Connecticut Insurance Department Releases Bulletin Concerning Financial Reporting Requirements for Captives

The Connecticut Insurance Department (“CID”) recently released Bulletin No. FS-4C-16 (“Bulletin”), which concerns financial reporting requirements for captive insurers. Pursuant to existing statute, each captive insurer domiciled in (or, for branch captives, licensed in) Connecticut must file an annual financial report with the Insurance Commissioner. The Bulletin announces that required annual financial statements must be certified by an independent accountant and include a statement of an opinion on loss and loss adjustment expense reserves. Audited financials are due five months following the end of a captive’s annual calendar or fiscal accounting period. The Bulletin also announces that each Risk Retention Group doing business as a Connecticut domiciled and Connecticut licensed company must submit an electronic copy of their financial statements to the NAIC, and also submit a paper copy of the financial statements, including certification and actuarial opinion statements, to the CID.