Bill Text: CT SB00878 | 2017 | General Assembly | Comm Sub

Connecticut Senate Bill 878 (Prior Session Legislation)

Bill Title: An Act Increasing A Tax Incentive For Captive Insurance Companies, Promoting The Captive Insurance Industry And Requiring The Insurance Commissioner To Study Microcaptive Insurers.

Spectrum: Committee Bill

Status: (Introduced - Dead) 2017-05-03 - Referred by Senate to Committee on Appropriations [SB00878 Detail]

Download: Connecticut-2017-SB00878-Comm_Sub.html


General Assembly		*Raised Bill No. 878*
*January Session, 2017*		LCO No. 4251
		_____SB00878INS___031017____
Referred to Committee on INSURANCE AND REAL ESTATE
Introduced by:
(INS)

AN ACT INCREASING A TAX INCENTIVE FOR CAPTIVE INSURANCE COMPANIES, PROMOTING THE CAPTIVE INSURANCE INDUSTRY AND REQUIRING THE INSURANCE COMMISSIONER TO STUDY MICROCAPTIVE INSURERS.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Subdivision (3) of subsection (g) of section 38a-91nn of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2018, and applicable to calendar years commencing on or after said date):

(3) A captive insurance company may claim a nonrefundable tax credit of [seven thousand five hundred] up to fifteen thousand five hundred dollars against the aggregate tax imposed under this section for the first calendar year [on or after January 1, 2012,] in which the company has tax liability under this section, provided such credit shall not reduce the tax under this section to less than zero. The Commissioner of Revenue Services shall prescribe the form and manner in which such tax credit may be claimed.

Sec. 2. Subdivision (2) of subsection (h) of section 38a-91nn of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):

(2) The Comptroller [may] shall transfer from the Insurance Department's available appropriation [, with the approval of the Secretary of the Office of Policy and Management,] an amount equivalent to [not more than] two per cent of the tax collected pursuant to this section, to the Department of Economic and Community Development for reasonable expenses incurred to promote the captive insurance industry in this state. The Department of Economic and Community Development, [may] in collaboration with the Insurance Department and the Connecticut Captive Insurance Association, shall also utilize the transferred moneys to collaborate with other entities to promote the captive insurance industry in this state.

Sec. 3. (NEW) (Effective from passage) (a) The Insurance Commissioner shall study the operations of microcaptive insurers in this state. For purposes of this section, "microcaptive insurer" means an insurance company licensed to do business in this state that is eligible to pay the alternative tax under 26 USC 831(b), as amended from time to time.

(b) The study conducted under subsection (a) of this section shall include, but need not be limited to, an examination of methods to ensure that microcaptive insurers have sufficient capital to operate and provide services to small businesses in this state.

(c) Not later than January 1, 2018, the commissioner, in accordance with the provisions of section 11-4a of the general statutes, shall report the results of the study conducted under subsections (a) and (b) of this section to the joint standing committee of the General Assembly having cognizance of matters relating to insurance. Such report shall include the commissioner's recommendations regarding restrictions on the operations of microcaptive insurers in this state.


This act shall take effect as follows and shall amend the following sections:
Section 1	January 1, 2018, and applicable to calendar years commencing on or after said date	38a-91nn(g)(3)
Sec. 2	July 1, 2017	38a-91nn(h)(2)
Sec. 3	from passage	New section