Arizona Governor Katie Hobbs has signed House Bill 2193 (HB 2193) into law, which reduces the minimum capital and surplus requirements for protected cell captive insurers to US$250,000.
The bill passed in the Arizona Legislature in late April and amends the captive insurer section of the state’s Insurance Code.
The bill also adjusts the annual licence renewal deadline, which will now fall between 1 July and 1 September.
A new provision allows dormant captive insurers — companies that have ceased underwriting and have no outstanding liabilities — to apply for a certificate of dormancy.
These dormant insurers must maintain a minimum capital and surplus of US$125,000 and comply with financial reporting obligations.
HB 2193 also clarifies governance rules for captive insurers operating as limited liability companies (LLCs).
Industry experts anticipate that the new regulations will support continued growth and innovation in the captive sector in the state.
The new legislation is expected to take effect in August or September 2025.
