SB 1133 — AN ACT CONCERNING FOREIGN BRANCH CAPTIVE INSURANCE COMPANIES.

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71991133 1 of 13 Raised Bill No.1133 (B) Only insures against risks covered by insurance policies sold, solicited or negotiated through the insurance agents or insurance producers that own or control such captive insurance company;

(6) "Branch business" means any insurance business transacted in LCO 7199 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0112 of 12 R01-SB.docx } Raised Bill No.

71991133 2 of 13 Raised Bill No.1133 this state by a branch captive insurance company.

(B) Who, (i) in the case of a pure captive insurance company, has an existing contractual relationship with a parent or one of the parent's LCO 7199 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0113 of 12 R01-SB.docx } Raised Bill No.

71991133 3 of 13 Raised Bill No.1133 affiliated companies, or (ii) in the case of an industrial insured captive insurance company, has an existing contractual relationship with an industrial insured or one of the industrial insured's affiliated companies;

LCO 7199 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0114 of 12 R01-SB.docx } Raised Bill No.

71991133 4 of 13 Raised Bill No.1133 [(16)] (17) "Industrial insured captive insurance company" means any company that insures risks of the industrial insureds that comprise an industrial insured group, and includes a company that also insures risks of such industrial insureds' affiliated companies.

"Insurance securitization" or "securitization" does not include the issuance of a LCO 7199 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-011335 of 12 R01-SB.docx } Raised Bill No.

71991133 5 of 13 Raised Bill No.1133 securitization" or "securitization" does not include the issuance of a letter of credit for the benefit of the commissioner to satisfy all or part of a special purpose financial captive insurance company's capital and surplus requirements under section 38a-91dd.

[(24)] (25) "Protected cell" means a separate account established by a sponsored captive insurance company, in which assets are maintained LCO 7199 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0116 of 12 R01-SB.docx } Raised Bill No.

71991133 6 of 13 Raised Bill No.1133 sponsored captive insurance company, in which assets are maintained for one or more participants in accordance with the terms of one or more participant contracts to fund the liability of the sponsored captive insurance company assumed on behalf of such participants as set forth in such participant contracts.

[(30)] (31) "Special purpose financial captive insurance company security" means a security issued by (A) a special purpose financial captive insurance company, or (B) a third party, the proceeds of which are obtained directly or indirectly by a special purpose financial LCOcaptive No.insurance company.

LCO 7199 7{\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0117 of 1312 R01-SB.docx } Raised Bill No.1133No. captive insurance company.

1133 [(31)] (32) "Sponsor" means any association, corporation, limited liability company, partnership, trust or other entity that is approved by the commissioner to organize and operate a sponsored captive insurance company and to provide all or part of the required unimpaired paid-in capital and surplus.

(b) There is established a tax amnesty program for any insured that procures, continues or renews independently procured insurance, where this state is an insured's home state, that is liable for the tax imposed under section 38a-277 of the general statutes for any taxable LCO 7199 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0118 of 12 R01-SB.docx } Raised Bill No.

71991133 8 of 13 Raised Bill No.1133 where this state is an insured's home state, that is liable for the tax imposed under section 38a-277 of the general statutes for any taxable period ending prior to July 1, 2019, and has failed to pay such tax within the time stated in section 38a-277 of the general statutes.

After such insurer demonstrates, to the satisfaction of the commissioner, that, upon becoming a domestic insurer, such insurer will be in compliance with all requirements of law and its business will be consistent with the interests of prospective insureds and the public, the commissioner may, in accordance with section 38a-41, issue a new license to such insurer to reflect the change in such insurer's LCO 7199 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0119 of 12 R01-SB.docx } Raised Bill No.

71991133 9 of 13 Raised Bill No.1133 be consistent with the interests of prospective insureds and the public, the commissioner may, in accordance with section 38a-41, issue a new license to such insurer to reflect the change in such insurer's domiciliary state and such insurer shall be subject to the authority and jurisdiction of this state.

All outstanding policies of any transferring insurer shall be given full force and effect and need not be endorsed as to the new name of the company or its new location unless ordered by LCOthe No.Insurance Commissioner.

7199Each 10transferring ofinsurer 13shall Raisedfile Billnew No.1133policy forms with the Insurance Commissioner.Commissioner on or before the effective date of the transfer, but may use existing policy forms with appropriate endorsements if allowed by, and under such conditions as LCO 7199 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0110 of 12 R01-SB.docx } Raised Bill No.

Each1133 transferring insurer shall file new policy forms with the Insurance Commissioner on or before the effective date of the transfer, but may use existing policy forms with appropriate endorsements if allowed by, and under such conditions as approved by, the Insurance Commissioner.

(h) In the case of a captive insurance company licensed as a branch captive insurance company, the alien captive insurance company or foreign captive insurance company, as applicable, shall petition the commissioner to issue a certificate setting forth the commissioner's finding that, after considering the character, reputation, financial responsibility, insurance experience, and business qualifications of the LCOofficers No.and directors of [the alien] such captive insurance company, the licensing and maintenance of the branch operations will promote the general good of the state.

7199 11 of 13 Raised Bill No.1133 officers and directors of [the alien] such captive insurance company, the licensing and maintenance of the branch operations will promote the general good of the state.

Sec.LCO 7199 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0111 of 12 R01-SB.docx } Raised Bill No.

1133 Sec.

Section 1 July 1, 2019 38a-91aa LCOSec. No.

71992 12July of1, 132019 RaisedNew Billsection No.Sec.

1133 July 1, 2019 Sec.

2 New section Sec.

6 July 1, 2019 38a-91gg(b)(1)(B) July 1, 2019 Sec.

7 July38a-91ss(g)(2)(A) 1,LCO 20197199 38a-91ss(g)(2)(A){\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0113312 Statement of Purpose:12 R01-SB.docx } Raised Bill No.

To1133 authorizeFIN foreignJoint branchFavorable captiveLCO insurance7199 companies{\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-01133- and13 establishof a13 taxR01-SB.docx amnesty} program for any foreign captive insurance company that establishes a foreign branch captive insurance company in this state or transfers its domicile to this state.

[Proposed deletions are enclosed in brackets.

Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.] LCO No.

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