New legislation updating Vermont’s captive law will make the domicile more attractive to healthcare providers. That is the view of the deputy commissioner of Vermont’s captive division David Provost, who worked with the legislature on the new changes.
“This legislation updates several components in our law to keep Vermont at the forefront of domiciles,” said Provost. “The updates to our reciprocal law will make it more attractive than ever for educational institutions, healthcare providers and other not-for-profit organizations to domicile in Vermont.”
The new legislation has created a new “dormant” status for captives. The dormant status establishes an efficient mechanism for a captive that has ceased insurance operations to cost-effectively retain its license should it elect to resume operations in the future. The law takes effect immediately.
“I’m proud to sign this bill in response to the industry’s desire to have more options for their captives,” said Governor Shumlin, who signed the legislation. “I commend the Legislature in continuing our long tradition of making sure our captive regulations are the industry gold standard.”
“We’re delighted that once again the governor and legislature have joined together to respond to the rapidly changing environment for captives,” added Dan Towle, Vermont’s director of financial services. “It is just one of the many benefits to domiciling in a proactive jurisdiction like Vermont.”
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