At Connecticut’s first Captive Insurance Day at the Capitol May 14, 2013, representatives of the Connecticut Insurance Department (the “CID”), the Connecticut Captive Insurance Association, the Department of Economic and Community Development, and the co-chairs of the Connecticut General Assembly’s Insurance and Real Estate Committee emphasized Connecticut’s continuing efforts to attract new captive insurers to the state, including through SB 1093.
Introduced in March 2013, SB 1093 attempts to modernize Connecticut’s current captive law by: (i) streamlining the procedure for moving foreign captives to Connecticut by making Connecticut’s redomestication statute applicable to captives; (ii) granting the CID Commissioner discretion to allow captives to take credit for reinsurance ceded to reinsurers not otherwise eligible for credit for reinsurance purposes in Connecticut; (iii) expanding the lines of authority that may be written by branch captives; (iv) repealing the requirement that branch captives maintain their principal place of business in Connecticut, and instead simply requiring that they maintain a place of business for their branch captive operations in the state; and (v) narrowing applicability of the Holding Company Act to captives formed as risk retention groups, but authorizing the CID Commissioner to adopt regulations establishing the circumstances under which other Connecticut captives would be subject to the Holding Company Act.
As we reported here, recent amendments to Connecticut’s captive statute effective July 1, 2012 expanded the types of permissible captives and created a tax credit for new captives, among other changes.
Edwards Wildman serves as general counsel to the Connecticut Captive Insurance Association. We will continue to monitor developments on this topic and post updates at InsureReinsure.com.