CT HB05107

Establishes tiered tax rates for captive insurance companies on direct premiums collected, ranging from 0.38% on the first $20 million to 0.072% on amounts exceeding $60 million, effective for calendar years starting January 1, 2012.

Imposes separate tiered tax rates on assumed reinsurance premiums ranging from 0.214% to 0.024%, with exemptions for certain transactions involving assumption of loss reserves under common ownership.

Sets annual minimum tax of $7,500 and maximum tax of $200,000 for non-sponsored captive insurance companies; sponsored captive companies have $7,500 minimum but no cap on maximum tax.

Allows a nonrefundable $7,500 tax credit for the first calendar year a captive insurance company has tax liability under this section.

Directs 11% of collected taxes to the Insurance Fund and allows up to 2% transfer to the Department of Economic and Community Development for industry promotion; consolidates a separate captive insurance regulatory account into the existing Insurance Fund.