The crux of the invoice is to extend the cap on the quantity of capital that captive insurance coverage firms should hold readily available. Pure captive insurance coverage firms, beforehand required to keep up unimpaired paid-in capital and surplus of $100,000, are actually required to keep up $250,000, or an alternate quantity established by the Secretary with actuarial assist. Protecting cell captive insurance coverage firms face the same enhance from $100,000 to $250,000 on the identical discretion of the Commissioner. Essentially the most dramatic enhance was for reinsurance captive insurers, whose minimal quantity jumped from $10,000 to $1 million, leaving no room for the Secretary to set a decrease various. Threat retention teams, which had been beforehand bundled into affiliation captives at $500,000, will now be separated into their very own class at $1 million, or one other quantity set by the Secretary with actuarial assist. Capital thresholds for presidency company captives, affiliation captives, industrial insurance coverage captives, and department captives stay unchanged.
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