# Northern Mariana Islands SB 24-09: CNMI Captive Insurance Act of 2025 Northern Mariana Islands SB 24-09, CNMI Captive Insurance Act of 2025, is a 24th Northern Mariana Islands Legislature (2025-2026) Senate bill sponsored by Celina Roberto Babauta (Democratic); status enacted, last action 2025-06-12 (PL 24-03); PRIA reads it as touching household money (as of 2026-10-12). - Canonical: https://policyrisk.com/state-bill/MP-SB24-09-24 - As of: 2026-10-12 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Bill: Northern Mariana Islands SB 24-09 - State: Northern Mariana Islands - Session: 24th Northern Mariana Islands Legislature (2025-2026) - Title: CNMI Captive Insurance Act of 2025 - Status: enacted - Chamber: Senate - Introduced: 2025-01-27 - Last action: 2025-06-12, PL 24-03 - Sponsor: Celina Roberto Babauta (Democratic) - Cosponsors: 0 - Touches household money: yes - Roll calls: 2 (0 yes, 0 no in all) - Economic provisions PRIA read: 12 ## Summary No summary available. ## Bill overview: provisions PRIA read - Advisory group reviews license applications: benefit, low. A CNMI advisory committee of at least three people reviews captive license applications. It aims to include a CPA, a banker, and an insurance professional, and members with conflicts step aside. The committee recommends within 30 days after it gets required information. It may meet by phone, but me… - Broader investments and reinsurance options: benefit, low. Captives have broad investment choices. The Commissioner can limit risky holdings that threaten solvency or liquidity. Captives can cede and assume reinsurance and take reserve credit when reinsurers meet CNMI rules. The Commissioner can require proof of security and can limit credits. Insurance of… - Confidential filings for captive companies: benefit, low. Information filed by captive companies is confidential. The Commissioner may disclose it only if the public interest requires it or the parent company authorizes it. - Protected cell captives and safeguards: benefit, low. With written approval, a protected cell company can set up named “protected cells.” It must keep each cell’s assets in a separate account and follow the plan using cash or marketable securities. Only a cell’s assets pay that cell’s debts. Income and losses stay with the cell. If assets are mixed, t… - Capital, surplus, and dividend limits: cost, medium. Minimum paid‑in capital: pure $50,000; group stock $100,000; industrial‑insured $150,000; rent‑a‑captive $150,000 for the first client plus $150,000 per extra client up to $750,000; risk retention group $500,000. Minimum free surplus: pure $100,000; group mutual $150,000; industrial‑insured $200,00… - Reporting, audits, exams, and penalties: cost, medium. Pure captives file an audited GAAP statement within 6 months after year‑end. Other captives file an NAIC annual statement by March 1, an audit by June 1, and an RBC report by March 1. A qualified actuary must opine on reserves. Late filings can be fined up to $500 per day. The Commissioner examines… - 2% tax on captive premiums: cost, medium. A captive pays a 2% CNMI tax on premiums and other insurance income. The tax equals 0.02 times your premium income each year. - Application and annual fees for captives: cost, low. A captive pays $500 to apply and $500 each year to renew. A special purpose financial insurance company pays $2,500 to apply and $2,500 to renew. Fees are not refundable. The Commissioner may also bill for outside legal, financial, or exam services. - How to form a captive company: cost, low. Before licensing, you must file your charter, by‑laws, and sworn financials. Show liquidity, your coverage plan, and management experience and character. Tell the Commissioner about any material rate changes within 30 days. You need at least three incorporators, with one CNMI resident, and at least… - CNMI opens captive insurance market: mixed, low. The law lets captive insurers be licensed and based in the CNMI. A licensed captive keeps its main office in the CNMI and names a resident agent. Some non‑domestic companies that held a CNMI certificate for 5 years may continue if they keep a CNMI place of business and qualify. Any CNMI‑chartered c… - No guaranty fund coverage for captives: mixed, low. Captives do not have to join rating groups or pay into guaranty or insolvency funds. Captives, their insureds, parents, and affiliates cannot claim from those funds for captive‑related losses. - Who your captive can insure: mixed, low. A pure captive only insures its parent and affiliates. A group captive insures its member organizations and their affiliates. An industrial‑insured captive insures its group, affiliates, and, as allowed, controlled unaffiliated business. The Commissioner sets control standards. Until rules exist, t… ## Sponsors and cosponsors - Sponsor: Celina  Roberto Babauta (Democratic), Senate ## Roll call votes | Date | Chamber | Motion | Result | Yes | No | Other | | --- | --- | --- | --- | --- | --- | --- | | 2025-05-15 | House | House Final Reading — Passed | pass | | | | | 2025-04-25 | Senate | Senate Final Reading — Passed | pass | | | | ## Actions (4) - 2025-06-12: PL 24-03 (Senate) - 2025-05-15: House Final Reading — Passed (House) - 2025-04-25: Senate Final Reading — Passed (Senate) - 2025-01-27: Introduced (Senate) ## Bill text - 24-09, 2025-01-27: [PDF](https://www.cnmileg.net/documents/senate/sen_bills/24/24-09.pdf) - PL 24-03, 2025-01-27: [PDF](https://www.cnmileg.net/documents/files/23rd%20update/PL%2024-03%20(SB%2024-09%20COMMONWEALTH%20OF%20THE%20NORTHERN%20MARIANA%20ISLANDS%20(CNMI)%20CAPTIVE%20INSURANCE%20ACT%20OF%202025%3B%20AND%20FOR%20OTHER%20PURPOSES).pdf) ## Related bills - HB 24-108: To provide a Budget Plan of the Commonwealth of the Northern Mariana Islands for Fiscal Year 2027 and make appropriations for the operations and activities of… (enacted) - HLB 24-62: To appropriate $500,000.00 from revenues collected for the Third Senatorial District pursuant to Public Law 20-59; and for other purposes. (enacted) - SB 24-48: Establish a Division of Customs and Biosecurity within the DOF (enacted) - HB 24-84: To authorize the expenditure of $2,105,563.00 identified by the Governor as a surplus from Fiscal Year 2025 revenues that shall be appropriated by the Legislat… (enacted) - HB 24-74: To appropriate funds derived from trust interest income from the Marianas Public Land Trust towards payment of household allotments of Nutrition Assistance Pro… (enacted) - HB 24-63: To amend Title 4 sections 1991 to 1995 relating to the 3% construction tax on gross revenues derived from certain non-residential construction projects and to… (enacted) ## Sources - [24-09 (PDF)](https://www.cnmileg.net/documents/senate/sen_bills/24/24-09.pdf) - [PL 24-03 (PDF)](https://www.cnmileg.net/documents/files/23rd%20update/PL%2024-03%20(SB%2024-09%20COMMONWEALTH%20OF%20THE%20NORTHERN%20MARIANA%20ISLANDS%20(CNMI)%20CAPTIVE%20INSURANCE%20ACT%20OF%202025%3B%20AND%20FOR%20OTHER%20PURPOSES).pdf) ## Related - [HB 24-108: To provide a Budget Plan of the Commonwealth of the Northern Mariana Islands fo…](https://policyrisk.com/state-bill/MP-HB24-108-24) - [HLB 24-62: To appropriate $500,000.00 from revenues collected for the Third Senatorial Dis…](https://policyrisk.com/state-bill/MP-HLB24-62-24) - [SB 24-48: Establish a Division of Customs and Biosecurity within the DOF](https://policyrisk.com/state-bill/MP-SB24-48-24) - [HB 24-84: To authorize the expenditure of $2,105,563.00 identified by the Governor as a s…](https://policyrisk.com/state-bill/MP-HB24-84-24) - [HB 24-74: To appropriate funds derived from trust interest income from the Marianas Publi…](https://policyrisk.com/state-bill/MP-HB24-74-24) - [HB 24-63: To amend Title 4 sections 1991 to 1995 relating to the 3% construction tax on g…](https://policyrisk.com/state-bill/MP-HB24-63-24) - [Northern Mariana Islands bills](https://policyrisk.com/states/northern-mariana-islands/bills) - [Northern Mariana Islands state hub](https://policyrisk.com/states/northern-mariana-islands) - [All state legislation](https://policyrisk.com/state-bills) Source: PRIA, https://policyrisk.com/state-bill/MP-SB24-09-24 (as of 2026-10-12).