CT SB00377

Allows formation of agency captive insurance companies as stock insurers, nonprofit corporations, or manager-managed limited liability companies, effective July 1, 2018.

Requires agency captive insurance company owners to be licensed insurance agents or producers in good standing in Connecticut and all other states where licensed.

Restricts agency captive insurance companies to insuring only commercial policies placed through their owner agents or producers and prohibits health insurance coverage.

Mandates written disclosure to policyholders of any limitations, rights, and obligations resulting from the captive company's affiliation with the agent or producer.

Requires all risks to be either fronted by an authorized insurer, reinsured by an approved reinsurer, or secured by a trust, irrevocable letter of credit, or other commissioner-approved arrangement; establishes minimum capital and surplus requirement of $500,000.