VERMONT AMENDS ITS CAPTIVE INSURER LAW
Vermont has amended its captive insurer statute (H. 563) to permit a company to elect a “dormant captive insurance company” status for a period of five years (renewable) if it meets certain criteria: (1) unimpaired, paid-in capital and surplus of not less than $25,000; (2) submission of a prescribed annual report; and (3) payment of a license renewal fee. Dormant companies are those which: (1) do not insure controlled unaffiliated business; (2) have ceased transacting the business of insurance (including the issuance of insurance policies); and (3) have no remaining liabilities associated with insurance business transactions or outstanding insurance policies. Dormant companies are not liable for certain premium taxes.
This post written by Rollie Goss.
