SB 908 Summary

• Authorizes foreign branch captive insurance companies, which are alien captive insurance companies licensed to transact foreign branch business in Connecticut through a business unit with a principal place of business in the state, and prohibits them from otherwise being licensed to conduct general insurance business in Connecticut.

• Requires foreign branch captive insurance companies to maintain at least $250,000 in security for liabilities attributable to foreign branch operations, plus reserves for issued insurance policies and reinsurance contracts, with amounts holdable as trusts, letters of credit, or combinations thereof.

• Mandates that foreign branch captive insurance companies submit annual reports and statements filed in their domiciliary jurisdiction to the Insurance Commissioner on the same day as filed with their home jurisdiction, or submit alternative reports if the commissioner determines home jurisdiction filings are inadequate.

• Limits examinations of foreign branch captive insurance companies to foreign branch business and operations only, provided they submit annual certificates of compliance from their domiciliary jurisdiction showing sound financial condition and regulatory compliance.

• Applies annual aggregate insurance taxes to foreign branch captive insurance companies only on their foreign branch business, with minimum tax of $7,500 and maximum tax of $200,000.