Title: Captive Insurers Clarification Act
Policy area: Finance and Financial Sector

Summary:
Captive Insurers Clarification Act
This bill specifies that captive insurance companies are not nonadmitted insurers under the Nonadmitted and Reinsurance Reform Act of 2010, which provides that nonadmitted insurers are regulated by the insured's home state.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7133 Introduced in House (IH)]

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115th CONGRESS
  2d Session
                                H. R. 7133

To clarify the definition of nonadmitted insurer under the Nonadmitted 
      and Reinsurance Reform Act of 2010, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 14, 2018

  Mr. Welch introduced the following bill; which was referred to the 
 Committee on Financial Services, and in addition to the Committee on 
   the Judiciary, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
To clarify the definition of nonadmitted insurer under the Nonadmitted 
      and Reinsurance Reform Act of 2010, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Captive Insurers Clarification 
Act''.

SEC. 2. CAPTIVE INSURERS.

    (a) Definitions.--Section 527 of the Nonadmitted and Reinsurance 
Reform Act of 2010 (15 U.S.C. 8206) is amended--
            (1) by redesignating paragraphs (4) through (16) as 
        paragraphs (5) through (17), respectively;
            (2) by inserting after paragraph (3) the following:
            ``(4) Captive insurance company.--The term `captive 
        insurance company' includes any insurance company--
                    ``(A) that is wholly owned, directly or indirectly, 
                by a single parent company, and whose primary purpose 
                is to provide insurance to cover the risks of such 
                single parent company or any affiliates of such single 
                parent company;
                    ``(B) that is wholly owned, directly or indirectly, 
                by a group of companies, and whose primary purpose is 
                to provide insurance to cover the risks of such group 
                of companies or any affiliates of such group of 
                companies; and
                    ``(C) that is wholly owned, directly or indirectly, 
                by an industry, trade, or service group or association, 
                and whose primary purpose is to provide insurance to 
                cover the risks to any member in such group or 
                association or any affiliate of such member.''; and
            (3) in paragraph (12)(B), as so redesignated--
                    (A) by striking ``(B) does not include a risk 
                retention group'' and inserting the following:
                    ``(B) does not include--
                            ``(i) a risk retention group'';
                    (B) by striking the period at the end and inserting 
                ``; or''; and
                    (C) by adding at the end the following:
                            ``(ii) a captive insurance company.''.
    (b) Rule of Construction.--This Act and the amendments made by this 
Act may not be construed to limit a State's taxing authority over an 
insured with respect to any self-procurement transaction involving a 
captive insurance company.
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