Kansas as a Midwestern rival to Vermont and Tennessee for captive business.
The Kansas Insurance Department is expected to release application guidance and draft regulations for public comment later this summer.
