HB2394 Summary

• Creates a new "dormant captive insurance company" category allowing captive insurers to obtain a certificate of dormancy, with automatic placement of their certificate of authority into inactive status; dormant companies must maintain at least $25,000 in capital and surplus and pay a $300 renewal fee every five years.

• Exempts dormant captive insurance companies from conducting insurance business, paying certain taxes under section 431:19-116, filing audited annual financial statements, and undergoing examination except for non-compliance with dormancy provisions.

• Expands the definition of "trade name" to include names under which individuals or business entities are conducting or doing business as, and requires licensees to register trade names with the department of commerce and consumer affairs before use.

• Increases surety bond requirements for third party administrators from $100,000 initially to $300,000 for all licensing renewals, and separates audited financial statement filing requirements to be due by June 1 annually rather than with the annual report.

• Clarifies reinsurance intermediary-manager requirements by establishing specific bond and errors and omissions insurance provisions in the reinsurer's duties section, and amends definitions of "controlled unaffiliated business" and "participant" to include sponsored captive insurance companies and their participants.