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onshore captive

A special purpose insurance company domiciled in the country within which its insured risks are located. There are more than 30 onshore domiciles actively competing for U.S. source business—for example, Vermont, South Carolina, Hawaii, and Washington DC. British Columbia is an example of an onshore domicile for Canadian source risks. European countries (with the exception of Dublin and Luxembourg) do not actively promote themselves as captive domiciles—that is, have not passed special purpose legislation to facilitate the formation of captives.

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