Vermont signs law to enhances branch captive regulations

Vermont Governor Phil Scott has signed new captive insurance legislation which aims to strengthen Vermont’s captive law in a variety of areas.

The law includes regulatory enhancements for branch captives, as well as standardising the state’s annual filing date for annual reports and premium taxes.

The law was passed by Vermont’s general assembly in the first part of the 2018 legislative session.

"It is critical that we are responsive to the needs of the industry. These improvements to our captive legislation illustrate Vermont's ongoing commitment to the captive insurance industry, which has been an economic boon for the state," stated Scott. "This bill will further advance Vermont's reputation as the 'Gold Standard' of domiciles and will provide greater flexibility and consistency for our companies going forward."

David Provost, deputy commissioner of Vermont’s captive insurance division, added: "As we do every year, we work with the Vermont Captive Insurance Association and the Department of Economic Development to develop a consensus bill that helps enhance our laws while maintaining prudent regulatory standards.

"The legislative process ensures our captive law meets the needs of businesses within a regulatory framework that recognises the special purpose for which captives are formed.”