The Commonwealth of the Northern Mariana Islands (CNMI) has enacted new legislation to allow captive insurance companies to operate within its jurisdiction. Governor Arnold I. Palacios has signed Senate Bill 24-09 into law, officially designating it as Public Law 24-03. Known as the Captive Insurance Act of 2025, the legislation enables captive insurers to be licensed, domiciled, and conduct business in the territory. The law, introduced by Senator Celina R. Babauta, aims to develop a regulated captive insurance industry in the CNMI. According to Public Law 24-03, promoting the responsible growth of the captive sector aligns with the jurisdiction’s interests, offering an alternative risk management strategy for a range of organisations from large corporations to non-profits. To establish a captive in the CNMI, applicants must pay a non-refundable fee of US$500 to the Commissioner of Insurance for the examination and processing of their licence. Special purpose financial insurance companies are subject to a higher non-refundable application fee of US$2,500. Annual renewal fees are set at US$500 for standard captive insurers and US$2,500 for special purpose entities. Capital requirements vary by structure, with pure captives required to hold a minimum of US$50,000 in capital. Group captives must hold US$100,000, while industrial insured captives incorporated as stock insurers must meet a US$150,000 minimum. Rent-a-captive or protected cell structures require US$150,000 for the first client or cell, with an additional US$150,000 per added client or cell, capped at US$750,000. Risk retention group captives face the highest threshold, at US$500,000 in capital.
