Vermont Governor Peter Shumlin has signed the state’s latest captive bill into law.
The Vermont House and Senate passed the captive bill earlier this month, paving way for Shumlin to sign off the on the changes on 13 April.
The new captive bill, known as H538, allows sponsored and association captives to file reports on a fiscal year-end. Currently, many sponsored captives are only open to affiliated, while association captives are limited to members of the association. In these cases, it is appropriate to allow the captive’s year to match the owner/insured’s.
The bill also allows sponsored and industrial insured captives to enter dormant status, allowing them to waive premium taxes but stay in Vermont, ready to be reactivated.
Protected cells, meanwhile, are now allowed free movement, meaning they can move to a different sponsored captive or be converted into an incorporate cell or separate captive.
Finally, some minor adjustments have been made to risk retention group governance standards, which passed in the last bill, to clarify the rules for easier implementation.
