The Captive Types Nevada Licenses
NRS 694C.060 defines a captive insurer as a licensed pure, association, agency, rental or sponsored captive, or a state-chartered risk retention group. A pure captive may insure only the risks of its parent and affiliated companies or controlled unaffiliated businesses. A sponsored captive funds its participants through protected cells, and a rental captive lets businesses use the captive without owning it. The Commissioner of Insurance and the Division of Insurance regulate Nevada captives.
That range gives a Nevada contractor or developer several entry points: a company of its own, a seat in an association captive or a cell in a sponsored captive. Each is an option for an established firm to evaluate, not a default, and a feasibility review decides whether any of them fits.
How these structures differ in control and shared risk is explained in group, cell and single-parent captives compared.
Capital, Governance and a Nevada Presence
NRS 694C.250 sets minimum capital and surplus of $200,000 for a pure captive, $500,000 for an association captive, $600,000 for an agency captive, $800,000 for a rental captive and $500,000 for a sponsored captive or risk retention group, generally in cash or an irrevocable letter of credit. A dormant captive needs $25,000.
Nevada also asks for a presence in the state. The board meets in Nevada at least once a year, the principal place of business is in Nevada and at least one board member is a Nevada resident.
How capital and governance choices are made is set out in our captive feasibility and formation steps.
What a Nevada Captive May and May Not Write
Under NRS 694C.300, a captive may write the forms of insurance the statute lists, subject to limits. It may not directly provide personal motor vehicle coverage. It may write excess workers' compensation for its parent and affiliates, and it may reinsure a parent's or affiliate's self-funded workers' compensation if that employer is certified by the Commissioner as a self-insured employer. Reinsurance otherwise follows NRS 694C.350.
For a contractor, that typically means general liability and commercial auto layers can be financed in a captive, while primary workers' compensation stays with a carrier or a certified self-insurance arrangement that the captive may support.
How these lines fit a Nevada GC's program is covered in Nevada general contractor licensing and insurance.
Premium Tax and Independently Procured Insurance
NRS 694C.450 taxes direct premiums at 0.4 percent on the first $20 million, 0.2 percent on the next $20 million and 0.075 percent above that, with lower rates on assumed reinsurance. The annual tax has a $5,000 minimum and a $175,000 cap, applied per cell for sponsored captives, and a one-time $5,000 credit applies.
A Nevada insured that buys coverage directly from a nonadmitted insurer pays tax on that independently procured insurance at the rate that applies to authorized insurers, which is 3.5 percent. That matters when a Nevada company joins a captive domiciled in another state.
Nevada Workers' Compensation Beside a Captive
NRS 616B.612 requires covered employers to provide and secure compensation. NRS chapter 616B recognizes three routes: buying from an authorized private carrier, becoming a self-insured employer certified by the Commissioner after showing financial ability and posting security, or joining a certified association of self-insured public or private employers. The Division of Insurance's self-insured workers' compensation section oversees employers and associations under those sections.
Because a Nevada captive may reinsure a certified self-insurer's program and write excess comp for its parent, larger contractors sometimes study self-insurance and a captive together. That combination needs the Commissioner's certifications and careful structuring with counsel.
NDOT and one-call rules for civil firms are covered in Nevada civil contractor insurance and bonds.
Before You Ask for a Quote
What to Gather
- Loss runs for each line for five or more years
- A chart of the parent, affiliates and any controlled unaffiliated businesses
- Financial statements for capital planning
- Current workers' compensation carrier or self-insurance status
- Contracts that require an admitted carrier
What to Ask the Insurer or Surety
- Which Nevada captive type fits our size: pure, association or a sponsored cell?
- What capital will the Division likely expect above the minimum?
- How would the tiered premium tax and the $5,000 minimum apply to us?
- Could the captive support excess or reinsured comp under NRS 694C.300?
- Who will serve as the Nevada-resident director and captive manager?
Quick Answer
Nevada licenses pure, association, agency, rental and sponsored captives under NRS chapter 694C, with capital minimums from $200,000 to $800,000. A captive may not provide personal auto directly but may write excess comp for its parent and reinsure a certified self-insurer, and it pays a tiered premium tax with a $5,000 minimum.
Common Mistake
Planning primary workers' compensation in a Nevada captive. The statute allows excess comp and reinsurance of a certified self-insurer, so primary comp typically stays with a carrier or a certified self-insurance arrangement.
Broker Perspective
Nevada's sponsored and rental structures can let a mid-size firm test a captive without forming a company, so we compare a cell with a pure captive on the same loss data.
Coverage Impact
The captive finances retained layers; coverage terms come from the fronting policies, reinsurance and endorsements issued for the program.
The Same Requirement in Other States
Questions Buyers Ask
How much capital does a Nevada pure captive need?
NRS 694C.250 sets $200,000 of capital and surplus for a pure captive, generally in cash or an irrevocable letter of credit. The Division may expect more for construction risks.
Can a Nevada captive write our workers' compensation?
Not as primary coverage. NRS 694C.300 allows excess workers' compensation for the parent and affiliates and reinsurance of a certified self-insured employer's program.
Does a Nevada captive need anyone based in Nevada?
Yes. The board meets in Nevada at least once a year, the principal place of business is in Nevada and at least one board member is a Nevada resident.
Official Sources
- NRS chapter 694C (captive insurers), Nevada Legislature. Pure, association, agency, rental and sponsored captives; capital and surplus minimums; no direct personal auto; excess workers' compensation and reinsurance of certified self-insurers; tiered premium tax. Verified 2026-10-25.
- NRS chapter 685A (surplus lines and independently procured insurance), Nevada Legislature. An insured whose home state is Nevada pays tax on independently procured insurance at the rate for authorized insurers. Verified 2026-10-25.
- NRS 680B.027 (premium tax rate), Nevada Legislature. Premium tax on authorized insurers at 3.5 percent. Verified 2026-10-25.
- NRS chapter 616B (securing workers' compensation), Nevada Legislature. Employers secure compensation through a private carrier, as a certified self-insured employer or through a certified association of self-insured employers. Verified 2026-10-25.
- Captive Insurers, Nevada Division of Insurance. Describes captives as regulated self-insurance and links the captive types, application and annual filing pages. Verified 2026-10-25.
Reviewed by the Principal, Gleason Insurance Brokers, LLCUpdated
