| Last Action | signed by Governor (Acts ch. 91) |
|---|---|
| Title | AN ACT relating to captive insurers. |
| Bill Documents |
Bill
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| Bill Request Number | 1145 |
| Sponsors | S. Riggs, J. Greer |
| Summary of Original Version | Amend KRS 304.49010 to expand the definitions of "captive insurer," "consortium," "consortium captive insurer," and "controlled unaffiliated business'; amend KRS 304.49-020 to authorize the executive director to provide retention risk group confidential application and examination information to NAIC representatives for accreditation review if the NAIC agrees in writing to maintain confidentiality of the information; amend KRS 304.49-040 to require that a consortium, sponsored, or agency captive insurer maintain unimpaired paid-in capital and surplus of not less than $500,000; to decrease the minimum free surplus for a captive insurer organized as a reciprocal insurer from $1 million to $500,000; and to authorize the executive director to approve a surplus note for capital and surplus requirements; amend KRS 304.40-050 to authorize the executive director to rescind approval and require repayment of captive insurer dividend payments made in excess of the approved amount; amend KRS 304.49-060 to provide that all captives may be formed as an LLC, LLP, or statutory trust, in accordance with the 2007 amendments to the state corporations, nonprofit, partnership, limited partnership, and business trust laws; amend KRS 304.49-070 to incorporate various minor changes for streamlining financial filings and clarifying optional filing and report requirements for captives with nontraditional fiscal year accounting schedules; amend KRS 304.49-100 to consolidate investment requirements for all captive insurers, except an industrial insured captive insurer, by requiring all captive insurers to establish, monitor, and control their investment strategy, which shall not be subject to limitations contained in Subtitle 7 of KRS Chapter 304; authorize the executive director to prohibit or limit any investment that threatens the company's solvency or liquidity and to delete the separate restrictions; delete the separate provisions for investment requirements for the various captive insurers; amend KRS 304.49-110 to clarify the requirements for a captive insurer to provide reinsurance on risks ceded by another insurer or captive; amend KRS 304.49-130 to clarify that in the normal course of business this section does not prohibit captive insurers from entering into reinsurance or pooling transactions; amend KRS 304.49-170 to authorize, rather than require, the executive director to promulgate administrative regulations establishing standards for risk management functions of any controlled unaffiliated business insured by a pure captive insurer; authorize the executive director to approve the coverage of such risks; amend KRS 304.49-140 to include other legal or statutory entities which may be converted or merged with and into a reciprocal insurer; amend KRS 304.49-220 to add self-insurers to the exemption from the reinsurance premium tax; amend KRS 304.49-222 to require a captive insurer's manager to be approved by the executive director and delete the requirement that the manager be a resident of Kentucky; amend KRS 304.49-226 to clarify that the executive director shall be notified of any change in the operations of the captive insurer's financial condition or management by the management, the insurer, or the manager; require a captive insurer to notify the executive director of any changes in the officers, directors, owners, captive manager, actuary, or auditor; and authorize a captive insurer to make loans to its parent company or affiliate with approval of the executive director and evidenced by a note. |
| Index Headings of Original Version |
Insurance - Captive insurers, definitions Insurance - Captive insurers, formation Insurance - Captive insurers filings and reports, streamlining Insurance - Captive insurers, minimum capital for specified captives, lowering of Insurance - Captive insurers redomestication process, simplification |
| Proposed Amendments | House Floor Amendment 1 |
| Votes | Vote History |
| 01/12/10 |
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|---|---|
| 01/13/10 |
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| 01/15/10 |
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| 01/20/10 |
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| 01/21/10 |
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| 01/26/10 |
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| 01/27/10 |
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| 01/28/10 |
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| 03/16/10 |
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| 03/17/10 |
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| 03/24/10 |
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| 03/25/10 |
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| 03/26/10 |
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| 03/29/10 |
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| 04/08/10 |
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| Amendment | House Floor Amendment 1 |
|---|---|
| Sponsor | B. Damron |
| Summary | Delete Section 2 in its entirety and renumber subsequent sections to conform; delete the provision that requires an industrial insured captive insurer to meet the standards of the National Association of Insurance Commissioners in order to provide reinsurance or take credit for reinsurance ceded if it is insuring the risks of an industrial insured group. |
| Index Headings |
Insurance - Captive insurers, definitions Insurance - Captive insurers, formation Insurance - Captive insurers filings and reports, streamlining Insurance - Captive insurers, minimum capital for specified captives, lowering of Insurance - Captive insurers redomestication process, simplification |
Last updated: 8/28/2019 7:34 AM (EDT)