Bill
HB 6433
Overview: HB 6433, "An Act Concerning Captive Insurance", was signed into law by the Governor. It was introduced on January 23, 2025.Purpose and Intent: The bill aims to update and
Overview: HB 6433, "An Act Concerning Captive Insurance", was signed into law by the Governor. It was introduced on January 23, 2025.
Purpose and Intent: The bill aims to update and modernize the state's regulatory framework for captive insurance companies, which are subsidiaries that large corporations use to self-insure certain risks.
Key Provisions:
- Increases the minimum capital and surplus requirements for captive insurers to align with national standards.
- Expands the types of risks that captive insurers are permitted to underwrite, including cyber liability and employee benefits.
- Streamlines the application and approval process for establishing new captive insurance companies in the state.
- Authorizes the state insurance department to collect additional fees and assessments from captive insurers to support regulatory oversight.
Affected Parties and Impacts: The bill will benefit large corporations and businesses that utilize captive insurance as a risk management tool, providing them with more flexibility and options. It may also attract additional captive insurers to establish operations in the state, generating new economic activity and tax revenue.
Procedural and Timeline Considerations: The bill was signed into law and will take effect on July 1, 2025. The state insurance department will need to update its regulations and application procedures over the next several months to implement the new requirements.
Compiled from official sources — confirm details with the bill’s official record.
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