Conn. Gen. Stat. § 38a-91zz: Conversion of captive insurance companies into protected cells.

(a)(1) Any captive insurance company domiciled in this state and organized as an agency captive insurance company, association captive insurance company, industrial insured captive insurance company, pure captive insurance company, risk retention group or special purpose financial insurance company may, with the commissioner's prior written approval, convert into a protected cell.

(2) Any such conversion of a captive insurance company, in accordance with the provisions of subdivision (1) of this subsection, shall be subject to the provisions of sections 38a-91aa to 38a-91tt, inclusive, as applicable, and such captive insurance company's plan of operation approved by the commissioner, without affecting the converted captive insurance company's assets, rights, benefits, obligations or liabilities.

(b) Any conversion of a captive insurance company into a protected cell shall be deemed to be a continuation of such converted captive insurance company's existence together with all of such captive insurance company's assets, rights, benefits, obligations and liabilities as a protected cell. Any such conversion of a captive insurance company shall be deemed to occur without any transfer or assignment of such captive insurance company's assets, rights, benefits, obligations or liabilities, and without the creation of any reversionary interest in, or impairment of, any such assets, rights, benefits, obligations or liabilities.

(c) Any conversion of a captive insurance company shall not be construed to limit any rights or protections applicable to such captive insurance company under subsection (c) of section 38a-91bb, as applicable, that existed immediately prior to the date of such conversion.

(d) Any captive insurance company that converts into a protected cell, in accordance with the provisions of this section, shall perform such conversion, in accordance with chapter 601 or 613, as applicable, or in accordance with any such provisions of the general statutes applicable to the formation of any other type of legal entity permissible under the laws of this state, as applicable.

(e) Any sponsored captive insurance company, including a sponsored captive insurance company licensed as a special purpose financial insurance company, may, (1) with the prior consent of each participant of the affected protected cell or as otherwise permitted pursuant to a participation agreement, or the consent of the affected incorporated protected cell, (2) upon application of the sponsor, and (3) with the commissioner's prior written approval, sell, transfer, assign or otherwise convey a protected cell, together with all of such protected cell's assets, rights, benefits, obligations and liabilities, to a new or existing sponsored captive insurance company or sponsored captive insurance company licensed as a special purpose financial insurance company, pursuant to any plan of operation approved by the commissioner.

(f) Any sale, transfer, assignment or conveyance of a protected cell, in accordance with the provisions of subsection (e) of this section, shall be deemed to be a continuation of such protected cell's existence, together with all of such protected cell's assets, rights, benefits, obligations and liabilities, as a protected cell of the transferee sponsored captive insurance company.

(g) No sale, transfer, assignment or conveyance of a protected cell, in accordance with the provisions of subsection (e) of this section, shall limit any rights or protections applicable to the transferred protected cell and the transferor sponsored captive insurance company or sponsored captive insurance company licensed as a special purpose financial insurance company under this chapter, as applicable, that existed immediately prior to the date of such sale, transfer, assignment or conveyance.