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This press release sponsored by:
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Governor Douglas Signs Omnibus Banking Bill Measure Includes Key Provisions For Vermont’s Captive Insurance Sector FOR FURTHER INFORMATION CONTACT:
BURLINGTON, Vt. – Governor Jim Douglas has signed into law a bill making changes to Vermont’s banking and insurance laws, including key provisions for the state’s captive insurance industry.
The bill also includes measures to protect consumers by enabling Vermont to join a national licensing system for mortgage brokers and non-bank lenders.
“Through a collection of thoughtfully rendered statutory changes, this legislation ties together numerous diverse benefits to both consumers and Vermont’s financial services industries, particularly our captive insurance sector,” said Governor Douglas at a signing ceremony at Dwight Asset Management, LLC, in Burlington.
Changes like streamlining the process for merging captive insurance companies and enhancing the laws for “special purpose financial captives” enacted last year will help maintain Vermont’s status as the world’s premier captive insurance domicile by keeping its laws in step with world-wide industry developments and competitive needs.
A captive insurer is a company that is owned or controlled by its policyholders. It offers an option for many corporations and groups that want to take financial control and manage risks by underwriting their own insurance, rather than paying premiums to third-party insurers.
Captive insurance brings clean industry to Vermont that generates millions of dollars in premium taxes to the general fund, according to Banking, Insurance, and Health Care Administration Commissioner Paulette Thabault.
“Through this bill, Vermont continues to polish its ‘gold standard’ regulatory system to ensure the solvency of captives, while recognizing the special purposes for which they were formed,” Thabault said.
For Vermonters looking to take out a home loan in the future, the bill will give added protection against lenders and mortgage brokers who have run afoul of federal or state laws.
In the wake of the subprime crisis nationwide, the new law establishes an important reform in the lending industry by authorizing Vermont to participate in a national licensing system for mortgage brokers and “licensed lenders” (the term for non-bank lenders).
“Participation in the system gives regulators in Vermont access to information about actions other states have taken against a licensee, so we can identify violators and potentially undesirable characters,” Thabault said. “This is an important new tool for us.”
The system also helps the Vermont Banking Division more efficiently administer its own licensing system.
Vermonters eligible for both Medicare and Medicaid, who enjoy the value of In-patient Prepaid Health Plans that help coordinate the benefits of both programs will benefit from prudent changes to regulatory requirements that helps support those organizations.
The bill also cracks down on unlicensed companies or individuals selling illegal or misleading insurance products to Vermonters, it eliminates duplication in the oversight of educational loans, and it brings verification of credit union member accounts in line with national standards.
On the web at: www.bishca.state.vt.us # # # [To More Press Releases] |
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