Montpelier, Vt. – On Monday, May 8th, Governor Phil Scott signed legislation into law making several updates to Vermont’s statutes. Bill H.76 proposed several updates to Vermont’s captive insurance law, such as improving the confidentiality of company information and increasing funding for the Vermont Captive Insurance Division’s operations.
“Vermont continues to be the worldwide leader in the captive insurance market, and this bill makes additional steps to enhance our strong reputation,” said Governor Phil Scott. “The hard work of the Vermont Department of Financial Regulation (DFR) and their partnerships in the industry ensure Vermont continues to see the significant economic benefits that come with our leadership in this sector."
Multiple updates were made with industry input to clarify regulatory expectations and best practices. The legislation aligns the statute with the information collected when a new company applies for a license, updates the language for how the confidentiality of the information collected is handled, extending such treatment to subsequent updates, approved amendments or revisions to a company’s information, and its plan of operation. Other sections of the bill include updates to references, the allowance of electronic records as an acceptable form of record retention, and amends protected cell naming conventions to be inclusive of all allowable business types.
“Vermont is the gold standard when it comes to captive insurance regulation. Captive owners have consistently communicated the need to operate in a jurisdiction with quality regulation because it adds value to their investment in managing their own risk and provides support for the captive operations of the organization,” said Vermont Deputy Commissioner of Captive Insurance, DFR, Sandy Bigglestone.
The legislation also included support for an appropriate level of funding for the DFR Captive Insurance Division to enable sustainable regulatory staffing and adequate resources to improve the environment captive insurance companies operate in, without compromising standards.
“The benefits of the captive insurance industry to Vermont include significant tax and fee revenue that supports the state’s essential programs, green job creation, and tourism revenue from business conducted in the state,” said Brittany Nevins, Captive Insurance Economic Development Director, Department of Economic Development. “It is necessary on occasion to invest in the program, so it continues to provide this great benefit to Vermonters and captive insurance companies alike.”
“We are grateful to work once again with Vermont’s regulators and lawmakers in improving the legislation to better reflect the changing needs of captive insurance companies and keep pace with the tremendous growth of this industry,” said Kevin Mead, President, Vermont Captive Insurance Association. “What makes Vermont unique is its proactive approach to anticipated needs.”
For more information on Vermont’s captive insurance industry, visit www.vermontcaptive.com, call Brittany Nevins at 802-398-5192 or email Brittany.nevins@vermont.gov.
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About Vermont Captive Insurance
Captive insurance is a regulated form of self-insurance that has existed since the 1960’s and has been a part of the Vermont insurance industry since 1981, when Vermont passed the Special Insurer Act. Captive insurance companies are formed by companies or groups of companies as a form of alternative insurance to better manage their own risk. Captives are commonly used for corporate lines of insurance such as property, general liability, products liability, or professional liability.