Bill > HB06433

This bill addresses several key provisions related to captive insurance companies in Connecticut. It expands the applicability of insurance penalty provisions to captive insurance companies and introduces new flexibility for these companies in terms of organizational structure and cell management. Specifically, the bill allows any captive insurance company to convert into one or more protected cells without impacting its existing assets, rights, benefits, obligations, and liabilities. Additionally, the legislation permits any protected cell to be sold, transferred, assigned, or conveyed to a new or existing sponsored captive insurance company, maintaining all of its original assets, rights, benefits, obligations, and liabilities. The bill also grants the insurance commissioner the authority to separate an insolvent protected cell from its sponsored captive insurance company and address the cell's insolvency independently of the company's overall financial condition. These changes aim to provide more operational flexibility and strategic options for captive insurance companies while maintaining regulatory oversight and financial protections. The bill includes detailed definitions of various types of captive insurance companies and establishes specific conditions for the creation, management, and potential restructuring of protected cells within these companies.

Business and Industry

Insurance and Real Estate Committee (J)

https://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&bill_num=HB06433&which_year=2025