Summary of HB 267 - Captive Insurance Amendments

• Adds "special purpose captive insurance company" as a new category of captive insurer that may be designated by the Commissioner for risks approved on a case-by-case basis.

• Allows captive insurance companies to deposit capital and surplus in forms including cash, securities approved by the Commissioner, clean irrevocable letters of credit, or other forms approved by the Commissioner.

• Modifies audit and financial reporting requirements by streamlining the annual audited financial report format and allowing extensions for filing periods when good cause is demonstrated.

• Clarifies that risk retention groups are subject to separate examination and audit requirements under Articles 6 and 7 of the insurance code rather than captive-specific requirements.

• Becomes effective July 1, 2014.