HB 7183 Summary

• Creates "dormant captive insurance company" status allowing inactive pure, sponsored, or industrial insured captive companies to maintain a certificate of dormancy with $25,000 minimum capital and biennial renewal requirements.

• Reduces minimum capital requirement for sponsored captive insurance companies from $500,000 to $225,000, while giving Insurance Commissioner discretion to require less capital based on business type and volume.

• Establishes comprehensive short-term care insurance policy framework effective October 1, 2017, requiring disclosure that policies do not provide long-term care coverage, limiting benefits to 300 days, and mandating rate filing and approval procedures.

• Expands protections for sponsored captive insurance company protected cells, clarifying that assets and liabilities remain segregated during insolvency proceedings and prohibiting commingling of protected cell assets with other cells or general accounts.

• Increases preferred provider network minimum net worth from $250,000 to $500,000 and extends financial security reserve requirements from two months to four months of average provider payments.