Captive Insurance Regulation
The third annual Connecticut Captive Insurance Association symposium on September 17 at the Stamford Sheraton offered participants educational and informative workshops on a variety of topics including health care costs, corporate governance, strategic risk management and captive regulation. The day-long event also gave participants a chance to meet captive regulatory staff from the Insurance Department and representatives from the Department of Economic Development.
Still Revolutionary: The State of Captive Insurers
Connecticut is taking a unique approach to the captive market – different from other US and non-US domiciles. As the “insurance capital” in the US, the Captive Division of the State of Connecticut Insurance Department is working beyond a pure regulatory regime, and focusing on enabling captive owners to create a sustainable risk financing vehicle as a captive insurance subsidiary. The objective is to attract captives to the state, which form part of the owner’s strategic initiatives and finance structure. (Read more....)
DEFINITIONS: A captive insurance company is wholly owned and controlled by a parent company or association, and operates to insure the parent’s own risks. In Connecticut, a captive is defined as any pure captive insurance company, association captive insurance company, industrial insured captive insurance company, risk retention group, sponsored captive insurance company, or special purpose financial captive insurance company that is domiciled in the state and formed or licensed under the provisions of the Connecticut Insurance Statues and Regulations.
CAPTIVE INSURANCE DIVISION:
The Captive Insurance Division evaluates licenses, regulates and examines the captive insurers and risk retention groups in the alternative risk market for the State of Connecticut. The alternative risk insurance market refers to a number of risk funding techniques, such as self-insurance, paid loss plans, insurance purchasing groups, and risk retention groups that are outside the scope of that provided by most traditional Property & Casualty or Life & Health insurers. Read more on the Captive Insurance Division
THE LICENSING & APPROVAL PROCESS
Applications for Recognition:
- $800 application fee
- $375 annual license fee
- License Renewal and fee due on or before April 1 of each year;
- Premium Tax Filing and Payment due on or before March 1 of each year for Direct premium taxes and March 31 for Assumed premium taxes;
- Annual Report due dates – please see Bulletin No. FS-4C-13 linked below;
- Audited financial statements:
- December 31 Year End – June 1.
- Fiscal Year End – 150 days after fiscal year end.
Content Last Modified on 1/14/2015 4:01:54 PM