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House Bill No. 5506

Public Act No. 22-118 629 of 739

by law, nevertheless render its operation detrimental or its condition unsound with respect to the public or to its policyholders; or (G) failure otherwise to comply with the laws of this state. Sec. 445. Subsection (a) of section 38a-91kk of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2022): (a) Any captive insurance company may assume reinsurance from any other insurer. [only on risks that such company is authorized to write directly.] Sec. 446. Section 38a-91qq of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2022): The [Insurance Commissioner] commissioner may adopt regulations, in accordance with chapter 54, as are necessary to carry out the provisions of sections 38a-91aa to [38a-91tt] 38a-91uu, inclusive, and sections 38a-91ww and 38a-91xx and to establish standards to ensure that a parent or affiliated company is able to exercise control of the risk management function of any controlled unaffiliated business to be insured by a pure captive insurance company, an industrial insured captive insurance company or a sponsored captive insurance company, except that until such regulations are approved, the commissioner may approve the coverage of such risks by a pure captive insurance company, an industrial insured captive insurance company or a sponsored captive insurance company. Sec. 447. Subparagraph (A) of subdivision (2) of subsection (g) of section 38a-91ss of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2022): (A) Proceeds from a special purpose financial captive insurance company securitization or letters of credit or other assets described in subdivision [(18)] (19) of section 38a-91aa;