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The COVID-19 Pandemic: Opportunities and Implications for Captive Insurance

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Captive Industry Prepares for Vermont's Legislative Day Conference

The Vermont state house against a background of trees and the sky with clouds
December 20, 2019

A wide array of captive insurance company issues will be discussed in January at the Vermont Captive Insurance Association's annual Legislative Day conference.

The conference, to be held January 22 in Montpelier, includes a Q and A session with David Provost, Vermont's deputy commissioner of captive insurance, and Sandy Bigglestone, director of captive insurance.

In addition, there will be meetings with Vermont legislative leaders as well as presentations to Vermont House and Senate committees. Either Vermont Governor Phil Scott or Lieutenant Governor David Zuckerman will be a luncheon speaker, and there will also be an evening reception with state legislators.

Vermont captive regulators say the conference offers a great opportunity for the state's captive industry to meet with lawmakers.

"Part of what makes Vermont the leading domicile is the close working relationship we have with our state's elected officials—irrespective of the political party. Nowhere else is that partnership better exhibited than during VCIA's Legislative Day, a day where the industry meets with Vermont's top political leaders," said Ian Davis, Vermont's director of financial services.

"Legislative Day is our opportunity to meet with our legislators, in particular, the House Commerce Committee and the Senate Finance Committee that will take up our annual captive bill," said Mr. Provost.

"We'll talk a little about that, but more about the captive industry in Vermont: how it benefits Vermont by creating jobs and bringing in tax revenue, how competitive the market is, the emerging hard market and its likely impact in the coming year," he added.

The conference follows an active 2019 legislation session in which Vermont lawmakers made several changes to the Green Mountain State's captive statute.

For example, legislators approved a measure in April that gives captives more time between mandatory financial examinations.

Under the new law, those examinations will now be every 5 years, though captive regulators will retain the authority to conduct more frequent examinations.

Under prior law, the examinations had been required every 3 years, though captives were allowed to seek waivers to have the examinations every 5 years.

The measure also gives captives the option to follow current investment rules or develop an alternative investment plan. That investment plan would have to be submitted for review to the state insurance commissioner.

Other changes state legislators have approved in recent years include reducing captive minimum capitalization requirements, reducing the number of individuals required to sign a captive's incorporation papers, and eliminating premium taxes for dormant captives.

With 580 captives at the end of 2018, Vermont, whose original captive statute was passed in 1981, is, by far, the largest US domicile.

More information about the conference is available at the VCIA website. Attendance is limited to VCIA members.
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