Vermont Updates Captive Insurance Statutes in 2025 Legislation

Governor Phil Scott has signed Vermont's 2025 insurance housekeeping bill, H.137, into law, enacting a series of targeted updates to the state's captive insurance statutes. The changes were recommended by the Department of Financial Regulation (DFR) captive insurance division in consultation with industry stakeholders, including the Vermont Captive Insurance Association (VCIA).

Governor Scott said Vermont's continued success in the captive sector depends on regularly modernizing its regulatory framework and maintaining strong partnerships between government and the private sector. "By working collaboratively with industry partners and the Legislature, Vermont maintains its strong reputation in this sector and continues to be a place where companies choose to conduct business in," the governor said.

The 2025 bill introduces several key revisions. These include the following.

• Aligning captive licensing authority more closely with the DFR's insurance statutes by referencing 8 V.S.A, Section 3301
• Amendments to acknowledge and distinguish the signing authority of individuals in a manager-managed limited liability company
• Implementing provisions relating to mutual insurers
• Clarifying language for captives conducting business as reinsurance companies

Kaj Samsom, commissioner of the Department of Financial Regulation, said, "It's clear that Vermont's strength as a global leader is due to our regulatory framework, and the DFR's ability to work effectively with the robust network of service providers who have built a strong foundation for success in the industry."

"I am proud the DFR continues the tradition of working well with industry to advance and improve upon the regulatory environment for the long-term success of our domicile," said Sandy Bigglestone, deputy commissioner of the Captive Insurance Division at DFR.

"The VCIA has worked with Vermont's regulators and lawmakers over decades in a collaborative and efficient manner to evolve the industry and improve the experience of captive insurance companies that choose Vermont," said Kevin Mead, CEO of the VCIA.

The legislation comes as the VCIA celebrates its 40th anniversary. The organization will mark the milestone at its annual conference this August in Burlington.

For more information, visit vermontcaptive.com or contact Brittany Nevins at (802) 398–5192 or [email protected].