The Vermont Legislature recently approved S. 42 (the “Bill”). The Bill proposes several amendments to Vermont’s Insurance Laws, including:
- Market Conduct Filing Requirement. At the discretion of the Commissioner of the Vermont Department of Banking, Insurance, Securities and Health Care Administration, domestic, foreign and alien insurance companies doing business in Vermont must submit an annual statement of market conduct performance.
- Change in Accounting Standards for Captive Insurance Companies. The Commissioner may allow captive insurance companies and special purpose captive insurance companies to use “other comprehensive basis of accounting” standards in their annual reports. Previously, generally accepted accounting principles or standard accounting principles were required.
- Premium Tax Credit for New Captive Insurance Companies. Captive insurance companies licensed in Vermont from January 1, 2009 to December 31, 2010 will receive a one-time $7,500 credit to offset against premium taxes.
- Conversion of Protected Cells into Captive Insurance Companies. In the event of insolvency of a sponsored captive insurance company, the Commissioner may separate one or more protected cells from the insolvent captive insurance company, and, upon application from the captive sponsor, allow for the conversion of such protected cells into a captive insurance company.
The Bill awaits execution by Vermont Governor Jim Douglas.