§ 38a-91yy — Conversion of protected cells and incorporated protected cells by a sponsored captive insurance company.

(a)(1) Any sponsored captive insurance company, including a sponsored captive insurance company licensed as a special purpose financial captive insurance company, may, upon application of such sponsored captive insurance company and with the commissioner's prior written approval, convert one or more protected cells or incorporated protected cells into a: (A) Single protected cell or incorporated protected cell; (B) New sponsored captive insurance company; (C) New sponsored captive insurance company licensed as a special purpose financial captive insurance company; (D) New special purpose financial captive insurance company; (E) New pure captive insurance company; (F) New risk retention group; (G) New agency captive insurance company; (H) New industrial insured captive insurance company; or (I) New association captive insurance company. (2) Any such conversion of a protected cell or incorporated protected cell, in accordance with subdivision (1) of this subsection, shall be subject to the provisions of sections 38a-91aa to 38a-91xx , inclusive, as applicable, and such sponsored captive insurance company's plan of operation approved by the commissioner, without affecting such converted protected cell's or incorporated protected cell's assets, rights, benefits, obligations and liabilities. (b) Any conversion of a protected cell or incorporated protected cell shall be deemed to be a continuation of such protected cell's or incorporated protected cell's existence together with all of such protected cell's or incorporated protected cell's assets, rights, benefits, obligations and liabilities, as (1) a new protected cell or incorporated protected cell, (2) a sponsored captive insurance company, (3) a sponsored captive insurance company licensed as a special purpose financial captive insurance company, (4) a pure captive insurance company, (5) a risk retention group, (6) an industrial insured captive insurance company, or (7) an association captive insurance company, as applicable. Any such conversion of a protected cell or incorporated protected cell shall be deemed to occur without any transfer or assignment of such cell's assets, rights, benefits, obligations or liabilities, and without the creation of any reversionary interest in, or impairment of, any such assets, rights, benefits, obligations or liabilities. (c) Any conversion of a protected cell or incorporated protected cell shall not be construed to limit any rights or protections applicable to such converted protected cell or incorporated protected cell or applicable to such sponsored captive insurance company or sponsored captive insurance company licensed as a special purpose financial captive insurance company, as applicable, that existed immediately prior to the date of such conversion. (d) Any protected cell or incorporated protected cell that converts into an incorporated protected cell, a new captive insurance company or risk retention group, in accordance with the provisions of this section, shall perform such conversion in accordance with chapter 601 or 613, as applicable, or in accordance with any such provisions of the general statutes applicable to the formation of any other type of legal entity permissible under the laws of this state, as applicable.

Legislative History

(P.A. 24-138, S. 15.)