How to Form a Captive

The process of forming a captive insurance company in Tennessee will generally involve the following steps:

  1. Call or email the Director of Captive Insurance or staff to discuss the proposed captive insurance company and obtain initial reactions from the Department. 
  2. Prepare documents necessary for corporate formation. Submit your formation documents to the Department for approval by the Commissioner. Once approved by the Commissioner, present the documents to the Secretary of State, along with appropriate fees and the Commissioner’s approval letter. Once filed with the Secretary of State, obtain a copy of the formation certification to submit with your application to the Department.
  3. Prepare documents necessary for application to the Department. Application documents should be submitted electronically to captive.insurance@tn.gov. The documents should be submitted as separate PDF documents in accordance with Index for Captive Application. Include a $675.00 application fee prior to the approval of the captive or cell. Additional fees may be required pursuant to the statute.
  4. Application materials may be assigned to an outside review firm if deemed necessary by the Commissioner. If the application is assigned to an outside actuarial firm for review, the applicant will be responsible for fees associated with that review.
  5. Once your application is approved by the Department, a Certificate of Authority Issuance fee of $440.00 is due.

For further information regarding the captive formation process, please refer to Licensing Information and Rules and Laws.

Other requirements:

  1. Select a Tennessee designated captive management firm, actuary firm, and CPA firm
  2. If your captive manager is not currently designated as a service provider in Tennessee, they must complete the Captive Manager Designation Form for Captive Insurance Companies.
  3. If your actuary is not currently designated as a service provider in Tennessee, they must submit the Actuary Designation Form for Captive Insurance Companies.
  4. If your CPA is not currently designated as a service provider in Tennessee, they must submit the Certified Public Accountant Designation Form for Captive Insurance Companies.