Committee hears H.649 to codify captive-insurance reporting and bar member loans to risk-retention groups

A legislative committee heard testimony Feb. 12 on H.649, an annual captive-insurance bill that would codify existing regulatory practice and tighten reporting and funding attestations for captive insurers.

Deputy Commissioner Christine Brown of the Department of Insurance Regulations told the committee the bill’s first section would bar risk retention groups from making loans to or investments in their members or affiliates, while preserving an exception for arrangements in effect before Jan. 1, 2026. "We really want to make sure that the premium dollars and the capital that is in the risk retention group is preserved to pay the claims," Brown said, explaining the department’s reason for codifying what it described as longstanding practice.

The bill also clarifies reporting requirements. Legislative counsel explained the proposal adds explicit statutory language requiring risk retention groups to file an annual…