7 June 2023Analysis

Connecticut passes pro-captive legislation

Connecticut’s state legislature has passed new pro-captive legislative changes, with the last amendments coming at the end of the recent legislative session.

Fenhua Liu, deputy commissioner & director at the Captive Insurance Division of the Connecticut Insurance Department told Captive International that the state now allows:

  • captives to accept or transfer risks by means of a parametric contract 
  • protected cells of captives to establish and maintain separate accounts, and transfer risks through parametric product 
  • exempt dormant captives from paying minimum premium tax 

The relevant bill in the legislature is Senate Bill No. 1038, which passed the House and State Senate.