Seal of the Federated States of Micronesia

Applications: Application Forms

WELCOME to the Application Forms Section of our website. This section will provide you with general guidelines on the various application forms and how to apply for license or registration in order to engage in insurance business in the country, whether be REGULAR INSURANCE, CAPTIVE INSURANCE or CAPTIVE MANAGER:

  1. For Regular Insurance License:
    1. Domestic Insurer Application
    2. Insurance Intermediary Application
  2. For Registration of Foreign Insurer (Regular Insurance):
    1. Schedule 5(E) – Operational Document
    2. Schedule 5(E-1) – Personal Affidavit
    3. Schedule 5(E-2) – Corporate Affidavit
    4. Schedule 5(E-3) – Escrow Account Agreement
    5. Form 5 – Appointment of Representative Resident
  3. For Captive Insurance License:
    1. Captive Insurance Company Application
    2. Captive Insurance Manager Application


  1. Normally, each application comes with an instruction guideline which should be read before completing the application.
  2. All questions must be answered accurately and thoroughly. If a question is not applicable so state by “NOT APPLICABLE” instead of “N/A.”
  3. All supporting documents must be labeled according to the application form and respective question for which the document(s) is intended.
  4. An “Executive Summary” should be included in each application.
  5. An application should be filed under a cover letter signed by the authorized officer. 

Feel free to contact us if you need assistance and/or clarification on the appropriate application form, etc.

General Application Guidelines for Regular Insurance: Section 302 of the Act provides the general statutory licensing requirements for domestic insurer, agent, broker and solicitor, while Section 307 provides general statutory requirements on registration of foreign insurer. Subsection 5 of Section 301 of the Act provides for premium collection threshold requirement to assist a foreign insurer on whether to apply for licensure or registration. It states “A foreign insurer who receives two million dollars or more in income from premiums collected in the Federated States of Micronesia in each fiscal year for three consecutive fiscal years shall be required to become licensed as an insurer.” Note further that Subsection 6 of Section 301 requires that “A foreign insurer who does not make the premium collections described in [Subsection 5] shall be permitted to do business through a person licensed as an agent if the foreign insurer is registered, unless such foreign insurer chooses to be licensed as an insurer instead.” Subsection 7 of Section 301 of the Act provides that a licensed agent may conduct business on behalf of more than one insurer, provided the agent applies for a separate license for each insurer it represents. 

Domestic Insurer: A domestic insurer is an insurance company incorporated and having its head office in the Federated States of Micronesia. Only domestic insurer, agent, broker and solicitor are qualified for license. They must first be licensed prior to engaging in insurance business pursuant to Section 301 of the Act. An insurer must be a company incorporated under the laws of the FSM, while an agent, broker or solicitor could be a legal person as a sole proprietorship, partnership or corporation. The minimum capital requirement for an insurer is USD $100,000.  

For incorporation of business (i.e. an insurer), refer to Title 36 of FSMC or contact the FSM Department of Justice, Registrar of Corporations.

Foreign Insurer: A foreign insurer, on the other hand, if not meeting the premium threshold requirement stipulated in Subsection 5 of Section 301, may opt for registration in order to engage in insurance business in the FSM through a licensed agent, unless the foreign insurer wishes to become a domestic insurer, instead. Registration requirements are specified in Section 307 of the Act, including but not limited to the appointment of a licensed agent in the FSM by the foreign insurer, posting of a bond or deposit into an escrow account of USD $100,000, standing and clearance from the foreign insurer’s home regulatory authority, designation of a person for service of process, among a few other requirements. A foreign insurer applying for marine, aviation and transportation (MAT) is exempt from posting the bond or deposit of USD $100,000 into the escrow account. A registered foreign insurer is deemed and held to be doing business in the Federated States of Micronesia. For further information or clarifications, refer to the Registration Application form, or contact us. A foreign insurer is required to apply for Foreign Investment Permit from the FSM Department of Resources and Development.   

Agent or Broker: Intermediary insurance business (agent, broker or solicitor) can be owned by a citizen or non-citizen. Regardless of ownership and form of business (sole proprietorship, partnership, corporation, etc.), the agent, broker or agent must apply for license in order to engage in intermediary insurance business in the country. If the agent or broker business has foreign ownership interest, the first step is to apply for Foreign Investment Permit from the FSM Department of Resources and Development. In the case of a licensed agent, it may conduct business on behalf of more than one insurer, provided the agent is licensed for each insurer it represents. In the case where the agent or broker is a corporation, it must be incorporated by the FSM Department of Justice, Registrar of Corporations.

General Application Guidelines for Captive Insurance: Generally, the application process for a captive entails the following (not necessarily in order), in addition to those mentioned in the “The Insurance Act of 2006” page:

  1. An introductory meeting with the Board should be arranged by the proposed captive. The objective of the meeting is to discuss the proposed captive and obtain initial reactions.  The introductory meeting can be arranged directly with us, or through Micronesia Registration Advisors, Inc. (MRA), or the captive’s proposed manager. A list of all approved captive managers is found at the captive manager’s page.
  2. Prepare the necessary incorporation documents (constitutional documents) to be filed with the Registrar of Corporations. Service of a lawyer or legal firm in the FSM may be desirable in the process of constituting or incorporating your captive insurance company or captive insurance management firm.  
  3. Completethe captive insurance application forms, or captive insurance managerapplication forms. In the case of captive insurance applicant, consider engaging the service of a licensed captive manager in the process of completing and filing your application.
  4. The Incorporation Documents (Constitutional Documents) and Captive Insurance Application for license can be filed concurrently in the interest of time and efficiency. However, a copy of the draft constitutional documents should be filed with the Board with your application for license, followed by the filing of the approved constitutional documents (i.e. approved Articles of Incorporation, Certificate of Incorporation and Charter). Without the approved constitutional documents filed, the Board will not be able to issue the license, even if the required capital is already met by the applicant.
  5. Normally, an independent captive application reviewer is engaged by the Board, the cost of which will be paid by the applicant. Reviewer’s fee can range between USD $4,000 to roughly USD $12,000 depending on various factors, such as the Class and sophistication of the application.
  6. An application fee of USD $500.00 payable to the Insurance Board, FSM National Government in the form of a check or wire-transfer, due upon filing of the application.
  7. A license fee of USD $500.00 payable to the Insurance Board, FSM National Government prior to the issuance or release of License. Payment of license fee can be in the form of a check or wire-transfer.
  8. Similarly, the captive applicant must meet the minimum capital requirement by filing with the Board authentic document, such as bank statement, prior to licensure.
  9. Currently, there is no application and license fee for Captive Manager.
  10. If the applicant is redomesticating, requirements under Section 1006 of the Act will apply.

Ample time should be allowed for the review of your application.

Annual License Renewal Fee:
Annual License Renewal fee of USD $500.00 is required by March 31 each year to coincide with annual license cycle.