Substitute House Bill No. 6433, also known as Public Act No. 25-130, revises the legal framework for captive insurance in the state by repealing Section 38a-91aa and introducing a new definition section that clarifies terms such as "affiliated company," "agency captive insurance company," and "branch captive insurance company." The bill emphasizes the regulatory standards for various types of captive insurance companies, including those owned by insurance agents and the requirements for "industrial insured" entities. It also introduces the term "section 3 of this act," indicating additional relevant provisions. The legislation aims to modernize the regulatory environment for captive insurance, with an effective date of October 1, 2025.

The bill further details the management and operation of sponsored captive insurance companies, particularly regarding protected cells. It establishes that liabilities from other insurance businesses cannot affect the assets of a protected cell and requires consent for asset transfers between cells. Each sponsored captive insurance company must maintain separate accounting for its protected cells and file annual financial reports with the commissioner. Additionally, the bill allows for the conversion of insolvent protected cells into new captive insurance companies while ensuring that the assets of each cell are exclusively for its own claims. Overall, the legislation enhances operational flexibility and regulatory clarity for captive insurance companies in the state.

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