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The Vermont General Assembly has passed the H.659 bill to Governor Phil Scott, which seeks to make various amendments to the legislation relating to captive insurance.
The bill provides an update to the state’s cell legislation, enabling a captive insurance company to be converted into an unincorporated cell, with all of its assets, rights, benefits, obligations and liabilities, remaining unaffected by the process.
The proposed legislation also lowers the minimum capital requirement for an agency captive insurance company from US$500,000 to US$250,000.
It simplifies state confidentiality and information sharing, as well as giving regulators more flexibility in sharing and reporting captive information.
The bill also modifies the language concerning parametric policies to clearly allow captives to write parametric insurance contracts.
Every year, the Vermont Captive Insurance Association collaborates with the Department of Financial Regulation to put forward a captive bill based on industry feedback to update Vermont's laws in order to keep pace with the industry's needs.
