Sec. 38a-91bb. Captive insurance companies. Licenses. Fees.
Sec. 38a-91bb. Captive insurance companies. Licenses. Fees. (a) Any captive
insurance company, when permitted by its articles of association, charter or other organizational document, may apply to the Insurance Commissioner for a license to do the
business of life insurance, annuities, health insurance, as defined in section 38a-469,
and commercial risk insurance, as defined in section 38a-663, provided:
(1) No pure captive insurance company may insure any risks other than those of its
parent and affiliated companies or controlled unaffiliated business;
(2) No association captive insurance company may insure any risks other than those
of the member organizations of its association, and their affiliated companies;
(3) No industrial insured captive insurance company may insure any risks other
than those of the industrial insureds that comprise the industrial insured group, and their
affiliated companies;
(4) No risk retention group may insure any risks other than those of its members
and owners;
(5) No captive insurance company may provide private passenger motor vehicle or
homeowner's insurance coverage or any component thereof;
(6) No captive insurance company may accept or cede reinsurance except as provided in section 38a-91kk;
(7) Any captive insurance company that provides life insurance, annuities or health
insurance shall comply with all applicable state and federal laws.
(b) No captive insurance company shall do any insurance business in this state
unless:
(1) It first obtains from the Insurance Commissioner a license authorizing it to do
insurance business in this state;
(2) Its board of directors or committee of managers or, in the case of a reciprocal
insurer, its subscribers' advisory committee holds at least one meeting each year in
this state;
(3) It maintains its principal place of business in this state; and
(4) It appoints a registered agent to accept service of process and to otherwise act
on its behalf in this state. Whenever such registered agent cannot with reasonable diligence be found at the registered office of the captive insurance company, the Insurance
Commissioner shall be an agent of such captive insurance company upon whom any
process, notice or demand may be served.
(c) (1) To be considered for a license, a captive insurance company shall:
(A) File with the commissioner a certified copy of its organizational documents, a
statement under oath of its president and secretary showing its financial condition, and
any other statements or documents required by the commissioner; and
(B) Submit to the commissioner for approval a description of the coverages, deductibles, coverage limits and rates and such additional information as the commissioner
may require. In the event of any subsequent material change in any item in such description, the captive insurance company shall submit to the commissioner for approval an
appropriate revision and shall not offer any additional kinds of insurance until a revision
of such description is approved by the commissioner. The captive insurance company
shall inform the commissioner of any material change in rates not later than thirty days
after the adoption of such change.
(2) Each applicant captive insurance company shall also file with the commissioner
evidence of the following:
(A) The amount and liquidity of the company's assets relative to the risks to be
assumed;
(B) The adequacy of the expertise, experience and character of the persons who
will manage the company;
(C) The overall soundness of the company's plan of operation;
(D) The adequacy of the loss prevention programs of the company's insureds; and
(E) Such other factors deemed relevant by the commissioner in ascertaining whether
the proposed captive insurance company will be able to meet its policy obligations.
(3) Information submitted pursuant to this subsection shall be and shall remain
confidential and shall not be made public by the commissioner or an employee or agent
of the commissioner without the written consent of the company, except that:
(A) Such information may be discoverable by a party in a civil action or contested
case to which the captive insurance company that submitted such information is a party
upon a showing by the party seeking to discover such information that:
(i) The information sought is relevant to and necessary for the furtherance of such
action or case;
(ii) The information sought is unavailable from other nonconfidential sources; and
(iii) A subpoena issued by a judicial or administrative officer of competent jurisdiction has been submitted to the commissioner, provided such submission requirement
shall not apply to a risk retention group; and
(B) The commissioner may, in the commissioner's discretion, disclose such information to a public official having jurisdiction over the regulation of insurance in another
state, provided:
(i) Such public official agrees, in writing, to maintain the confidentiality of such
information; and
(ii) The laws of the state in which such public official serves require such information to be and to remain confidential.
(d) (1) Each captive insurance company shall pay to the commissioner a nonrefundable fee of eight hundred dollars for examining, investigating and processing its application for license, and the commissioner may retain legal, financial and examination services from outside the department, the reasonable cost of which may be charged against
the applicant. The provisions of subdivisions (2) to (5), inclusive, of subsection (k) of
section 38a-14 shall apply to examinations, investigations and processing conducted
under this section.
(2) Each captive insurance company shall pay a license fee for the first year of
licensure and a renewal fee for each year thereafter as set forth in section 38a-11.
(e) If the commissioner finds that the documents and statements that a captive insurance company has filed comply with the provisions of sections 38a-91aa to 38a-91qq,
inclusive, the commissioner may grant a license authorizing the company to do insurance
business in this state until April first thereafter. The captive insurance company may
apply to renew such license on such forms as the commissioner prescribes.
(P.A. 08-127, S. 2.)
History: P.A. 08-127 effective January 1, 2009.