Vermont Gov. Phil Scott recently signed legislation making several updates to the state’s captive insurance law.
The updates include improving the confidentiality of company information and increasing funding for the operations of the Vermont Captive Insurance Division.
“Vermont continues to be the worldwide leader in the captive insurance market, and this bill makes additional steps to enhance our strong reputation,” Scott said. “The hard work of the Vermont Department of Financial Regulation (DFR) and their partnerships in the industry ensure Vermont continues to see the significant economic benefits that come with our leadership in this sector.”
The new legislation was created with industry input to clarify regulatory expectations and best practices, the DFR said in a news release. The legislation aligns the statute with the information collected when a new company applies for a license and updates the language for how the confidentiality of that information is handled. It also extends that treatment to subsequent updates, approved amendments or revisions to a company’s information, and its plan of operation.
Read next: Captive formation continues to surge
The legislation also updates references, allows for electronic records as an acceptable form of record retention, and amends protected cell naming conventions to include all allowable business types, DFR said.
“Vermont is the gold standard when it comes to captive insurance regulation,” said Sandy Bigglestone, deputy commissioner of captive insurance at DFR. “Captive owners have consistently communicated the need to operate in a jurisdiction with quality regulation because it adds value to their investment in managing their own risk and provides support for the captive operations of the organization.”
“The benefits of the captive insurance industry to Vermont include significant tax and fee revenue that supports the state’s essential programs, green job creation, and tourism revenue from business conducted in the state,” said Brittany Nevins, captive insurance economic development director with Vermont’s Department of Economic Development. “It is necessary on occasion to invest in the program, so it continues to provide this great benefit to Vermonters and captive insurance companies alike.”
Have something to say about this story? Let us know in the comments below.