Substitute House Bill No. 6433 seeks to amend Connecticut's laws regarding captive insurance by repealing and replacing existing sections with updated definitions and provisions. The bill introduces new terms such as "agency captive insurance company," "association captive insurance company," and "industrial insured captive insurance company," while also defining "controlled unaffiliated business" and "insurance securitization." It expands the scope of definitions by inserting "and section 3 of this act" and clarifies the relationships between various insurance entities. Additionally, the bill removes outdated language that previously defined the operations of captive insurance companies, aiming to streamline the regulatory framework and enhance clarity. The changes are set to take effect on October 1, 2025.

Furthermore, the bill outlines specific provisions for sponsored captive insurance companies, including the management and transfer of protected cells. It allows for the sale or transfer of protected cells with the consent of participants and the commissioner's approval, ensuring that such transactions do not affect existing rights or protections. The bill also mandates annual financial reporting and requires that any insolvency of a protected cell be reported within ten business days. Key insertions include provisions for the commissioner to approve asset transfers and establish voting rights for individuals with interests in separate accounts. Overall, the bill aims to modernize the operational framework for captive insurance companies, enhance their flexibility, and clarify regulatory requirements, with a minimal expected fiscal impact starting in FY 26.

Statutes affected:
Raised Bill:
INS Joint Favorable Substitute:
File No. 63: