Vermont's 2024 Captive Bill Seeks Several Revisions to Existing Law

A draft of Vermont's 2024 captive insurance bill is taking shape, offering a number of potential revisions to the state's existing captive law, Vermont Captive Insurance Association (VCIA) President Kevin Mead said in a recent blog post.

Among the provisions in the draft bill are clarifications of the redomestication of protected cells and conversions of other entities into protected cells, the post said. In addition, the draft bill would amend language around parametric risk contracts, adopting a more permissive structure based on recent legal and practice changes.

Another proposed change would reduce the minimum capital requirement for agency captives from $500,000 to $250,000, Mr. Mead's post said. "Of course, these are the statutory requirements, with actual minimum capital being established in the application and licensure process," the VCIA president wrote. "I imagine this will be of interest to many prospective captive companies."

As in past years, the VCIA—and, in particular, its Legislative Committee—has worked closely with the Vermont Department of Financial Regulation and other interested parties in crafting the draft legislation, Mr. Mead said. "Each year, we take this responsibility very seriously, incorporating feedback from many stakeholders in order to form an effective captive bill for the upcoming year," he said.