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 and provisions. The bill clarifies terms related to various types of captive insurance companies, including "agency captive insurance company," which is defined as one owned or controlled by licensed insurance agents that insures risks related to policies sold through those agents. It also outlines the regulatory standards for different captive insurance entities, such as "branch captive insurance company" and "special purpose financial captive insurance company." The bill replaces the conjunction "and" with "and section 3 of this act" in certain sections to enhance clarity.

Additionally, the bill focuses on sponsored captive insurance companies, detailing the management of protected cells, which are separate accounts for managing assets for participants. It establishes that liabilities from other insurance businesses cannot affect the assets of a protected cell and requires consent for asset transfers between cells. The bill mandates that each sponsored captive insurance company must maintain separate accounting for each protected cell and file annual financial reports with the commissioner. A significant provision allows the commissioner to convert an insolvent protected cell into a new captive insurance company, ensuring the continuity of its assets and obligations. Overall, the bill aims to modernize and streamline the regulations governing captive insurance in Connecticut, effective October 1, 2025.

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