The Connecticut Captive Insurance Association has named State Senator Joseph J. Crisco, Jr. (D‑Woodbridge) as one of its “2016 Legislative Champions” for his leadership on insurance and risk management policy issues.
The CCIA (www.conncaptives.com) formally recognized Sen. Crisco today at its 2016 Annual Captive Insurance Symposium at the Sheraton in Stamford.
“Thanks to your work on behalf of this critically important industry in Connecticut, you have helped create new jobs in the accounting, actuarial, legal and insurance fields, which continue to make Connecticut the top state in the nation for insurance and insurance- related businesses,” CCIA President Tom Hodson said. “Your hard work and dedication is being recognized on behalf of the many individuals and businesses that are part of the growing captive insurance industry in Connecticut.”
“There was an opportunity a few years ago to update Connecticut’s captive insurance laws, and to make us more competitive on a national scale, and we’ve done that,” said Sen. Crisco, who is Senate Chairman of the legislature’s Insurance and Real Estate Committee. “Insurance is big business in Connecticut, and it’s an even bigger business since we made these captive insurance changes, so I’m very proud and honored that the CCIA is recognizing my hard work on behalf of them and on behalf of the corporations that benefit from our captive insurance opportunities here in Connecticut.”
A captive insurance company is generally defined as an insurance company that is wholly owned and controlled by its insureds; its primary purpose is to insure the risks of its owners, and the insured parties benefit from the captive insurer’s underwriting profits. When an insurance plan offered by a mainline insurance company doesn’t meet a company’s particular risk needs, that company might then form its own captive insurer.
Connecticut’s 2011 legislative revision of its existing captive insurance law made Connecticut a more attractive place to locate a captive insurance company, in part due to a first-year tax credit of $7,500 for newly established captives, fine-tuned language about what constitutes “common ownership and control” for the purpose of aggregating tax liability among multiple insurers, and an easier path for captive insurance companies to satisfy various IRS demands.
