Bill updating captive statutes headed to Connecticut governor

The Connecticut legislature has passed a bill that updates the state’s captive insurance statutes.

House Bill 6433, which passed the Senate Wednesday, and was sent to Gov. Ned Lamont for his review and signature, allows a captive insurer domiciled in Connecticut to convert into a protected cell with prior written approval from the insurance commissioner.

It also allows a sponsored captive insurer to sell, transfer, assign or otherwise convey a protected cell to a new or existing sponsored captive insurer, or one licensed as a special purpose financial insurer, with prior consent from the commissioner and certain relevant parties.

The legislation also allows the insurance commissioner to separate any insolvent protected cell from the sponsored captive insurer, and the insolvent protected cell to convert into a new protected cell or captive insurer.

This is the fifth consecutive year that the Connecticut Insurance Department and the Insurance Committee of the General Assembly have worked together to update the state’s captive insurance law.