Governor Phil Scott has signed Bill H.659 into law making several changes to the Vermont captive insurance statute.
Each year the Vermont Captive Insurance Association (VCIA) works with the Vermont Department of Financial Regulation (DFR) to propose updates to captive insurance statutes based on industry feedback.
“Vermont has a strong foundation of regulators and service providers who work together to ensure our state is as supportive as possible for Vermont’s captive insurance companies,” said Governor Scott.
“The passage of the yearly captive bill is always an important action to further improve the quality of our regulation.”
Highlights of this year’s bill include adding explicit language allowing for conversions of captives into protected cells, amending language for parametric contracts to allow for different parametric contract structures, while statutory redundancies were addressed pertaining to confidentiality requirements.
There has also been an amendment reducing the minimum capital for an agency captive from $500,000 to $250,000.
A lower minimum capital requirement is expected to compare more consistently with the captive market, without lowering expectations of captive insurance companies.
While the Bill had been sitting on the Governor’s desk awaiting his signature, Captive Intelligence published a long read exploring the Bill in detail and what the amendments could mean for the Vermont captive landscape.
“This process is essential for Vermont to proactively address inefficiencies in its statutes without compromising on quality regulation,” said Brittany Nevins, captive insurance economic development director at the Vermont Department of Economic Development.
“This annual process ensures that Vermont is continuing to regulate captive insurance companies as best as possible.”