CT HB06433

Connecticut-domiciled captive insurance companies (agency, association, industrial insured, pure, risk retention group, or special purpose financial) may convert into protected cells with prior written approval from the Insurance Commissioner, effective October 1, 2025.

Conversions preserve all assets, rights, benefits, obligations, and liabilities without triggering transfers, assignments, or reversionary interests.

Sponsored captive insurance companies may sell, transfer, or convey protected cells to new or existing sponsored captive companies with participant consent, sponsor application, and commissioner approval.

Protected cell assets remain segregated during insolvency proceedings, and creditors of one protected cell have no recourse against assets of other cells or the company's general account.

In cases of sponsored captive insolvency where protected cells remain solvent, the commissioner may separate those cells and convert them into new protected cells or standalone captive insurance companies.