Vermont Governor Signs Legislation Updating State's Captive Law
June 18, 2020
Vermont Governor Phil Scott has signed legislation updating Vermont's captive insurance law. Changes made by the measure were intended to increase efficiency while adding flexibility to the state's regulatory policies and procedures.
In announcing the signing, the governor noted that Vermont regularly updates its captive law.
"The bill I signed demonstrates—as we do every year—that Vermont does not take this sector for granted, and we are firmly committed to keeping pace with the ever-evolving needs of the captive insurance industry," he said in a statement.
This year's captive legislation includes new policies related to Vermont's captive protected cells.
"One of the key changes recognizes the importance of cells in the captive industry and makes it clear that a cell can operate—and should be regulated—much the same as an individual captive," Dave Provost, Vermont's deputy commissioner of captive insurance, said in the statement. "I believe the captive industry will welcome this change, along with other updates included in the bill."
Among the additional updates in this year's legislation are allowing separate accounts within a cell of a sponsored captive, simplifying an agency captive owner's disclosure requirements, aligning with the National Association of Insurance Commissioners statutory accreditation standards for Risk Retention Groups, and allowing dormant captives to remain intact at a minimum capital level so they may be reactivated in the future.
June 18, 2020