Mr. Robson questioned keeping a program that is so underutilized. Vice Chairman Poelstra moved that H.B. 2045 do pass. He explained that captive insurance is a form of self-insurance. Captive insurance companies are established to serve specific needs within corporations. A typical captive is owned or controlled by a single parent or group of companies that are not primarily engaged in the business of insurance.
Captives function as risk-bearing entities related in some way to the risks of the shareholders.
Mr. Robson asked whether there is an appropriation involved. He queried whether the Department has the authority to charge the fees. Mr. Dinesman related that there is an appropriation to allow for the start of the program. As in other types of insurance, the Department would then recapture the fees. Mr. May questioned the delayed effective date.