Disqualified Captive Insurance Companies

A disqualified captive insurance company is a captive insurance company that either:

• Pays less than 0.5% of its total premiums in the taxable year in tax under Minnesota Statute 297A or a comparable tax of another state
• Receives less than 50% of its gross receipts for the taxable year from premiums

A captive insurance company derives less than 50% of its total premiums for the taxable year from sources outside the unitary business and is licensed as a captive insurance company.