Page 610

House Bill No. 5506

Public Act No. 22-118 610 of 739

company agrees to provide reinsurance to the ceding insurer for risks associated with the ceding insurer's insurance or reinsurance business. [(27)] (28) "Risk retention group" means a captive insurance company organized under the laws of this state pursuant to the federal Liability Risk Retention Act of 1986, 15 USC 3901 et seq., as amended from time to time, as a stock insurer or mutual corporation, a reciprocal or other limited liability entity. [(28)] (29) "Security" has the same meaning as provided in section 36b-3 and includes any form of debt obligation, equity, surplus certificate, surplus note, funding agreement, derivative or other financial instrument that the commissioner designates as a security for purposes of [sections 38a-91aa] this section and sections 38a-91bb to 38a- 91tt, inclusive. [(29)] (30) "Special purpose financial captive insurance company" means a company that is licensed by the commissioner in accordance with section 38a-91bb. [(30)] (31) "Special purpose financial captive insurance company security" means a security issued by (A) a special purpose financial captive insurance company, or (B) a third party, the proceeds of which are obtained directly or indirectly by a special purpose financial captive insurance company. [(31)] (32) "Sponsor" means any association, corporation, limited liability company, partnership, trust or other entity that is approved by the commissioner to organize and operate a sponsored captive insurance company and to provide all or part of the required unimpaired paid-in capital and surplus. [(32)] (33) "Sponsored captive insurance company" means a captive insurance company: