On March 6, 2009, Insurance Commissioner Thomas R. Sullivan issued a press release inviting businesses wishing to form captive insurance companies in Connecticut to do so.As previously reported here, on June 2, 2008, Connecticut Governor M. Jodi Rell signed into law Senate Bill 281, titled “An Act Concerning Captive Insurance Companies” (the “Law”), following unanimous approval by the Connecticut House and Senate. The effective date of the Act was January 1, 2009.
The Law permits a captive insurance company to be licensed and domiciled in Connecticut and to transact life insurance, annuity, health insurance and commercial risk insurance business if it meets certain requirements. The Law provides for the licensure of pure, association and industrial captive insurance companies and risk retention groups but does not provide for special purpose or protected cell captive insurance companies. The captive insurance company’s board of directors or committee of managers, or, its subscribers’ advisory committee, in the case of a reciprocal insurer, must hold at least one meeting each year in Connecticut. The captive insurance company must also maintain its principal place of business in Connecticut.