On May 9, 2018, SB 377, “An Act Authorizing Agency Captive Insurance Companies,” introduced by Connecticut Senators Larson and Kelly, was passed into law. SB 377 allows licensed insurance agents and producers to establish an agency captive insurance company to insure against risks covered by the policies they sell.
The testimony submitted in connection with SB 377, lead with praise for Connecticut General Assembly’s willingness to adapt its captive laws as necessary so Connecticut can continue to compete in the captive market. This law has been no exception as SB 377 was passed in only a few short months. This type of legislation will help continue to set Connecticut apart, as there are only three other states, including Vermont (the leader in the U.S. captive market), that currently have acts similar to SB 377.
The act is set to take effect on July 1, 2018.