Senator Kelly Applauds the Formation of Connecticut’s First Health Care Liability Captive

HARTFORD, Conn. – Today State Senator and Chairman of the Insurance and Real Estate Committee Kevin Kelly (R-Stratford) released the following statement regarding the establishment of Keystone Indemnity Company, Ltd., as Connecticut’s first health care liability captive insurance company. Originally licensed in Vermont in 2001, Keystone elected to re-domesticate to Connecticut.

“I was thrilled to hear the news that Connecticut has officially licensed its first health care liability captive,” said Sen. Kelly. “In 2011 we worked diligently to make Connecticut a more competitive state by permitting the formation of all types of captive insurance companies. In a continuing effort to make Connecticut more competitive with other states, the General Assembly passed legislation this session which allows the insurance commissioner more authority over capital requirements for captive insurers, all-in-all these steps have made Connecticut more appealing for captive insurance companies.”

The 2011 legislative revision of the existing captive insurance law made Connecticut an attractive state to establish a captive insurance company – partly due to the first-year tax credit for newly established captives. Captive insurance is formalized self-insurance for businesses and is created to insure the risk of its owners and affiliates.

“With Connecticut’s economy continuing to struggle, it is inspiring to see a company relocate here,” said Sen. Kelly. “Helping to incentivize businesses to help create jobs for hard-working families has been a major focus for me as a State Senator and I look forward to watching the captive insurance field grow. In order to get our state back on track we need to focus on what we do well here in Connecticut and insurance is certainly on that list.”