Public Act No. 08-127 was passed by the Connecticut Legislature in 2008 allowing captive insurance companies to be licensed and domiciled in Connecticut after January 1, 2009.  The Act defines captive insurance companies and details the requirements for domiciling in Connecticut.  Captives are an alternate type of self insurance vehicle that affords businesses some flexibility with their risk management strategies.  There are different types of captives depending on the best strategy for a business or organization.  Further details about the types of captives allowed in Connecticut can be found in the law.

 

Before submitting an application to the Connecticut Insurance Department (the Department), an initial meeting should be arranged with the Department to discuss the proposed captive entity and to obtain information about the formation and licensing process.  The purpose of this meeting is to discuss the proposed captive and its business purpose and obtain an initial reaction to the licensing proposal from the Department.  An executive summary detailing the plan of operation for the captive should be provided to the Department at least three business days prior to the meeting.

 

The meeting for the potential applicant should be arranged by emailing Maura Welch, Insurance Certified Supervising Examiner at maura.welch@ct.gov or calling her at (860) 297-3827.

 

If the Department accepts the proposed plan of operation, the captive must be formed and be incorporated in Connecticut.  Once the entity is incorporated the licensing process can begin.

 

 

The Department requires the submission of an application and proposed business plan in full.  A copy of the application form is provided on our website at www.ct.gov/cid/captive_application.  An original and one copy of the application and supporting documentation must be submitted to the Department along with a non-refundable application fee of $800.  All applications will be reviewed by an outside review firm appointed by the Commissioner.  The reasonable cost of processing the application will be charged against the applicant.  The review firm’s duties are of an advisory nature only and final approval or disapproval of the application will be at the sole discretion of the Commissioner.  It is expected that the review will be completed within 30 days following receipt of a complete application.