A Hawaii captive insurance company application is the packet of documents a business sends to the Hawaii Insurance Division Captive Branch to win a Certificate of Authority and run its own licensed insurance company in the islands. Any company that wants to insure its own risks through a Hawaii-domiciled captive must file this packet, and the heart of it is the Petition for a Certificate of General Good plus the Certificate of Authority application that follow it.
Getting the packet wrong is costly. The state charges a $1,000 nonrefundable application fee under Hawaii Administrative Rules § 16-17-6, so a rejected or sloppy filing burns real money and months of work. Hawaii is no small player either, with 272 licensed captives as of March 31, 2026 per the state’s 2026 Captive Insurance Fact Sheet, which means the Insurance Division reviews these filings with a sharp and practiced eye.
Here is what you will learn in this guide:
- 📋 How to complete every part of the Hawaii captive packet, from the name reservation to the final Certificate of Authority request.
- 🧮 How to pick the right captive class and meet the exact capital and surplus floor the Commissioner sets.
- 🧑💼 How to work with your required captive manager so the filing clears review the first time.
- 💸 How to anchor the real fees, premium tax rates, and deadlines so nothing surprises you later.
- ⚠️ How to dodge the field-level mistakes that trigger holds, rejections, and lost application fees.
What the Hawaii Captive Application Is and Who Must File It
The Hawaii captive application is the formal request to the Insurance Commissioner for permission to form and operate a captive insurance company in the state. A captive is a closely held insurer that covers the risks of its owners and their affiliates, and Hawaii has licensed them since its captive law passed in 1986. The application proves to the state that your proposed insurer is sound, well-managed, and backed by enough money to pay claims.
The law that drives all of this is Hawaii Revised Statutes, Chapter 431, Article 19, often called the Captive Insurance Act. The rules that flesh it out live in Hawaii Administrative Rules Title 16, Chapter 17. The agency that reviews and decides every application is the Department of Commerce and Consumer Affairs (DCCA), Insurance Division, Captive Insurance Branch in Honolulu.
Any business that wants to self-insure through a Hawaii captive must file. This includes a single company forming a pure captive, a trade group forming an association captive, and a foreign or alien captive that wants to move its home base to Hawaii, known as redomestication, under HRS § 431:19-102.3. One rule applies to all of them: every captive must hire an approved captive insurance manager before it can file. You cannot file this packet alone.
The application solves a specific problem. A company with steady, predictable losses often overpays a commercial insurer for coverage it could fund itself. A captive lets that company keep the underwriting profit and tailor coverage to its own needs, but only if the state agrees the plan is safe for policyholders. The application is how the state makes that call.
Before You Start: Documents and Information You Need
Hawaii reviews captive applications closely, so gather every piece before you open a single document. Missing items are the top reason a packet stalls in review. Here is your pre-filing checklist.
- A reserved company name. You need a name that is not deceptively similar to any existing Hawaii business, or the Business Registration Division will reject your formation documents and delay your Certificate of Authority.
- An approved captive insurance manager. The Commissioner approves managers case by case, and without one your application cannot move forward at all.
- A business plan. This explains the captive’s purpose, the lines of coverage, and the projected growth; a vague plan invites questions and slows approval.
- An actuarial feasibility study. This pro forma analysis shows the captive can pay claims and stay solvent, and a weak study is a common cause of rejection.
- Pro forma financial statements. These projected balance sheets and income statements for at least five years prove the numbers work, and gaps here trigger a request for more data.
- Biographical affidavits for officers and directors. The state vets the people running the captive, and a missing or incomplete affidavit halts the background review.
- Proposed capital and surplus amount. You must state how much money you will put in, and falling below the class floor blocks the license outright.
- Draft formation documents. Articles of incorporation, an operating agreement, or organization papers must be ready, because the Certificate of Authority cannot issue until these are filed with the state.
- The $1,000 application fee. This nonrefundable fee under § 16-17-6 must accompany the packet, or the Division will not begin its review.
Collect these in one folder before drafting. Maria Chen, a risk manager at a hospital group, learned this the hard way when her actuarial study arrived two weeks after the rest of her packet and pushed her timeline back a full month.
Where to Get the Form and How to Access It
Hawaii does not post a single downloadable PDF named “captive application.” Instead, the Insurance Division works from a packet built around the Petition for a Certificate of General Good and the supporting documents your captive manager assembles. The official starting point is the DCCA Captive Insurance page, which links to the fact sheet, the fee schedule, and the steps to create a captive.
The required process starts with people, not paper. Before any document is filed, you must arrange an introductory meeting or teleconference with the Captive Insurance Administrator, per the state’s Steps to Create a Captive. This call introduces the organizers and explains the who, what, where, and how of the proposed captive. Skipping it is not an option, because the Division will not accept a packet from a filer it has never spoken to.
All captive applications, business plan amendments, and conditional filings go to one email address: captiveins@dcca.hawaii.gov. The Captive Branch sits at 335 Merchant Street, Room 213, Honolulu, Hawaii 96813. Because the forms are not available online, your approved captive manager prepares them in the format the Division expects, which is one more reason the manager is required.
Step-by-Step: How to Fill Out the Hawaii Captive Application Line by Line
The packet moves through ten stages in the order set by the Steps to Create a Captive. Each stage below is a field or section you must complete. Follow them in order, because each one feeds the next.
1. Proposed Captive Name
What it asks in plain English: This field asks for the legal name you want your captive insurance company to carry.
How to answer it: Enter the full proposed name exactly as you want it registered, including the entity tag such as Inc., LLC, or Reciprocal. Run a search on the Hawaii Business Name Search first to confirm it is open.
Example entry: Koa Ridge Risk Insurance, Inc. is what Maria Chen enters for her hospital group’s pure captive.
A nuance or edge case: If your top choice is taken, have a second and third name ready, because waiting to brainstorm a new name after a rejection adds days to your timeline.
A common mistake and its consequence: Picking a name that is deceptively similar to an existing Hawaii business gets the formation documents bounced by the Business Registration Division, which stalls the entire Certificate of Authority.
A misconception: Many filers think reserving the name with one division clears it for the captive, but the Insurance Division and Business Registration Division review names separately, so approval in one does not guarantee the other.
2. Captive Insurance Manager Designation
What it asks in plain English: This section asks you to name the licensed captive manager who will run the day-to-day compliance for your captive.
How to answer it: List the firm’s full legal name, its Hawaii contact, and a short statement of its experience. The Commissioner approves the manager case by case, so include the firm’s track record with similar captives.
Example entry: Pacific Captive Management LLC is the firm Marcus Reed, a construction company owner, names for his deductible-reimbursement captive.
A nuance or edge case: If your chosen manager is new to Hawaii, expect extra questions, because the Commissioner weighs whether the firm has the depth to handle local and multi-jurisdictional rules.
A common mistake and its consequence: Naming a manager before confirming the firm is approved means your packet can sit unreviewed until a qualified manager is in place.
A misconception: Some owners believe they can manage the captive themselves to save money, but Hawaii requires an approved manager for every captive, with no exceptions.
3. Introductory Meeting Confirmation
What it asks in plain English: This step records that you held the required intro meeting or teleconference with the Captive Insurance Administrator.
How to answer it: Schedule the call through your manager, attend with your key officials, and note the date in your filing cover letter. The purpose is to explain the proposed captive to the Administrator.
Example entry: Maria Chen writes Introductory teleconference held 02/10/2026 with Captive Insurance Administrator in her cover letter.
A nuance or edge case: If your ownership group is large, bring only the key decision-makers, because the meeting is meant to introduce leadership, not the full roster.
A common mistake and its consequence: Filing the packet before the meeting happens leads the Division to set the application aside until the call takes place.
A misconception: Filers often think the meeting is a formality they can skip, but it is a hard requirement and the Administrator uses it to gauge whether the project is serious and sound.
4. Petition for Certificate of General Good
What it asks in plain English: This is the core request asking the Commissioner to find that licensing your captive serves the general good of Hawaii.
How to answer it: State the captive’s purpose, its proposed class, the risks it will insure, and why Hawaii is the right domicile. Attach the business plan, the actuarial feasibility study, and the pro forma financials.
Example entry: Marcus Reed petitions for a Class 2 pure captive to insure workers’ compensation deductible reimbursement for affiliated construction entities.
A nuance or edge case: A redomesticating captive moving into Hawaii files this petition too, but under HRS § 431:19-102.3, and must add its current home-state license details.
A common mistake and its consequence: Submitting a thin business plan or a weak feasibility study draws a detailed list of follow-up questions that can add weeks to review.
A misconception: Many assume the “general good” finding is automatic once the money is in place, but the Commissioner can deny a petition that fails to show real benefit or sound management.
5. Captive Class Selection
What it asks in plain English: This field asks which of Hawaii’s five captive classes fits your structure.
How to answer it: Match your ownership and coverage to the class table from the 2026 Fact Sheet. Class 1 is single owner, reinsurance only; Class 2 is single owner, direct and reinsurance; Class 3 is multi-owner, association or risk retention; Class 4 is a sponsored captive; Class 5 is reinsurance or excess insurance only.
Example entry: Aloha Builders Trade Association selects Class 3 because many member companies share the risk pool.
A nuance or edge case: A sponsored or cell captive that rents capacity to unrelated participants belongs in Class 4, which carries its own capital rules.
A common mistake and its consequence: Choosing the wrong class sets the wrong capital floor and license fee, which forces a refiling and a new round of review.
A misconception: Some filers think the class is just a label, but it directly sets your minimum capital, your annual fee, and the kinds of coverage you may write.
6. Minimum Capital and Surplus Statement
What it asks in plain English: This field asks how much money you will put into the captive to back its promises.
How to answer it: Enter the dollar amount, which must meet or beat the class floor: $100,000 for Class 1, $250,000 for Class 2, $500,000 for Class 3 and Class 4, and an amount set by the Commissioner for Class 5, per the Fact Sheet. The Commissioner can require more based on your specific program.
Example entry: Maria Chen’s hospital captive lists $300,000 for a Class 2 captive, above the $250,000 floor, to give a cushion for malpractice claims.
A nuance or edge case: Even if you hit the class minimum, the Commissioner can demand higher capital when the risk profile is large or volatile, so the floor is a starting point, not a ceiling.
A common mistake and its consequence: Funding only the bare minimum for a high-risk line can prompt the Commissioner to require more before issuing the license, which delays the launch.
A misconception: Filers often believe the listed minimum is always enough, but the Commissioner sets the final required capital based on each program’s actual exposure.
7. Formation Documents
What it asks in plain English: This section asks for the legal papers that create your company, such as articles of incorporation or an operating agreement.
How to answer it: Prepare the documents to match your chosen structure, which can be stock, mutual, non-profit, reciprocal, or LLC. Draft them for Insurance Division review first, then file the final versions with the Business Registration Division after the Certificate of General Good issues.
Example entry: Marcus Reed files Articles of Incorporation for Pacific Trade Captive, Inc. as a stock company.
A nuance or edge case: A reciprocal captive files through an Attorney-In-Fact rather than standard officers, so its formation papers and later certifications differ.
A common mistake and its consequence: Filing formation documents with Business Registration before the Certificate of General Good issues wastes the $50 incorporation fee if the captive is later denied.
A misconception: Some think they must incorporate first and apply later, but Hawaii has you secure the Certificate of General Good before filing final formation papers.
8. Application Fee Payment
What it asks in plain English: This step asks you to pay the nonrefundable fee that covers the state’s review of your application.
How to answer it: Include the $1,000 application fee with your packet, as required by § 16-17-6. This fee covers examining, investigating, and processing your license application.
Example entry: Aloha Builders Trade Association submits a $1,000 check with its Class 3 packet.
A nuance or edge case: The $50 initial incorporation fee and the $15 annual business registration fee are separate and paid to Business Registration, not the Insurance Division.
A common mistake and its consequence: Sending the packet without the fee means the Division will not start its review, so your clock does not even begin.
A misconception: Many assume the fee is refundable if the application fails, but it is nonrefundable, so a weak filing means losing the full $1,000.
9. Certificate of Authority Application and Officer Certification
What it asks in plain English: After the Certificate of General Good issues and formation papers are filed, this step asks the Commissioner to issue the actual license, the Certificate of Authority.
How to answer it: Submit the appropriate forms to the Insurance Division along with a certification from any two of the captive’s principal officers, its Attorney-In-Fact for a reciprocal, or its governing body’s authorized representative, attesting to the captive’s financial condition.
Example entry: Maria Chen and the captive’s treasurer both sign the certification stating capital of $300,000 is fully paid in.
A nuance or edge case: For a reciprocal captive, the Attorney-In-Fact signs in place of two officers, so confirm who holds signing authority before this step.
A common mistake and its consequence: Submitting a certification signed by only one officer fails the two-signer rule and bounces the request for the license.
A misconception: Filers often think the Certificate of General Good is the license, but it is only the approval to form; the Certificate of Authority is the actual license to operate.
10. Annual License Fee on Approval
What it asks in plain English: Once the Commissioner approves, this step asks for the license fee that turns approval into an active certificate.
How to answer it: Pay the class-based fee from § 16-17-6: $300 for Class 1 or 2, $500 for Class 3, and $1,000 for Class 4 or 5. This same amount becomes your annual renewal fee, due each year by April 1.
Example entry: Aloha Builders Trade Association pays the $500 Class 3 license fee on approval.
A nuance or edge case: A captive licensed late in the year still owes its full renewal fee by the next April 1, so plan cash flow around that date.
A common mistake and its consequence: Missing the April 1 renewal can put the certificate at risk and expose the captive to late penalties.
A misconception: Some believe the application fee and license fee are the same payment, but they are separate, with the license fee due only after approval.
Three Filled-Out Examples Using Real Scenarios
These three named filers show how different businesses move through the same packet.
Scenario 1: Maria Chen, hospital group forming a pure captive for malpractice risk.
| Form Section | What Maria Enters |
|---|---|
| Proposed Captive Name | Koa Ridge Risk Insurance, Inc. |
| Captive Manager | Pacific Captive Management LLC |
| Intro Meeting | Teleconference held 02/10/2026 |
| Captive Class | Class 2 (single owner, direct and reinsurance) |
| Lines of Coverage | Medical malpractice and general liability |
| Capital and Surplus | $300,000 |
| Formation Structure | Stock corporation |
| Application Fee | $1,000 |
| Officer Certification | Signed by CFO and Treasurer |
| License Fee on Approval | $300 |
Scenario 2: Marcus Reed, construction firm forming a pure captive for deductible reimbursement.
| Form Section | What Marcus Enters |
|---|---|
| Proposed Captive Name | Pacific Trade Captive, Inc. |
| Captive Manager | Island Captive Advisors LLC |
| Intro Meeting | Teleconference held 03/05/2026 |
| Captive Class | Class 2 (single owner, direct and reinsurance) |
| Lines of Coverage | Workers’ compensation deductible reimbursement |
| Capital and Surplus | $250,000 |
| Formation Structure | Stock corporation |
| Application Fee | $1,000 |
| Officer Certification | Signed by President and VP of Finance |
| License Fee on Approval | $300 |
Scenario 3: Aloha Builders Trade Association forming a Class 3 association captive.
| Form Section | What the Association Enters |
|---|---|
| Proposed Captive Name | Aloha Builders Mutual Insurance |
| Captive Manager | Hawaii Risk Managers LLC |
| Intro Meeting | Teleconference held 04/01/2026 |
| Captive Class | Class 3 (multi-owner, association) |
| Lines of Coverage | General liability and property for members |
| Capital and Surplus | $500,000 |
| Formation Structure | Mutual company |
| Application Fee | $1,000 |
| Officer Certification | Signed by Board Chair and Secretary |
| License Fee on Approval | $500 |
How to File the Completed Form
Hawaii routes captive applications through one main channel, with paper steps for the formation side. Follow each path in order so nothing falls through.
Email submission to the Insurance Division. All captive applications, business plan amendments, notifications, and conditional filings go to captiveins@dcca.hawaii.gov, per the DCCA Captive page. There is no separate online portal for the application itself. Your captive manager assembles the packet and sends it from a tracked email so you keep proof of the send date and time. Expect the Division’s review, often with an independent advisor, to run several weeks depending on complexity.
Mail and in-person backup. The Captive Branch is at 335 Merchant Street, Room 213, Honolulu, Hawaii 96813, and you can reach it at (808) 586-0981. Use this address if the Division asks for original signed documents or checks. Keep a stamped copy or delivery receipt as your proof of filing.
Formation filing with Business Registration. After the Certificate of General Good issues, file your formation documents with the Business Registration Division along with the $50 incorporation fee and the $15 annual business registration fee. Payment is typically by check or the state’s online system. Keep the stamped formation documents, because the Insurance Division needs proof of filing before it issues the Certificate of Authority.
Application fee payment. The $1,000 application fee accompanies the packet, paid by check to the Insurance Division. Save a copy of the check and the cover letter as your record.
What Happens After You File
Once your packet lands, the Insurance Division reviews it, sometimes with an independent advisor chosen by the Commissioner. The reviewers test the business plan, the actuarial study, and the capital level to confirm the captive can pay claims and stay solvent. They may send follow-up questions, and quick, complete answers keep the timeline short.
When the Division is satisfied, the Commissioner issues the Certificate of General Good along with a notice of approval. You then file your formation documents with Business Registration, pay the formation fees, and return to the Insurance Division with the two-officer certification of financial condition. Only after these steps does the Commissioner issue the Certificate of Authority, your actual license to operate.
The work does not stop at the license. Your captive must keep its principal place of business in Hawaii, appoint a resident agent, hold at least one board meeting a year in the state, and renew the certificate by April 1 each year. Class 1, 2, 4, and 5 captives file annual audited financial statements, while Class 3 captives file on prescribed NAIC forms, per the Steps to Create a Captive. The Division can examine any captive at intervals up to five years.
You will also owe annual premium tax on the captive’s premiums. The rate steps down as premiums grow: 0.25% on the first $25 million, 0.15% from $25 million to $50 million, 0.05% from $50 million to $250 million, and 0% above $250 million, with a $200,000 maximum and no minimum, per the DCCA Captive page.
Mistakes to Avoid When Filling Out the Form
- Filing without an approved captive manager. The packet sits unreviewed until an approved manager is in place.
- Skipping the introductory meeting. The Division sets the application aside until the required call happens.
- Choosing the wrong captive class. This sets the wrong capital floor and fee, forcing a costly refiling.
- Funding only the bare minimum capital. The Commissioner may demand more for a risky program and delay the license.
- Submitting a weak business plan. A thin plan draws a long list of follow-up questions and stretches review.
- Leaving out the actuarial feasibility study. Without it, the Division cannot judge solvency and the packet stalls.
- Picking a name already in use. Business Registration bounces the formation documents and delays the certificate.
- Filing formation papers before the Certificate of General Good. A later denial wastes the incorporation fee.
- Sending the packet without the $1,000 fee. The Division will not begin its review.
- Submitting a one-signer certification. It fails the two-officer rule and bounces the license request.
- Missing the April 1 renewal. This risks the certificate and triggers late penalties.
- Forgetting the resident agent and Hawaii office. This breaks an ongoing requirement and can jeopardize the license.
Do’s and Don’ts
Do’s
- Do hire an approved captive manager early, because the Commissioner must clear the firm before the packet moves.
- Do hold the intro teleconference first, since the Division will not accept a packet from a filer it has not met.
- Do match your class to your structure, because it sets your capital floor and your fees.
- Do over-fund capital for risky lines, since the Commissioner can require more than the class minimum.
- Do keep proof of every filing and payment, because you may need to show the send date or fee receipt.
- Do answer follow-up questions fast, since quick replies keep the review on schedule.
Don’ts
- Don’t try to self-manage the captive, because Hawaii requires an approved manager for every captive.
- Don’t skip the feasibility study, since the Division cannot confirm solvency without it.
- Don’t reuse an existing business name, because it gets the formation documents rejected.
- Don’t file formation papers too early, since a denial wastes the incorporation fee.
- Don’t treat the application fee as refundable, because a weak filing loses the full $1,000.
- Don’t miss the April 1 renewal, since late filing puts the certificate at risk.
Pros and Cons of Filing on Your Own vs. With Help
In Hawaii, filing entirely on your own is not allowed, since a captive manager is required, but you still choose how much of the work your own team handles versus your advisors.
Pros of leaning on professional help
- Higher first-pass approval, because experienced managers know what the Division expects.
- Stronger feasibility studies, since actuaries build numbers the reviewers trust.
- Faster review, because complete packets draw fewer follow-up questions.
- Required compliance covered, since the manager handles the mandatory ongoing duties.
- Fewer costly errors, because pros catch class and capital mistakes before filing.
Cons of leaning on professional help
- Higher upfront cost, because manager and actuary fees add up.
- Less direct control, since advisors drive much of the process.
- Ongoing dependence, because the manager relationship continues for the life of the captive.
- Slower internal learning, since your team may not master the details itself.
- Coordination effort, because juggling manager, actuary, and counsel takes time.
Hawaii Captive Class Reference
| Class | Description and Minimum Capital |
|---|---|
| Class 1 | Single owner, reinsurance only; minimum capital $100,000 |
| Class 2 | Single owner, direct and reinsurance; minimum capital $250,000 |
| Class 3 | Multi-owner, association or risk retention; minimum capital $500,000 |
| Class 4 | Sponsored captive; minimum capital $500,000 |
| Class 5 | Reinsurance or excess insurance only; capital set by Commissioner |
These figures come straight from the 2026 Captive Insurance Fact Sheet, and the Commissioner can raise any floor based on a program’s risk.
FAQs
Is a captive insurance manager required to file the Hawaii application?
Yes. Hawaii requires every captive to use a captive insurance manager approved by the Commissioner case by case. You cannot file or operate a captive without one.
Is the $1,000 application fee refundable if my application is denied?
No. The application fee is nonrefundable under Hawaii Administrative Rules § 16-17-6. It covers the state’s review work whether or not your captive is approved.
Is the introductory meeting with the Administrator mandatory?
Yes. Every prospective applicant must hold an intro meeting or teleconference with the Captive Insurance Administrator before filing. The Division will not accept a packet without it.
Do I select my captive class in the application or does the state assign it?
No. You select the class that matches your ownership and coverage, and the state confirms it. The class sets your capital floor and your fees.
Do I enter the class minimum or a higher amount in the capital and surplus field?
Yes. You must at least meet the class floor, but the Commissioner can require more for a risky program, so many filers enter a cushion above the minimum.
Is the Certificate of General Good the same as the license?
No. The Certificate of General Good is only approval to form the captive. The Certificate of Authority is the actual license to operate.
Do I need two officers to sign the financial condition certification?
Yes. Any two principal officers must sign, or the Attorney-In-Fact for a reciprocal captive, or the authorized representative of the governing body.
Is a foreign captive allowed to move its domicile to Hawaii?
Yes. A captive can redomesticate to Hawaii under HRS § 431:19-102.3 by petitioning for a Certificate of General Good and including a nonrefundable application fee.
Do I file formation documents before or after the Certificate of General Good?
No. You file final formation documents with Business Registration only after the Certificate of General Good issues, not before.
Is there a minimum premium tax on a Hawaii captive?
No. Hawaii charges no minimum premium tax, caps the tax at $200,000, and taxes only the captive’s premiums at graduated rates.
Do I pay the license fee at the same time as the application fee?
No. The $1,000 application fee comes with the packet, while the class-based license fee is due only after the Commissioner approves your captive.
Is the captive required to keep an office and meet in Hawaii?
Yes. The captive must keep its principal place of business in Hawaii, appoint a resident agent, and hold at least one board meeting a year in the state.
Do Class 3 captives file different annual statements than other classes?
Yes. Class 3 captives file on prescribed NAIC forms, while Class 1, 2, 4, and 5 captives file audited financial statements under approved accounting standards.
Is the application available as a downloadable PDF online?
No. Hawaii’s captive forms are not posted online. Your approved captive manager prepares the packet in the format the Division expects.
Related reading
- How to Fill Out Pennsylvania Captive Insurance Application (w/Examples) + FAQs
- How to Fill Out the Massachusetts Captive Insurance Company Application + FAQs
- How to Fill Out the Delaware Captive Insurance Company Application + FAQs
- How to Fill Out the Montana Captive Insurance Company Application + FAQs
- How to Fill Out the Utah Captive Insurance Company Application + FAQs
- How to Fill Out the Vermont Captive Insurance Company Application + FAQs