The state of Connecticut’s insurance department has updated its existing captive statutes by making changes to Senate Bill 188.
These changes now mean that clarification has been made of the definition of private passenger motor vehicle insurance that can be provided by a captive insurance company.
The provisions and process for captives wishing to transfer domicile (re-domesticate) to or from Connecticut is now also covered by SB 188.
Should captives wish to re-domicile, the SB 188 updates have laid out the discretionary authority for evaluating credit for existing reinsurance placements.
The new SB 188 will also clarify the establishment and purpose of a branch captive insurance company, and the applicability of holding company legislation to captive insurance companies.
The bill will offer additional options for companies looking to redomesticate to the state or start a branch captive in Connecticut, and will also give the state insurance department flexibility in determining reinsurance credits for companies that redomesticate to the state.
Thomas Hodson, who leads JLT Towner Insurance Management, comments: “For over 200 years, Connecticut has been an innovator in insurance, so these updates are a natural extension of that innovation.”
Connecticut, SB188, captives