OLR BILL ANALYSIS

sHB 5229

AN ACT EXEMPTING CERTAIN ASSOCIATIONS FROM THE INSURANCE STATUTES.

SUMMARY:

This bill exempts Internal Revenue Code 501(c) (23) tax-exempt organizations from all Connecticut insurance laws from July 1, 2012 to July 1, 2015.

EFFECTIVE DATE: July 1, 2012

BACKGROUND

501(c)(23) Organizations

To be tax-exempt under Internal Revenue Code 501(c) (23), an organization must:

1. have a principal purpose of providing insurance and other benefits to veterans or their dependents.

2. have more than 75% of its members be past or present members of the U. S. Armed Forces; and

3. be an association organized before 1880;

COMMITTEE ACTION

Insurance and Real Estate Committee

Joint Favorable Substitute

Yea

19

Nay

0

(03/15/2012)