Substitute House Bill No. 6433, also known as Public Act No. 25-130, revises the legal framework for captive insurance in Connecticut by repealing Section 38a-91aa and introducing new definitions that clarify terms such as "affiliated company," "agency captive insurance company," and "protected cell." The bill specifies that agency captive insurance companies must be owned or controlled by licensed insurance agents and can only insure risks related to policies sold by those agents, explicitly excluding health insurance risks. Additionally, it establishes provisions for sponsored captive insurance companies, including the introduction of "participant contracts" and the operational structure of protected cells, which are separate accounts for managing assets for participants.

The bill also outlines significant changes, including the ability for captive insurance companies to convert into protected cells with the commissioner's approval, ensuring that such conversions do not affect existing assets, rights, or liabilities. It mandates that each sponsored captive insurance company must attribute assets and liabilities according to an approved plan of operation and requires annual financial reporting to the commissioner. Furthermore, it emphasizes the segregation of assets and liabilities for each protected cell, ensuring that creditors can only recourse against the specific cell's assets. The effective date for these changes is set for October 1, 2025, aiming to modernize and enhance the regulatory framework for captive insurance companies in Connecticut.

Statutes affected:
Raised Bill:
INS Joint Favorable Substitute:
File No. 63:
Public Act No. 25-130: