Updates to Vermont’s branch captive legislation, which requires branch captives to designate the state commissioner of the Department of Financial Regulation as its agent for service of process, have been signed into law.
Governor Phil Scott signed the new legislation into law on 8 March in a move that the Vermont Department of Economic Development said would strengthen Vermont’s captive law in a variety of areas.
The law includes regulatory enhancements for branch captives, as well as the standardisation of the state’s annual filing date for annual reports and premium taxes.
Scott commented: “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.”
He added: “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, said: “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 recognizes the special purpose for which captives are formed.”
Ian Davis, director of financial services at the Vermont Department of Economic Development, added: “We are constantly looking for ways to help improve the ease of doing business in Vermont.”
“This year’s bill included some common-sense changes to our annual filing date and reporting requirements, as well as changes that will help streamline processes and provide an even higher level of consistency for our regulated entities.”