On June 23, 2023, the Connecticut Insurance Department (the “Department”) issued a press release announcing Governor Ted Lamont signed Public Act No. 23-15, An Act Concerning Captive Insurance Companies, (the “Act”) into law. Effective October 1, 2023, the Act makes various changes to Connecticut’s captive insurance laws. In particular, the Act now permits captive insurance companies to “accept or transfer risk by means of a parametric contract,” which will allow businesses to more easily cover unique risks, according to the Department.
The Act also amends Conn. Gen. Stat. § 38a-91rr by allowing a protected cell of a sponsored captive insurance company to establish one or more separate accounts. The Department said this will allow businesses to more effectively address their specific insurance needs. Finally, the Act provides additional benefits for dormant captive insurance companies. In particular, a dormant captive insurance company will not be subject to or liable for the payment of Connecticut’s minimum premium tax.