24 April 2019Analysis

Vermont Governor signs into law captive bill for 2019

Vermont Governor Phil Scott has signed into law a bill to tidy up and modernise parts of its captive insurance law as it enters its 2019 legislative session.

Senate bill 109 provides flexibility in investments by giving companies the option to follow the old rules, or develop a plan for Vermont DFR approval.

The bill also makes changes to the examination schedule for captives, requiring them to be examined every five years as opposed to three.

Another change relates to the new captive structures, affiliated reinsurance companies (ARCs), which now require National Association of Insurance Commissioners (NAIC) statutory accounting.

Captive International previously  spoke to David Provost, deputy commissioner of the captive insurance division of the Vermont DFR, who said the bill should help tidy up and modernise some of Vermont’s captive laws.