Vermont Captive Insurance
Vermont Captive Insurance
Department of Financial Regulation, Captive Insurance Division
89 Main Street
Montpelier, VT 05620-3101
Website: www.vermontcaptive.com
Name of Captive Legislation
Title 8 Vermont Statutes Annotated, Chapters 141 and 142
Year Legislation Passed
1981 under Vermont’s Special Insurer Act
Recent Amendments
For legislative updates and other Vermont Captive news, please go to https://www.vermontcaptive.com/news-events/
Do you allow Cell Captives?
Yes. See 8 V.S.A. Chapter 141, Subchapter 2. Sponsored Captive Insurance Companies, Sections 6031 – 6039.
Total Number of Licenced Captives (31 Dec 2022)
1283 Total Licenses Issued; 608 Active Captives; 31 Dormant Captives
Number of Risk Retention Groups or Group Captives
88 Risk Retention Groups
13 Association Captives
20 Industrial Insured Captives
Number of Single Parent Captives
410 Pure Captives
38 Special Purpose Financial Insurers
Other
2 Affiliated Reinsurance Company
4 Agency
5 Branch
Number of Cell Captives
59 Sponsored Captives (over 500 cells and separate accounts)
Number of licenses granted in the past year (2022 calendar year)
41
Approximate (or Average) length of time to process a new captive
30 days or less upon filing of a completed application for admission
Captive tax rates
Minimum: $7,500, maximum $200,000. $5,000 tax credit for new captives in each of the first two years of licensure
Captives under common ownership and control may be consolidated for premium tax calculation. Direct premium tax rates: 0.38% on the first $20 million; 0.285% on the next $20 million, 0.19% on the next $20 million, 0.072% thereafter.
Assumed premium tax rates: 0.214% on the first $20 million; 0.143% on the next $20 million, 0.048% on the next $20 million, 0.024% thereafter.
Minimum capitalisation rate
Sponsored = $100,000
Pure or Branch = $250,000
Agency, Association or Industrial Insured = $500,000
Risk Retention Group = $1,000,000
Affiliated Reinsurance Company or Special Purpose Financial = $5,000,000
The Commissioner may prescribe additional capital.
Licencing fees
Initial and annual license fee = $500 (all types except SPFIs); SPFIs = $5,000)
Actuarial application review fees = $6,000 (all types except SPFIs); SPFIs = $10,000
Industry sectors best represented in the domicile
12/31/2022 | ||
HEALTHCARE | 111 | |
MANUFACTURING | 102 | |
INSURANCE | 80 | |
CONSTRUCTION | 46 | |
REAL ESTATE | 36 | |
PROFESSIONAL SERVICE | 31 | |
RETAIL | 30 | |
TRANSPORTATION | 30 | |
EDUCATION | 22 | |
ENERGY | 22 | |
RELIGIOUS INSTITUTIONS | 22 | |
OTHER | 18 | |
NONPROFIT OR MUNICIPALITY | 17 | |
BANKING | 15 | |
AGRICULTURE | 9 | |
SECURITIES | 9 | |
COMMUNICATIONS | 8 | |
ENTERTAINMENT | 8 | |
TECHNOLOGY | 8 | |
FINANCING, LENDING, LEASING | 7 | |
WASTE MANAGEMENT | 4 | |
HOTELS | 3 | |
MEDIA | 1 | |
TOTAL CURRENTLY LICENSED | 639 |
Top 5 uses for Captives in the domicile
Property
General Liability
Workers Compensation & Employers Liability
Professional Liability
Auto Liability and Auto Physical Damage
Total premiums received by the Captives (12/31/2021)
$30.1 billion
Total value of assets under management (12/31/2021)
$193.2 billion
Captive Insurance Managers registered to conduct business in the domicile (with number of licensed captives managed by each insurance manager) (as of December 31, 2022, includes active and dormant captives)
|
Brittany Nevins
Captive Insurance Economic Development Director
Department of Economic Development
State of Vermont
Brittany.nevins@vermont.gov
802-398-5192
Sandy Bigglestone
Deputy Commissioner, Captive Insurance
Department of Financial Regulation
State of Vermont
Sandy.bigglestone@vermont.gov
802-828-4854
Christine Brown
Director, Captive Insurance
Department of Financial Regulation
State of Vermont
David.provost@vermont.gov
802-863-3831