Connecticut's legislature has passed Bill 7183, amending the minimum capital requirements for sponsored captives and adding dormancy provisions.The bill awaits the governor's signature and is expected to take effect on July 1, 2017, lowering minimum paid-in capital and surplus from US$500,000 to US$250,000.

    The bill also gives the Insurance Commissioner discretionary approval authority over minimum paid-in capital for any other type of captive, such as risk retention groups.

    The bill also allows pure captives, sponsored captives and association captives, among others, to enter dormancy after ceasing operations.

    The bill provides clearer rules on the separate and segregated cells of sponsored captives, to prevent sponsored captives from using general account assets for expenses or claim payments.