The state of Connecticut, which on June 2 enacted legislation to become a captive insurer domicile, won't be funding the operation for months or hiring a captive administrator any time soon, an official said.
Debra Korta, state legislative program manager, said the law does not become effective until Jan. 1, 2009. "We're in the very early stages of implementing the law," she explained.
What's more, Ms. Korta said, funding for the captive division–allowing for three positions–will not be effective until Oct. 1, 2009. There also is a hiring freeze in effect, issued by Gov. Jodi Rell, which will need to be considered, she said.
Like many other U.S. captive domiciles, the state's new captive law is similar to Vermont's captive statute.
Connecticut also requires "unimpaired paid-in capital and surplus" of $250,000 for a pure captive; $750,000 for an association captive; $500,000 for an industrial insured; and $1 million for a risk retention group.
The new law, S.B. 281, requires that a captive have no less than three incorporators or three organizers, at least one who is a resident of the state.
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