Captive Insurers Clarification Act

Bill: 115-hr-7133
Sponsor: full_name: Rep. Welch, Peter [D-VT-At Large]
Introduced: 2018-11-14
Policy area: Finance and Financial Sector
Subjects: Insurance industry and regulation

State and local government operations
Latest action: action_date: 2018-11-14
text: 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.

Summaries:
action_date: 2018-11-14
action_desc: Introduced in House
text: <p><b>Captive Insurers Clarification Act </b></p> <p>This bill specifies that captive insurance companies&nbsp;are not&nbsp;nonadmitted insurers under the Nonadmitted and Reinsurance Reform Act of 2010, which provides that nonadmitted insurers are&nbsp;regulated by&nbsp;the insured's home state. </p>

tv_txt: I 115th CONGRESS 2d Session H. R. 7133 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.

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