Connecticut 2012 Regular Session

Connecticut House Bill HB05107

Introduced
2/16/12  
Refer
2/16/12  
Report Pass
3/1/12  
Report Pass
3/1/12  
Report Pass
3/13/12  
Report Pass
3/13/12  
Refer
3/19/12  
Refer
3/19/12  
Report Pass
3/26/12  
Report Pass
3/26/12  
Refer
4/10/12  
Refer
4/10/12  
Report Pass
4/16/12  
Report Pass
4/16/12  
Engrossed
4/19/12  
Engrossed
4/19/12  
Report Pass
4/23/12  

Caption

An Act Concerning Captive Insurance Companies.

Impact

If enacted, HB 05107 would have an immediate effect on state laws governing captive insurance companies by revising existing tax rates and implementing a framework to promote regulatory oversight. The new tax structure includes lower rates for direct premiums and provides annual minimum and maximum thresholds, which could reduce the financial burden on businesses utilizing captive insurance. This regulation aims to encourage more companies to establish captive insurance operations in Connecticut, potentially bolstering local economic development and attracting new business investments.

Summary

House Bill 05107, titled 'An Act Concerning Captive Insurance Companies,' proposes significant adjustments to the taxation and regulation of captive insurance firms in Connecticut. The bill seeks to establish clearer guidelines and tax structures for captive insurance companies, aiming to enhance the attractiveness of Connecticut as a domicile for these entities. By modifying the tax rates and introducing a minimum and maximum tax structure, the bill intends to streamline the financial responsibilities of these companies, potentially increasing their operational efficiency.

Sentiment

The response to the bill within the legislature was generally positive, with many members recognizing the potential benefits for the insurance industry and the state economy. Proponents argued that the changes would create a conducive environment for the captive insurance market, stimulating growth and expanding job opportunities in related sectors. However, some concerns were raised regarding the adequacy of regulatory oversight and whether the reduced taxes would appropriately align with the broader objectives of financial stability and consumer protection in the insurance market.

Contention

Discussions around HB 05107 highlighted a few key points of contention, specifically related to the balance between regulatory support and financial incentives for businesses. Critics voiced concerns that lowering taxes might undermine the state’s revenue capacity from the insurance sector. Additionally, some stakeholders questioned whether the bill sufficiently addressed potential risks associated with lenient regulatory practices, advocating for robust oversight measures to ensure that captive insurance companies operate in a manner that protects consumers effectively.

Companion Bills

No companion bills found.

Previously Filed As

CT HB05503

An Act Concerning Insurance Market Conduct And Insurance Licensing, The Insurance Department's Technical Corrections And Other Revisions To The Insurance Statutes And Captive Insurance.

CT SB00321

An Act Concerning Captive Insurance And The Conversion Of Protected Cells.

CT SB00372

An Act Concerning A Working Group To Study Payments By Insurance Companies For Deposit Into The Insurance Fund.

CT SB00400

An Act Concerning The Insurance Department's Technical Corrections And Other Revisions To The Insurance Statutes.

CT HB05250

An Act Concerning Self-service Storage Insurance.

CT HB05209

An Act Concerning Long-term Care Insurance Premium Rates.

CT SB00398

An Act Concerning The Regulation And Taxation Of Travel Insurance And Associated Entities, Products And Professionals.

CT HB05470

An Act Concerning Transportation Network Companies And Third-party Delivery Companies.

CT HB05300

An Act Concerning The Invest Ct Fund Program.

CT HB05512

An Act Concerning A Study Of State Revenue Collections.

Similar Bills

No similar bills found.