Captive Insurers Clarification Act

Bill: 113-s-2726
Sponsor: full_name: Sen. Leahy, Patrick J. [D-VT]
Introduced: 2014-07-31
Policy area: Finance and Financial Sector
Subjects: Insurance industry and regulation

State and local government operations
Latest action: action_date: 2014-07-31
text: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2014-07-31
action_desc: Introduced in Senate
text: <p>Captive Insurers Clarification Act - Amends the Nonadmitted and Reinsurance Reform Act of 2010 to define &quot;captive insurance company&quot; as an insurance company wholly owned directly or indirectly: (1) by a single parent company and whose primary purpose is to insure the risks of that single parent company or its affiliates; (2) by a group of companies and whose primary purpose is to insure the risks of that group or its affiliates; and (3) by an industry, trade, or service group or association, and whose primary purpose is to insure the risks of any member in that group or association, including any member affiliate.</p> <p>Excludes a captive insurance company from the meaning of a &quot;nonadmitted insurer&quot; (that is not licensed to engage in the business of insurance in a state), and from any requirements (including state tax requirements) applying to a nonadmitted insurer.</p>

tv_txt: II 113th CONGRESS 2d Session S. 2726 IN THE SENATE OF THE UNITED STATES July 31, 2014 Mr. Leahy (for himself and Mr. Graham ) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To clarify the definition of nonadmitted insurer under the Nonadmitted and Reinsurance Reform Act of 2010, and for other purposes.

1. Short title This Act may be cited as the Captive Insurers Clarification Act . 2. Captive insurers 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. .