Vermont Gov. Phil Scott (pictured above) has signed H.137 into law, advancing regulatory updates for the state’s insurance industry, including provisions specific to captive insurers.
The legislation, referred to as the Department of Financial Regulation’s (DFR) 2025 housekeeping bill, was developed with input from the Vermont Captive Insurance Association (VCIA) and other industry stakeholders.
Scott said maintaining Vermont’s standing in the captive insurance sector requires continual modernization of the regulatory framework.
“By working collaboratively with industry partners and the legislature, Vermont maintains its strong reputation in this sector and continues to be a place where companies choose to conduct business in,” Scott said.
Among the updates in H.137 is language aligning the captive licensing process more directly with Vermont’s broader insurance statutes through a reference to Title 8, Section 3301.
The bill also clarifies the signing authority of individuals in manager-managed limited liability companies and introduces provisions related to mutual insurers. Additional amendments address operations of captives acting as reinsurance companies.
DFR Commissioner Kaj Samsom said Vermont’s reputation as a leading captive domicile is supported by a regulatory structure that balances oversight and collaboration.
“It’s clear that Vermont’s strength as a global leader is due to our regulatory framework, and the DFR’s ability to work effectively with the robust network of service providers who have built a strong foundation for success in the industry,” Samsom said.
This year marks the VCIA’s 40th anniversary. The association plans to commemorate the milestone at its annual conference in August, which will be held in Burlington.
Elsewhere in captives, Montana also announced that it will shift from a flat-rate tax structure to a tiered premium tax system for captive insurance companies following the signing of new legislation by Gov. Greg Gianforte.
The law also introduces a minimum annual tax and expands tax provisions for reinsurance premiums.
What are your thoughts on this story? Please feel free to share your comments below.