Raised Bill No. 321 is a legislative proposal that seeks to update the laws governing captive insurance companies, with a focus on the conversion of protected cells within sponsored captive insurance companies. The bill proposes to repeal and replace Section 38a-91aa of the general statutes, effective October 1, 2024, and includes a comprehensive set of definitions for various terms related to captive insurance entities. It also introduces new legal language, such as the inclusion of "and section 2 of this act" after sections 38a-91ww and 38a-91xx, and deletes some existing language from the current law. The bill details the nature of captive insurance entities, their ownership structures, and the types of insurance risks they can cover, as well as the operational terms within the state.

The bill's significant provision allows for the conversion of protected cells into different forms of captive insurance entities, such as a new protected cell, a new sponsored captive insurance company, or a new risk retention group. This conversion is designed to be seamless, maintaining the continuity of the cell's existence and not affecting its assets, rights, benefits, obligations, or liabilities. The conversion process must comply with the relevant general statutes and the company's approved plan of operation. The bill aims to provide flexibility for the restructuring of sponsored captive insurance companies while ensuring the legal and financial stability of the protected cells. The act is set to take effect on October 1, 2024.

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Raised Bill: