CT SB00321

Amends Connecticut captive insurance statutes effective October 1, 2024, to add definitions and provisions for converting protected cells within sponsored captive insurance companies.

Allows sponsored captive insurance companies to convert one or more protected cells or incorporated protected cells into a single protected cell, new sponsored captive company, new pure captive company, new risk retention group, or other new captive insurance entity with prior written approval from the Insurance Commissioner.

Conversion is treated as a continuation of the protected cell's existence with all assets, rights, benefits, obligations, and liabilities transferring without requiring any formal transfer or assignment and without creating any reversionary interest or impairment.

Converted protected cells must comply with applicable captive insurance statutes and the company's commissioner-approved plan of operation, and conversions to incorporated protected cells or new entities must follow Connecticut's formation requirements under chapters 601 or 613.

Conversion preserves all rights and protections that existed prior to the conversion date for the converted cell and the sponsoring or resulting captive insurance company.