CT HB05374

Repeals and replaces Section 38a-91aa of Connecticut general statutes, effective July 1, 2020, to establish comprehensive definitions for captive insurance companies and related entities.

Defines 33 key terms related to captive insurance operations, including pure captive, agency captive, association captive, industrial insured captive, branch captive, and special purpose financial captive insurance companies.

Creates a new tax exemption under Section 38a-277 for towns, cities, boroughs, regional school districts, boards of education, and regional educational service centers in Connecticut, as well as associations comprised solely of these entities.

Exempts qualifying public entities and their associations from all insurance premium taxes, interest, and penalties when insured through an association captive insurance company, retroactive to July 1, 2016.