Connecticut General Statutes/Title 38a/Chapter 698/Section 38a-91uu

CGS § 38a-91uu. Dormant captive insurance company. Certificate of dormancy. Capital and surplus.

(a) For the purposes of this section, unless the context otherwise requires:

(1) “Dormant captive insurance company” means a pure captive insurance company, a sponsored captive insurance company or an industrial insured captive insurance company, each as defined in section 38a-91aa, that has:

(A) Ceased transacting insurance business; and

(B) No liabilities associated with any insurance business that occurred, or insurance policy that was issued, prior to, on or after the filing of its application for a certificate of dormancy under subsection (b) of this section; and

(2) “Insurance business” means the business of insurance, as defined in section 38a-905.

(b) A dormant captive insurance company that is domiciled in this state may apply to the Insurance Commissioner for a certificate of dormancy. The certificate of dormancy shall be subject to renewal once every five years, and shall be forfeited if the dormant captive insurance company commences transacting insurance business or fails to timely renew such certificate.

(1) Possess and maintain unimpaired, paid-in capital and surplus of not less than fifteen thousand dollars, provided such dormant captive insurance company shall not be required to add capital upon entering dormancy if such dormant captive insurance company was never capitalized;

(2) Not later than March fifteenth, annually, submit to the commissioner a report on the financial condition of such company, verified by oath of two executive officers of such company, in such form as the commissioner prescribes; and

(3) Pay the license renewal fee specified in section 38a-11 for a captive insurance company.

(d) A dormant captive insurance company shall not be subject to or liable for the payment of any tax under section 38a-91nn.

Short History

(P.A. 17-198, S. 1; P.A. 22-118, S. 448; P.A. 23-15, S. 3.)

Long History

History: P.A. 17-198 effective July 1, 2017; P.A. 22-118 amended Subsec. (b) by replacing “two years” with “five years” and amended Subsec. (c) by replacing $25,000 with $15,000 and adding proviso re addition of capital if dormant captive insurance company was never capitalized in Subdiv. (1), and replacing “March 15, 2018” with “March fifteenth” in Subdiv. (2), effective July 1, 2022; P.A. 23-15 added Subsec. (d) re exempt from any tax under Sec. 38a-91nn.

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