Page 611

House Bill No. 5506

Public Act No. 22-118 611 of 739

(A) In which the minimum required unimpaired paid-in capital and surplus are provided by one or more sponsors; (B) That insures risks of its participants only through separate participant contracts; and (C) That funds its liability to each participant through one or more protected cells and segregates the assets of each protected cell from the assets of other protected cells and from the assets of the sponsored captive insurance company's general account. [(33)] (34) "Surplus note" means an unsecured subordinated debt obligation possessing characteristics consistent with the National Association of Insurance Commissioners Statement of Statutory Accounting Principles No. 41, as amended from time to time, and as modified or supplemented by the commissioner. Sec. 438. (Effective July 1, 2022) (a) As used in this section, "alien captive insurance company", "branch captive insurance company" and "foreign captive insurance company" have the same meanings as provided in section 38a-91aa of the general statutes. (b) The Commissioner of Revenue Services shall waive any and all penalties that would otherwise be due under section 38a-277 of the general statutes for any taxable period beginning on or after July 1, 2019, and ending prior to July 1, 2022, if, not later than June 30, 2023, the insured: (1) Establishes a branch captive insurance company in this state or transfers the domicile of its alien captive insurance company or foreign captive insurance company to this state in accordance with the provisions of section 38a-58a of the general statutes; and (2) Pays all taxes and interest due and outstanding under section 38a- 277 of the general statutes for all taxable periods ending on or after July