HI HB881

Amends the definition of "affiliated entity" for pure captive insurance companies to allow entities that maintain a working relationship with the parent and insure similar or related risks, rather than requiring direct or indirect control by the parent.

Modifies the definition of "parent" to require control and power to direct management and policies through voting interests or securities, removing the specific threshold of owning more than 50 percent of outstanding voting interests.

Streamlines applicable insurance laws by specifying that risk retention captive insurance companies are subject to article 1, article 2, sections 431:3-302 to 431:3-304, section 431:3-307, article 4A, parts I and II of article 5, article 6, and article 15, plus chapter 431K.

Simplifies the rules for sponsored captive insurance companies by clarifying they are subject to their specific part with control reverting to that part in case of conflict with part I.

Takes effect upon approval.