Hartford, CT
January 8, 2013

The Connecticut Captive Insurance Association (“CCIA”), the state’s captive insurance trade organization, applauded the pronouncement by Representative Judy Biggert, the outgoing Chair of the U.S. House Subcommittee on Insurance, that the Nonadmitted Reinsurance Reform Act (“NRRA”), was never intended to apply to captive insurance.

Since passage of the NRRA, part of Dodd-Frank, there has been confusion regarding its applicability to captive insurance. In a December 18, 2012 letter to the incoming Chair and Ranking Member of the House Financial Services Committee, Rep. Biggert affirmed unequivocally that the NRRA was never intended to apply to captive insurance.

“This is a very important step toward clarifying that the NRRA does not apply to captive insurance programs,” said Tom Hodson, President of the CCIA. Hodson continued “The confusion, however, will only be settled by either an amendment to NRRA or judicial action. Representative Biggert’s remarks will certainly carry great weight in the final disposition of this issue.”

The CCIA also announced that it has been authorized by its Board of Directors to join an effort to seek the clarification that the NRRA does not apply to captive insurance. That effort, in the form of a new coalition, called the Coalition for Captive Insurance Clarity (“CCIC”), was formed recently under the leadership of the Vermont Captive Insurance Association (“VCIA”). “In light of the importance of this issue to our members and the industry as a whole, we are pleased to join with the VCIA and other coalition members in support of this initiative,” said Hodson. “We look forward to playing a meaningful role in obtaining the clarity that the NRRA does not apply to captive insurance.”

About the Connecticut Captive Insurance Association

The Connecticut Captive Insurance Association is a nonprofit trade association formed to support the growth of the captive insurance market in Connecticut.

The mission of the CCIA is:

  • To promote the interests of the captive insurance industry;
  • To provide a communication interface for members and other groups;
  • To establish policy positions on major issues that affect its members;
  • To represent the interests of the captive insurance industry before federal, state and local government bodies;
  • To provide its members with opportunities for education.

As with most associations, CCIA’s efforts are on behalf of the industry and focused on improving and enhancing the captive market as a whole, and do not expressly reflect the views of any specific member.

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