Navigation Links
Vermont’s Captive Insurance Legislative Agenda Signed Into Law

Governor Phil Scott signed new legislation into law strengthening Vermont’s captive regulation in a variety of areas. This year’s bill proposed several updates to Vermont’s leading captive law, including modifications to the captive examination schedule and improvements to the statute governing group captive investments. The many enhancements included in this year’s bill highlight the state’s ability to work closely in partnership with Vermont’s Governor and state legislature to ensure its captive law remains the industry gold standard.

“Part of what makes Vermont a leading domicile for captive insurance is our work to continuously modernize our regulations in this area,” stated Governor Phil Scott. “Captive insurance is a highly competitive sector and my Administration is pleased to continue to work collaboratively with the legislature to consistently ensure our captive law keeps pace with the fast-changing needs of the industry.”

Among the many updates included in this year’s captive bill are tweaks to Vermont’s captive examination schedule. The new law will change the captive examination schedule from once every three years (which can be extended to five years) to not less than every five years. The commissioner retains the authority to examine companies whenever deemed necessary. “This will better reflect the state’s current practice of prioritizing examinations based on an assessment of the company’s risk,” said Dave Provost, Deputy Commissioner of Captive Insurance. “I believe the captive industry will welcome this move, along with other updates included in the bill.”

Vermont’s new law also modernizes flexibility in investments by allowing companies the ability to either adhere to current investment rules or develop their own plan for approval by the Department of Financial Regulation. “For certain captives, the old law required companies to follow prescriptive, often strict investment statutes,” said Ian Davis, Director of Financial Services. “This move will allow Vermont statutes to keep pace with the rapid changes in the investment environment.”

"As we have for many years, we worked collaboratively with the Department of Financial Regulation to develop a consensus bill that will help grow our industry while maintaining our state’s prudent regulatory standards,” said Richard Smith, President of the Vermont Captive Insurance Association. “We are grateful for the continued support from Governor Scott and that of the state legislature.”

Additional changes include clarifying the definition of an independent director, requiring National Association of Insurance Commissioners (NAIC) statutory accounting for affiliated reinsurance companies, and a specific inclusion of sole proprietorships among eligible businesses to be cell participants. Importantly, the bill also allows captives to now use any organizational form permitted by Vermont law, ensuring the captive statute will automatically stay current when future changes occur.

A summary of the changes in the law include the following:

Dividends & Distributions – Amends statute to clearly identify nonprofit incorporated protected cells as eligible for dividends or distributions with commissioner approval.

Captive Formation – Allows captives to use any organizational form permitted by Vermont law. This includes sponsored cell captives and the incorporated cells within.

Attorney-in-Fact Bond – Allows the commissioner to exempt the attorney-in-fact from the bonding requirements under specific circumstances.

Examinations – Modifies the examination schedule to “five years or more frequently as needed.”

Investments – Provides flexibility in investments by giving companies the option to develop their own investment plan for DFR approval.

Sole Proprietorships – Specifically includes sole proprietorships as eligible business to be cell participants.

Accounting Standards for ARCs – Requires NAIC statutory accounting for Affiliated Reinsurance Companies (ARCs).

RRG Independent Directors – Clarifies the governance standards for risk retention groups, specifically the definition of Independent Director.

Own Risk and Solvency Assessment – Applies subchapter 7A of chapter 101 (ORSA) to Risk Retention Groups (RRGs).

For more information on Vermont’s captive industry, visit, call Ian Davis at 802-828-5232 or email ian(dot)davis(at)vermont(dot)gov.

The Department of Economic Development operates within the Agency of Commerce and Community Development, whose mission is to help Vermonters improve their quality of life and build strong communities.

Read the full story at

Source: PRWeb
Copyright©2019 Vocus, Inc.
All rights reserved

Related medicine news :

1. Vermont’s Captive Insurance Regulator Deemed “Most Influential”: Captive Review Magazine Publishes Annual List
2. CICA Selects Captive Insurance Industry Leader Dan Towle as New President
3. Decosimo to Serve as Exhibitor & Captive Insurance Presenter at Tennessee Health Care Convention
4. Parallel 6 Releases Captive Reach 3.01 as Mobile Medicine for the Cost-obsessed Healthcare Industry
5. Captive breeding for thousands of years has impaired olfactory functions in silkmoths
6. Motif Medical Introduces Luna Breast Pump - Device is Powerful, Customizable and Insurance Eligible
7. The Dentists Insurance Company Earns AM Best A Rating for 25th Consecutive Year
8. All* Above All Announces U.S. Senate & House Introduction of the EACH Woman Act -- Bill Ensures Insurance Coverage for Abortion
9. Dentists Benefits Insurance Company and Northwest Dentists Insurance Company Receive Final Approval To Merge With The Dentists Insurance Company
10. HM Insurance Group Announces New Chief Operating Officer
11. NFP Ventures Invests in Nubundle Inc., Insurance and Lending Support for Fertility Services
Post Your Comments:
(Date:5/24/2019)... (PRWEB) , ... May 24, 2019 , ... ... possess and use sunscreen in school. The law, signed by Governor Steve Sisolak, ... sun-safe behaviors. This ensures children are protected from overexposure to the sun, thus ...
(Date:5/23/2019)... ... May 23, 2019 , ... Smashtech has been named one ... the third year in a row. , Hitting newsstands May 28, in the ... the result of a wide-ranging and comprehensive measurement of private American companies that have ...
(Date:5/23/2019)... ... May 23, 2019 , ... Mirror Mirror Beauty Boutique is ... landmark represents years of dedication to patient satisfaction and top-notch medical care. The ... welcoming location where patients can come for exceptional skincare and innovative, noninvasive techniques. ...
(Date:5/23/2019)... ... May 23, 2019 , ... In a ... Altus Assessments has published new research in an academic journal, Academic Medicine, demonstrating ... of increasing the racial and ethnic diversity of incoming medical students. , Although ...
(Date:5/23/2019)... ... 23, 2019 , ... Hoban Law Group is proud to be partnering with ... is essential to help educate the public about the most sweeping cannabis reform policy ... do so than Times Square,” said Hoban Law Group Founder & President Bob Hoban. ...
Breaking Medicine News(10 mins):
(Date:5/23/2019)... ... May 24, 2019 , ... Post-Market Surveillance: How FDA Regulates ... Agency Rules, Avoid Liability, and Implement Best Practices, **Law Offices of Covington & ... , Early bird pricing for Post-Market Surveillance: How FDA Regulates ...
(Date:5/23/2019)... ... May 23, 2019 , ... SoniVie, an Israeli company ... announced the presentation of positive data from a multi-center international clinical trial of ... who are on a stable regimen of dual-oral combination therapy. Alex Rothman, MD, ...
(Date:5/23/2019)... ... May 23, 2019 , ... Date aired: May 20th, 2019 ... training manager at Bunzl Safety, Canada ( ) , “Your relationship to ... The Sharon Kleyne Hour Water Life Science®/Nature’s Pharma®, The Power of Water® & ...
Breaking Medicine Technology: