Raised Bill No. 6433 seeks to modernize and clarify the regulatory framework for captive insurance companies in the state by repealing Section 38a-91aa and replacing it with new definitions and provisions effective October 1, 2025. The bill introduces expanded definitions for various types of captive insurance companies, such as "agency captive insurance company," "association captive insurance company," and "branch captive insurance company." It also clarifies the roles of affiliated companies, ceding insurers, and industrial insureds, while establishing parameters for insurance securitization. Notably, the bill deletes references to sections 38a-91ww to 38-91yy and adds a reference to section 3 of the act. Additionally, it outlines ownership and control requirements for different types of captives and aims to align the regulatory framework with current industry practices.

Furthermore, the bill addresses the establishment and management of protected cells within sponsored captive insurance companies, detailing requirements for separate accounting, asset transfer restrictions, and commissioner approvals for certain transactions. It repeals and replaces subsection (a) of section 38a-91oo, clarifying that no provisions shall apply to captive insurance companies unless expressly included. The bill also allows for the sale, transfer, or assignment of protected cells between sponsored captive insurance companies with necessary approvals. Key provisions include the ability for the commissioner to separate solvent protected cells from an insolvent company and the assurance that the assets of each protected cell are protected from liabilities of other cells or the general account. Overall, Raised Bill No. 6433 aims to enhance financial accountability and legal protections for participants and sponsors in the captive insurance sector.

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