The bill amends existing laws regarding captive insurance companies, specifically addressing the regulations surrounding risk retention groups and reporting requirements. A significant insertion prohibits risk retention groups from making loans or investments in their members or affiliates, effective January 1, 2026. Additionally, the bill modifies the reporting obligations for captive insurance companies, allowing them to report using various accounting principles and requiring them to submit annual and quarterly statements to the National Association of Insurance Commissioners (NAIC). The bill also introduces new requirements for protected cells, mandating that they file a certifying statement within 30 days of commencing business to confirm they possess the necessary funding.

Furthermore, the bill includes provisions for the Commissioner to propose reporting forms for different types of captive insurance companies and allows for the adoption of additional filing requirements for risk retention groups. It establishes a timeline for the submission of quarterly statements and specifies that all financial statements must be filed electronically with the NAIC. The act is set to take effect on July 1, 2026.

Statutes affected:
As Introduced: 8-6010, 8-6007
As Passed By the House -- Official: 8-6010, 8-6007
As Passed By the House -- Unofficial: 8-6010, 8-6007
As Passed by Both House and Senate -- Official: 8-6010, 8-6007
As Passed by Both House and Senate -- Unofficial: 8-6010, 8-6007
As Enacted: 8-6010, 8-6007