ACT NO. 55
This act recodifies and amends sections of the law relating to the regulation of captive insurance, which is insurance written by insurance companies owned and controlled by their insured. Vermont has been an important domicile for captive insurers since 1981, and this act updates and clarifies the existing statutes to conform with the current structure of the industry. This act also modifies the current tax on premiums written by captive insurers. The minimum tax is raised, a maximum is established, and the rate is reduced. Nonprofits are allowed to organize captives. Alien insurers are authorized to merge with Vermont captives.
Effective Date: This act generally takes effect July 1, 2003; however, certain portions take effect from passage, June 4, 2003, and certain portions take effect June 30, 2003 and January, 1, 2004.