--- title: HB 348. Insurance; expand lines of insurance or reinsurance in which a limited purpose subsidiary and captive insurance company may engage collection: bills id: 2025-2026/hb348 cite_as: HB 348, 2025-2026 Regular Session (Ga.) canonical_url: https://georgiacommons.org/bills/2025-2026/hb348 md_url: https://georgiacommons.org/bills/2025-2026/hb348.md text_url: https://georgiacommons.org/bills/2025-2026/hb348/text source_url: https://www.legis.ga.gov/legislation/70110 date: 2025-05-14 status: passed corpus_version: bills-2026-08-28 license: Public record of the Georgia General Assembly, via LegiScan; see about.md publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice. up: https://georgiacommons.org/bills/2025-2026.md previous: https://georgiacommons.org/bills/2025-2026/hb347.md next: https://georgiacommons.org/bills/2025-2026/hb349.md index: https://georgiacommons.org/bills/index.md omitted: votes and history omitted_chars: 1479 omitted_url: https://georgiacommons.org/bills/2025-2026/hb348.md?full=1 bill_number: HB 348 session: 2025-2026 Regular Session session_slug: 2025-2026 chamber: House bill_type: bill status_date: 2025-05-14 last_action: Effective Date 2025-06-01 sponsors: - Bruce Williamson - Eddie Lumsden - Steve Tarvin - James Burchett - Carolyn Hugley - Darlene Taylor - Larry Walker text_version: Enrolled has_text: true legiscan_url: https://legiscan.com/GA/bill/HB348/2025 upstream_id: 1964596 summaries_model: claude-sonnet-5 topic_tags: - insurance regulation - captive insurance companies - reinsurance - business financing --- # HB 348. Insurance; expand lines of insurance or reinsurance in which a limited purpose subsidiary and captive insurance company may engage ## Text 25 LC 52 0715/AP House Bill 348 (AS PASSED HOUSE AND SENATE) By: Representatives Williamson of the 112th, Lumsden of the 12th, Tarvin of the 2nd, Burchett of the 176th, Hugley of the 141st, and others A BILL TO BE ENTITLED AN ACT To amend Chapters 14 and 41 of Title 33 of the Official Code of Georgia Annotated, relating1 to domestic stock and mutual insurers and captive insurance companies, respectively, so as2 to expand the lines of insurance or reinsurance in which a limi ted purpose subsidiary and3 captive insurance company may engage; to provide for definition s; to provide for related4 matters; to provide for an effective date; to repeal conflicting laws; and for other purposes.5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:6 SECTION 1.7 Chapter 14 of Title 33 of the Official Code of Georgia Annotated, relating to domestic stock8 and mutual insurers, is amended in Article 5, relating to limited purpose subsidiary insurance9 companies, by revising Code Section 33-14-103, relating to powe rs of limited purpose10 subsidiary, as follows:11 "33-14-103.12 (a) As used in this Code section, the term 'sponsor' means any entity that sponsors or13 co-sponsors the formation of a limited purpose subsidiary or the issuances of securities by14 a limited purpose subsidiary or participates in a limited purpose subsidiary as an investor15 or otherwise assists with the raising of equity or debt for a limited purpose subsidiary.16 H. B. 348 - 1 - 25 LC 52 0715/AP (b) A limited purpose subsidiary that is granted a certificate of authority by the17 Commissioner under this article:18 (1) Is wholly owned by the organizing domestic reinsurer or one or more sponsors;19 (2) Is authorized to engage in the business of reinsurance only for the lines of insurance20 for which the organizing domestic reinsurer or a sponsor is authorized; and21 (3) May reinsure only risks of the organizing domestic reinsurer; and22 (4) May access alternative forms of financing."23 SECTION 2.24 Chapter 41 of said title, relating to captive insurance companies, is amended in Code Section25 33-41-2, relating to definitions, by revising paragraph (6) as follows:26 "(6) 'Controlled unaffiliated business' means:27 (A) Any person:28 (i) That is not in the corporate system of a parent and its affiliated companies;29 (ii) That has an existing a reinsurance, risk-sharing, or other contractual relationship30 with a parent or one of its affiliated companies or is a direct or indirect investor in a31 pure captive insurance company; and32 (iii) Whose risks are managed by or directly or indirectly ceded to a captive insurance33 company in accordance with this chapter and approved by the Commissioner; or34 (B) A reinsurance arrangement with other captive insurance com panies that is35 approved by the Commissioner."36 SECTION 3.37 Said chapter is further amended in Code Section 33-41-3, relati ng to permissible business38 and limitations, by revising subsection (a) as follows:39 "(a) Subject to the provisions of subsection (c) of this Code s ection and the other40 provisions of this chapter, a captive insurance company, where permitted by its formation41 H. B. 348 - 2 - 25 LC 52 0715/AP documents, may engage in the business of any of the following k inds of insurance or42 reinsurance: that the Commissioner may deem reasonable.43 (1) Casualty, as described in Code Section 33-7-3 but excluding accident and sickness44 insurance as defined in Code Section 33-7-2, except for a pure captive insurance45 company, which may engage in the business of accident and sickn ess insurance as46 defined in Code Section 33-7-2;47 (2) Marine and transportation, as described in Code Section 33-7-5;48 (3) Property, as described in Code Section 33-7-6; and49 (4) Surety, as described in Code Section 33-7-7."50 SECTION 4.51 This Act shall become effective on the first day of the month following the month in which52 it is approved by the Governor or upon its becoming law without such approval.53 SECTION 5.54 All laws and parts of laws in conflict with this Act are repealed.55 H. B. 348 - 3 - ## Summaries written by Georgia Commons The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary. House Bill 348 loosens Georgia insurance law to let limited purpose subsidiaries use more financing options and let captive insurance companies write broader lines of insurance or reinsurance, subject to state approval. ### Plain-language summary Georgia law lets certain insurers set up limited purpose subsidiaries and captive insurance companies to handle specialized reinsurance and risk-sharing arrangements. This bill changes both types of entities. For limited purpose subsidiaries, it adds a new power letting them access alternative forms of financing, in addition to their existing ability to reinsure only the risks of the parent insurer that formed them. For captive insurance companies, the bill rewrites the rule on what kinds of insurance or reinsurance business they can write. Instead of limiting them to a fixed list (casualty, marine and transportation, property, and surety insurance), the bill lets a captive insurance company write any kind of insurance or reinsurance business that the state Insurance Commissioner considers reasonable. The bill also updates the definition of "controlled unaffiliated business" used in the captive insurance chapter. The changes take effect the first day of the month after the Governor signs the bill or it otherwise becomes law. ### What it does - Adds a new power letting a limited purpose subsidiary insurance company access alternative forms of financing, on top of its existing reinsurance powers. - Removes the fixed list of insurance lines (casualty, marine and transportation, property, surety) that captive insurance companies were limited to writing. - Lets a captive insurance company instead write any kind of insurance or reinsurance business that the Insurance Commissioner deems reasonable. - Updates the definition of 'controlled unaffiliated business' in the captive insurance law (O.C.G.A. § 33-41-2) to clarify who qualifies and how their risks must be managed or ceded. - Sets the effective date as the first day of the month after the Governor signs the bill or it becomes law without signature. ### Who it affects The bill affects domestic reinsurers and their limited purpose subsidiaries, captive insurance companies and the parent businesses that own them, sponsors who help finance these entities, and the Georgia Insurance Commissioner's office, which gains discretion to approve broader lines of business. ### Why it matters Businesses that use captive insurance companies to insure their own risks could gain access to a wider range of insurance and reinsurance lines instead of a fixed list, while limited purpose subsidiaries gain a new way to raise financing, potentially changing how these specialized insurance arrangements are structured and funded in Georgia. ### Key provisions - Section 1 revises O.C.G.A. § 33-14-103 to add a fourth power for limited purpose subsidiaries: the ability to access alternative forms of financing. - Section 2 revises the definition of 'controlled unaffiliated business' in O.C.G.A. § 33-41-2, clarifying the relationships and risk-management arrangements that qualify. - Section 3 revises O.C.G.A. § 33-41-3(a) to let captive insurance companies write any insurance or reinsurance business the Commissioner deems reasonable, rather than only the previously listed lines. - Section 4 sets the effective date as the first day of the month following gubernatorial approval or the bill becoming law without approval. - Section 5 repeals any conflicting laws. ## Status - Status: Passed (2025-05-14) - Last action: Effective Date 2025-06-01 (2025-05-14) - Sponsors: Bruce Williamson, Eddie Lumsden, Steve Tarvin, James Burchett, Carolyn Hugley, Darlene Taylor, Larry Walker - Official page: https://www.legis.ga.gov/legislation/70110 > The history, votes, and amendments (1,479 characters) are at https://georgiacommons.org/bills/2025-2026/hb348.md?full=1