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House passes captive-insurance amendments to attract locally domiciled captives

Utah House of Representatives · January 23, 2008
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Summary

The Utah House approved First Substitute House Bill 55 to revise the state's Captive Insurance Act, creating a new captive classification to attract locally domiciled companies and allow fee and dedicated-account changes to support examiners; the bill passed 69–0 and will go to the Senate.

Representative D. Dunnegan, sponsor of First Substitute House Bill 55, told the House the measure adds a new classification to Utah's Captive Act to allow certain locally domiciled firms to form captives in the state and said the approach is part of a multiyear effort to attract captive insurers.

Dunnegan described captives as "limited-purpose insurance companies" often used by large corporations to self-insure risks that are either unavailable or costly in the commercial market. He…

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