Delaware Department of Insurance Announces Revision to Series Business Unit Application Fees

On June 26, 2014, the Delaware Department of Insurance announced a change in the formation charges for Series Business Units. Effective September 1, 2014, Delaware will require an application fee of $200 and an application processing fee of $3,000. This will replace the current application fee of $1,800.

This update is very good news for several reasons:

1)      The new application and processing fees will not take effect until September 1, 2014. Your clients will have the opportunity to save $1,400 by submitting an application to Delaware prior to September 1st.  

2)      As a domicile, Delaware’s overall costs continue to remain low, with the premium tax rates currently at 0.2% (2/10ths of 1%).

As part of the annual renewal process with each Oxford client, we are communicating the potential for these types of changes. Delaware’s exponential growth and recognition as the US Captive Domicile of the Year requires more actuaries, examiners and staff to ensure it continues to be a well regulated domicile – exactly what Oxford and your clients want from a respected US jurisdiction.

If you have any questions regarding this update, please do not hesitate to call us at 410.472.6490.