Bill > HB5384

This bill modifies the Insurance Code of 1956, specifically section 4667, to update regulations concerning sponsored captive insurance companies, which are a type of insurance company established by a sponsor to insure the risks of its participants. The key changes include clarifying that various business entities, including associations, corporations, limited liability companies, partnerships, and trusts, can be participants in these companies, and that a "sponsor" (the entity that establishes the captive) can also be a participant. Importantly, the bill removes the requirement for a participant to be a shareholder of the sponsored captive insurance company or an affiliate of it, and it expands the types of risks a participant can insure through the company to include their own risks, the risks of their affiliates, or the risks of controlled unaffiliated businesses, unless the director, who oversees insurance matters, grants specific approval.