Vermont Captive Insurance Legislative Agenda to be Signed into Law – Vermont Governor to Hold Ceremonial Signing with Industry
Governor
"These improvements in
Expanding the investment guidelines for the minimum capital requirement is a significant change that has already attracted considerable interest. This change is consistent with current investment guidelines for
"The legislation makes
"We're delighted to have the continued support of the Governor and
The new law also modifies the minimum capital for cell companies to
A summary of the changes in the law include the following:
Number of Incorporators – The number of incorporators was reduced from 3 to 1 to be consistent with most other incorporations under
Cell Companies Capital Requirements -- The change reduces the minimum capital requirement from
Structure on Capital Requirement for all Captive Companies – The new law allows captives to have greater flexibility with their required minimum capital to now include marketable securities along with allowing cash, trust and letters of credit to meet the minimum capital requirement. The Department will issue further guidance to define "marketable securities".
Definitions and Protected Cells -- The law amends the sponsored cell law to make it easier to read by moving sections of the law to improve clarity.
Naming Conventions for Incorporated Cells -- The law adds a requirement that incorporated protected cells have their own distinct names and designations, which in the case of incorporated protected cells should include the words 'Incorporated Cell' or the abbreviation 'IC'.
Delinquency of Sponsored Captives and Adoption of the NAIC Protected Cell Company Model Act –
RRG Governance --
A complete copy of the bill as passed with amendments can be found at: http://www.vermontcaptive.com/laws-regulations/laws.
The law takes effect upon passage, except the governance standards applicable to risk retention groups shall apply to risk retention groups first licensed on or after the effective date of this act, and shall apply to all other risk retention groups one year after the effective date of this act (giving existing companies 1 year to come into compliance).
Captive insurance is a regulated form of self-insurance that has existed since the 1960's, and has been a part of the
Read the full story at http://www.prweb.com/releases/New2015/Legislation/prweb12702965.htm
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