The Captive Insurance Division of the Vermont Department of Banking, Insurance, Securities and Health Care Administration is proposing changes to its captive insurance law through bill H438. H438 would, among other things, allow cells within a sponsored cell captive to form as incorporated protected cells. The bill defines an incorporated protected cell as “a cell that is established as a corporation or limited liability company separate from the sponsored captive insurance company of which it is a part.” The existing Vermont law permits protected cells that are created by contract. If the proposed amendment is enacted, cell owners would have the option of having incorporated cells, and such cells would be afforded the same rights and protections available to cells created by contract. The bill would also make permanent a first year premium tax credit that new Vermont captives have received for the past 18 months.

Click here to view a copy of the bill.