Bill > SB2043

This bill modifies the examination requirements for captive insurance companies, which are specialized insurance companies formed to insure the risks of their parent companies or affiliated groups. Until December 31, 2031, captive insurance companies, excluding "risk retention captive insurance companies" (companies that insure the risks of multiple unrelated businesses), will be subject to an examination within five years of being licensed, and subsequent examinations will be at the discretion of the Insurance Commissioner. However, starting January 1, 2032, these same captive insurance companies will be required to be examined at least every five years. The bill also mandates that the Insurance Commissioner submit a report to the Legislature before the 2031 legislative session to evaluate the effectiveness of these examination changes. This bill is set to become effective on July 1, 2026.