HARTFORD — The state Senate passed legislation last week to modernize Connecticut’s laws regarding captive insurers.
“Captive insurance is a special form of liability insurance for companies and for nonprofits,” said state Sen. Joseph Crisco, Jr. (D-17), Senate Chair of the Insurance and Real Estate Committee, in a press release. “Even though we are the number one insurance state in the country, for a long time Connecticut was not involved in the captive insurance industry. In recent years it became apparent to our committee that we needed to dive in to this market. Captive insurance means more revenue for the state, an improved business climate and more jobs. It’s a win-win situation for everybody.”
A captive insurer is an insurance company or entity formed to insure or reinsure the risks of its owners, according to the release. These subsidiaries are formed specifically to protect and insure the assets of the parent company, group, or association. Connecticut law allows a captive to be licensed and domiciled in the state and to transact life insurance, annuity, health insurance and commercial risk insurance business.
Prior to Senate approval, Crisco and members of the Insurance and Real Estate Committee hosted an informational hearing on captive insurance.