Tag Archives: Captive

Vermont Licensed 33 New Captive Insurance Companies in 2010

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Montpelier, VT (PRWEB) January 12, 2011

The State of Vermont licensed 33 new captive insurance companies in 2010 as it surpassed the 900-license milestone, according to data released by the Vermont Department of Banking, Insurance, Securities and Health Care Administration (BISHCA).

I am extremely proud of the outstanding performance and leadership that Vermont delivers to the captive insurance industry, said Vermont Governor Peter Shumlin. As the new governor of Vermont, I will continue to do whatever is necessary to keep pace with the needs of this important sector.

Vermont reached its 900th license mark in August, when it licensed Lincoln Financial Group. This milestone, combined with 33 new companies licensing captives made for a successful year.

It is very gratifying to see the growth in new licenses in 2010, said Dan Towle, Director of Financial Services. We are continuing to see companies take control of their own risk by forming captive insurance companies, despite the soft commercial insurance market, he added.

The new captives formed include 19 pure captives, nine special purpose financial captives (SPFC), four new risk retention groups, and one industrial insured captive, bringing the total number of licenses issued in Vermont to 911.

The activity in 2010 reflected a wide diversity of lines, with new energy in securitization and healthcare, said David Provost, Deputy Commissioner of BISHCA. The applications were very high quality, and we anticipate continued growth in 2011 — and we are committed to allocating the resources necessary to provide consistent and quality service, he added.

Some of the companies in the class of 2010 include: NBC Universal, Inc., PricewaterhouseCoopers LLP, Aetna Inc., Procter & Gamble Company, Crowe Horwath LLP, Towers Watson & Co. and Nationwide Financial Services, Inc.

Captive insurance companies formed by the healthcare industry to ensure their unique risk continue to be one of Vermonts fastest growing sectors. New healthcare captives in the class of 2010 include those formed by: EmblemHealth Inc., Albert Einstein Healthcare Network, a group of Midwestern Physicians, Nursing Homes & Home Healthcare Agencies, and a group of New Hampshire Hospitals.

Vermont will not rest on its laurels and we remain committed to being the gold standard of domiciles, said Governor Shumlin. Vermont is aggressively pursuing new opportunities to expand the captive industry. While some of our domestic competitors have reduced their commitment to promoting and regulating captives, Vermont is investing in this valuable sector of our economy, Shumlin said.

Vermont is the largest captive insurance domicile in the U.S. and the third largest in the world, with an excess of $ 17 billion in gross written premium estimated in 2010. Vermont is also home to 42 of the companies that make up the Fortune 100, and 18 of the companies that make up the Dow 30 have Vermont captives.

Captive insurance is a regulated form of self insurance that has been around since the 1960s, and has been a part of the Vermont insurance industry since 1981, when Vermont passed the Special Insurer Act. Captive insurance companies are formed by companies or groups of companies as a form of alternative insurance to better manage their own risk. Captives are typically used for corporate lines of insurance such as property, general liability, products liability, or professional liability. Growth sectors of the captive insurance industry include securization, professional medical malpractice coverage for doctors and hospitals, and the continued trend of small and mid-sized companies forming captive insurance companies.

For more information on Vermonts captive industry, please visit http://www.VermontCaptive.com or call Dan Towle at 802-828-5232 or email at dan(dot)towle(at)state(dot)vt(dot)us.

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New Captive Insurance Legislation Proposed for Vermont — Bill to Allow Incorporated Protected Cells

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(PRWEB) March 22, 2011

The proposed bill expands Vermonts captive laws, to include allowing cells within a sponsored cell captive to be formed as incorporated protected cells. Vermont currently allows protected cells created by contract alone. This presents another option for a cell owner in addition to cells created by contract alone, said David Provost, Deputy Commissioner of Vermonts Captive Insurance Division. Weve heard from the captive industry that they wanted the option of having incorporated cells. This legislation does just that, without limiting any rights or protections afforded by cells created by contract.

After a strong 2010 with the licensing of its 900th captive insurance company, the State of Vermont is proposing changes to the Captive Insurance law in the legislature as part of its annual enhancements to its captive statute, according to the Department of Banking, Insurance, Securities and Health Care Administration (BISHCA).

“It is critical that we are responsive to the industry, said Governor Peter Shumlin. Since 1981, when Vermont became a domicile, Governors and Legislatures have united in keeping us the gold standard for regulation of this industry and these proposals are in keeping with that tradition, he added.

The proposed bill, H438, expands Vermonts captive laws, to include allowing cells within a sponsored cell captive to be formed as incorporated protected cells. Vermont currently allows protected cells created by contract alone. This presents another option for a cell owner in addition to cells created by contract alone, said David Provost, Deputy Commissioner of Vermonts Captive Insurance Division. Weve heard from the captive industry that they wanted the option of having incorporated cells. This legislation does just that, without limiting any rights or protections afforded by cells created by contract.

Another component of the legislation will expand the potential types of companies that may be sponsors of cell structures. This change will address the perceived restrictions regarding whom may be a cell owner and will reinforce that the insurance commissioner will have full discretion in deciding who may be a sponsor, said Dan Towle, Vermonts Director of Financial Services.

Another change has been proposed to create greater flexibility within cell structures. This change will eliminate the current restrictions on cell business. Business written by a sponsored captive will no longer be required to have it be fronted, reinsured or secured by a trust. This requirement will now be at the discretion of the commissioner.

“Vermont will continue to license quality companies that may be sponsors of cell structures. Any company that continues to meet our regulatory standards may be a sponsor and companies will now have greater flexibility in their structures and their ownership, said Provost. Vermont currently has 18 sponsored cell captives with approximately 100 individual cells.

Vermont Captive Insurance Company Formations Start Strong — First Quarter Pace Surpasses Vermonts 30 Year Average

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Montpelier, VT (PRWEB) April 21, 2011

Vermont licensed 7 new captives in the first quarter of 2011 which is the strongest start since 2005, according to the Department of Banking, Insurance, Securities and Health Care Administration (BISHCA). The 7 new captives consisted of 4 single-parent, 2 risk retention groups and a special purpose captive.

Were seeing wide diversity in the types of applications, said David Provost, Deputy Commissioner of Vermonts Captive Insurance Division. Captives formed for professional medical liability and smaller to mid-sized companies are trending strongly. The first quarter pace surpasses Vermonts 30-year first quarter average of 5.2 captives.

It is encouraging to see this strong start to 2011, said Governor Peter Shumlin. We will continue to work with the legislature to be responsive to industry needs. Vermont is committed to maintaining its Gold Standard reputation.

Vermont has current captive insurance legislation, H.438, which has passed the House of Representatives and has moved on to the Senate. The proposed legislation will allow for the formation of incorporated protected cell companies and expand its cell legislation, providing more options for companies interested in that structure.

Vermont continues to see an increasing number of smaller and mid-sized companies exploring the captive insurance option, said Dan Towle, Director of Financial Services. This trend exemplifies how Vermont provides a good fit for companies of all sizes. Half of Vermonts captives write less than $ 5 million in gross written premium annually.

Vermont Strengthens Captive Insurance Legislation; New Bill Signed into Law Allows Incorporated Protected Cells

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Montpelier, VT (PRWEB) May 20, 2011

Legislation passed by the 2011 session of the Vermont Legislature and signed into law by Governor Peter Shumlin expands Vermonts captive laws, to include allowing cells within a sponsored cell captive to be formed as incorporated protected cells. The bill was signed into law before a group of industry supporters on May 11.

This bill is testimony to our commitment to keep pace with the changing needs of this industry, said Governor Peter Shumlin. I commend the Legislature for their hard work and commitment to keeping Vermont the gold standard for captive domiciles.

Another change in the new captive insurance law creates greater flexibility within cell structures on business written by a sponsored captive and who can own a sponsored captive. These updates will allow more companies to domicile in Vermont and utilize the option of having incorporated cells. This is accomplished without limiting any rights or protections afforded by cells created by contract, said David Provost, Deputy Commissioner of Vermonts Captive Insurance Division.

Cell owners will now have more options, said Dan Towle, Director of Financial Services. Vermont will continue to license quality companies that may be sponsors of cell structures as long as they meet our regulatory requirements. The new law offers greater flexibility in their structures and ownership. Vermont currently has 18 sponsored cell captives with over 100 individual cells.

The bill also makes permanent the elimination of the first year minimum tax of $ 7,500 for newly licensed captives. It was a way for the Legislature and Governor to say thank you to an industry that has been so beneficial to Vermont, said Richard Smith, President of the Vermont Captive Insurance Association (VCIA). The VCIA was a strong supporter of this legislation and was a partner with the State in its passage.

After a strong 2010 with the licensing of its 900th captive insurance company, the State of Vermont enacted these changes to the Captive Insurance law in the Legislature as part of its annual enhancements to its captive statute, according to the Department of Banking, Insurance, Securities and Health Care Administration (BISHCA).

Vermont is off to its strongest start in years with nine captives licensed thus far with five applications in progress. Vermont is the largest captive insurance domicile in the U.S. and the third largest in the world, with $ 25 billion in gross written premium in 2010. Vermont is also home to captives formed by 42 of the companies that make up the Fortune 100, and 18 of the companies that make up the Dow 30 have Vermont captives.

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Captive insurance is a regulated form of self insurance that has been around since the 1960s, and has been a part of the Vermont insurance industry since 1981, when Vermont passed the Special Insurer Act. Captive insurance companies are formed by companies or groups of companies as a form of alternative insurance to better manage their own risk. Captives are typically used for corporate lines of insurance such as property, general liability, products liability, or professional liability. Growth sectors of the captive insurance industry include securitization, professional medical malpractice coverage for doctors and hospitals, and the continued trend of small and mid-sized companies forming captive insurance companies.

A sponsored captive is a structure created by a sponsor (typically an insurance company or other financial institution) to house individual insurance arrangements called cells. Each cell is created by the insured party, who is usually a customer of the sponsor, to insure its own risk. Such programs are ideal for insured who want to explore the use of a captive without starting their own or to address a short-term insurance issue (captives are considered long-term solutions to long-term issues). In many cases, they serve as incubator space for new captive insurance companies, as the cell owner discovers the benefits of creating their own captive.

An incorporated protected cell is a cell of a sponsored captive that is created under Vermonts corporation laws as a true corporation, as opposed to a cell that is created by contract.

For more information on Vermonts captive industry, please visit http://www.VermontCaptive.com, call Dan Towle at 802-828-5232 or email at dan.towle(at)state(dot)vt.us.

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Vermonts Captive Insurance Industry Celebrates 30th Anniversary. Captive Insurance Law Signed in 1981

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Montpelier, VT (PRWEB) June 08, 2011

The 30th anniversary of the signing of Vermonts captive insurance legislation will be celebrated in Burlington led by Governor Peter Shumlin at a reception in the historic Union Station on Burlingtons waterfront. The event is co-hosted by the State of Vermont and the Vermont Captive Industry Association (VCIA). Former Governor Jim Douglas will also be in attendance for the event.

I am delighted to invite the captive insurance industry to join us in celebrating three decades of service that has resulted in Vermonts leadership position as a domicile, said Governor Shumlin. Governors and legislatures since the signing of the law have come together to support this industry, and I am pleased that former governor Jim Douglas will join me on this special occasion.

Vermonts captive insurance law has been called the gold standard by trade press for its consistency in keeping pace with the changing needs of the industry over the past thirty years and it has been used by other domiciles as a model of regulation. Captive insurance is a regulated form of self insurance that has existed since the 1960s and has been a part of the Vermont insurance industry since 1981, when Vermont passed the Special Insurer Act. Captive insurance companies are formed by companies or groups of companies as a form of alternative insurance to better manage their own risk.

Captives are typically used for corporate lines of insurance such as property, general liability, products liability, or professional liability. Growth sectors of the captive insurance industry include securitization, professional medical malpractice coverage for doctors and hospitals, and the continued trend of small and mid-sized companies forming captive insurance companies.

The 30th anniversary Vermont captive insurance event will be held on Wednesday, June 22 from 4:30 to 6:30 p.m. in downtown Burlington’s historic Union Station. Sponsors of the event include Primmer Piper Eggleston & Cramer PC, Paul Frank + Collins Attorneys at Law, and Downs Rachlin Martin PLLC.

Vermont is the largest captive insurance domicile in the U.S. and the third largest in the world, with an excess of $ 25 billion in gross written premium in 2010. Vermont is also home to 42 of the companies that make up the Fortune 100 and 18 of the companies that make up the Dow 30.

For more information on Vermonts captive industry, visit VermontCaptive.com or call Dan Towle at 802-828-5232 or email Dan.Towle(at)state(dot)vt(dot)us.

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Nonadmitted and Reinsurance Reform Act: No Captive Insurance Impact; Consortium Agrees with White Paper Conclusions

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Montpelier, Vermont (PRWEB) October 14, 2011

The new federal Nonadmitted and Reinsurance Reform Act (NRRA), often referred to as the Dodd Frank Act, has no applicability to captive insurance. That is the conclusion of an independent white paper prepared for the Vermont Captive Insurance Association (VCIA) by the law firm of McIntyre and Lemon, PLLC of Washington, DC.

Both the language of the legislation itself and the legislative intent are clear that the law was meant to apply only to the surplus lines market not captive insurance, said Dave Provost, Deputy Commissioner of Captive Insurance.

A consortium of the VCIA, the Captive Insurance Companies Association and the National Risk Retention Association agreed with the conclusion of the white paper. There was no intent to have NRRA encompass captive insurance, said Rich Smith, President of the Vermont Captive Insurance Association.

“There is a good deal of misinformation that is being disseminated to captive insurance companies, said Dan Towle, Vermonts Director of Financial Services. This does a disservice to the captive insurer and to the industry.

The white paper went to great lengths to analyze Congressional legislative intent, quoting from the chief bill sponsors as to the focus of the bill being surplus lines of insurance. Based on this analysis and the language of the NRRA itself, the white paper concludes both that (1) captive insurers should not be subject to the NRRAs nonadmitted insurance provisions because they are not placing nonadmitted insurance within the meaning of the NRRA and (2) the NRRA did not change the application of state independently procured insurance laws, nor should it restrict the collection of premium taxes paid for independently procured insurance to the home state of the insured, as it does for nonadmitted insurance. The white paper can be read in its entirety at http://www.VermontCaptive.com/DoddFrank.

It is prudent for captive insurance companies to seek counsel from their attorneys, tax advisors and captive managers if they have questions on the applicability of self procurement taxes, said Towle. Generally speaking, if you have been advised that self procurement taxes were not applicable before the NRRA, they would not be applicable now. The NRRA itself did not create any new taxes.

Captive insurance is a regulated form of self insurance that has been around since the 1960s, and has been a part of the Vermont insurance industry since 1981, when Vermont passed the Special Insurer Act. Captive insurance companies are formed by companies or groups of companies as a form of alternative insurance to better manage their own risk. Captives are typically used for corporate lines of insurance such as property, general liability, products liability, or professional liability. Growth sectors of the captive insurance industry include securitization, professional medical malpractice coverage for doctors and hospitals, and the continued trend of small and mid-sized companies forming captive insurance companies.

For more information on Vermonts captive industry, visit http://www.vermontcaptive.com or call Dan Towle at 802-828-5232 or email dan(dot)towle(at)state(dot)vt(dot)us.

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Captive Insurance Industry Experts Continue to Weigh In on Nonadmitted and Reinsurance Reform Act: No Captive Insurance Impact

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Montpelier, VT (PRWEB) November 08, 2011

The McIntyre White Paper Report on the new federal Nonadmitted and Reinsurance Reform Act (NRRA), part of the recently passed Dodd Frank Act, continues to garner agreement among captive insurance industry experts concluding that the law has no applicability to captive insurance. The white paper was prepared by the law firm of McIntyre and Lemon, PLLC of Washington, DC.

The McIntyre Report gives a convincing explanation of why captive insurance is not part of NRRA, said Tom Jones, partner with McDermott Will & Emery LLP in Chicago. The intent of NRRA appears to have been solely on surplus lines and never meant to include captive insurance, he added.

Skip Myers is the Managing Partner with Morris Manning & Martin, LLP in Washington, DC, Although this legislation was intended by Congress to create uniformity in the surplus lines market, the actions of the states have had the opposite effect. The legislative history is clear that Congress never intended this legislation to affect any insurance other than surplus lines, said Myers.

There is considerable misinformation circulating regarding NRRA, said Daniel Towle, Vermonts Director of Financial Services. Certain states are using this as an opportunity to try to domicile captives in their state. It is a disservice to the industry that some states are using this tactic in an attempt to leverage new business. We strongly recommend seeking factual documentation for such assertions to avoid costly and unnecessary consequences.

As legal experts weigh in on NRRA, industry accountants are now voicing their professional assessment on the laws application to captive insurance. We dont believe it applies to captive insurers. We are advising clients to sit tight as further guidance will be forthcoming, said Gary Bowers, CPA, and Tax Partner with Johnson Lambert & Company LLP. Bowers goes on to state, Captives are not surplus lines writers, and we believe NRRA was intended to only affect surplus lines writers.

We concur with the reasoning and conclusion reached in the McIntyre White Paper that NRRA should not apply to captive insurance companies, said Dan Kusaila, CPA, and Tax Partner with Saslow Lufkin & Buggy, LLP. NRRA did not create any new taxes and we are recommending a wait and see approach to our clients, said Kusaila.

The McIntyre White Paper went to great lengths to analyze Congressional legislative intent, concluding that the focus of the bill was for surplus lines of insurance. Based on this analysis and the language of the NRRA itself, the white paper concludes both that (1) captive insurers should not be subject to the NRRAs nonadmitted insurance provisions because they are not placing nonadmitted insurance within the meaning of the NRRA and (2) the NRRA did not change the application of state independently procured insurance laws, nor should it restrict the collection of premium taxes paid for independently procured insurance to the home state of the insured, as it does for nonadmitted insurance. The white paper can be read in its entirety at http://www.VermontCaptive.com/DoddFrank.

A consortium of the Vermont Captive Insurance Association, the Captive Insurance Companies Association and the National Risk Retention Association also agreed with the McIntyre White Paper.

Captive insurance is a regulated form of self insurance that has existed since the 1960s, and has been a part of the Vermont insurance industry since 1981, when Vermont passed the Special Insurer Act. Captive insurance companies are formed by companies or groups of companies as a form of alternative insurance to better manage their own risk. Captives are typically used for corporate lines of insurance such as property, general liability, products liability, or professional liability. Growth sectors of the captive insurance industry include securitization, professional medical malpractice coverage for doctors and hospitals, and the continued trend of small and mid-sized companies forming captive insurance companies.

For more information on Vermonts captive industry, visit http://www.vermontcaptive.com or call Dan Towle at 802-828-5232 or email dan(dot)towle(at)state(dot)vt(dot)us.

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Captive Insurance Industry Experts Continue to Weigh In on Nonadmitted and Reinsurance Reform Act: No Captive Insurance Impact

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Montpelier, VT (PRWEB) November 08, 2011

The McIntyre White Paper Report on the new federal Nonadmitted and Reinsurance Reform Act (NRRA), part of the recently passed Dodd Frank Act, continues to garner agreement among captive insurance industry experts concluding that the law has no applicability to captive insurance. The white paper was prepared by the law firm of McIntyre and Lemon, PLLC of Washington, DC.

The McIntyre Report gives a convincing explanation of why captive insurance is not part of NRRA, said Tom Jones, partner with McDermott Will & Emery LLP in Chicago. The intent of NRRA appears to have been solely on surplus lines and never meant to include captive insurance, he added.

Skip Myers is the Managing Partner with Morris Manning & Martin, LLP in Washington, DC, Although this legislation was intended by Congress to create uniformity in the surplus lines market, the actions of the states have had the opposite effect. The legislative history is clear that Congress never intended this legislation to affect any insurance other than surplus lines, said Myers.

There is considerable misinformation circulating regarding NRRA, said Daniel Towle, Vermonts Director of Financial Services. Certain states are using this as an opportunity to try to domicile captives in their state. It is a disservice to the industry that some states are using this tactic in an attempt to leverage new business. We strongly recommend seeking factual documentation for such assertions to avoid costly and unnecessary consequences.

As legal experts weigh in on NRRA, industry accountants are now voicing their professional assessment on the laws application to captive insurance. We dont believe it applies to captive insurers. We are advising clients to sit tight as further guidance will be forthcoming, said Gary Bowers, CPA, and Tax Partner with Johnson Lambert & Company LLP. Bowers goes on to state, Captives are not surplus lines writers, and we believe NRRA was intended to only affect surplus lines writers.

We concur with the reasoning and conclusion reached in the McIntyre White Paper that NRRA should not apply to captive insurance companies, said Dan Kusaila, CPA, and Tax Partner with Saslow Lufkin & Buggy, LLP. NRRA did not create any new taxes and we are recommending a wait and see approach to our clients, said Kusaila.

The McIntyre White Paper went to great lengths to analyze Congressional legislative intent, concluding that the focus of the bill was for surplus lines of insurance. Based on this analysis and the language of the NRRA itself, the white paper concludes both that (1) captive insurers should not be subject to the NRRAs nonadmitted insurance provisions because they are not placing nonadmitted insurance within the meaning of the NRRA and (2) the NRRA did not change the application of state independently procured insurance laws, nor should it restrict the collection of premium taxes paid for independently procured insurance to the home state of the insured, as it does for nonadmitted insurance. The white paper can be read in its entirety at http://www.VermontCaptive.com/DoddFrank.

A consortium of the Vermont Captive Insurance Association, the Captive Insurance Companies Association and the National Risk Retention Association also agreed with the McIntyre White Paper.

Captive insurance is a regulated form of self insurance that has existed since the 1960s, and has been a part of the Vermont insurance industry since 1981, when Vermont passed the Special Insurer Act. Captive insurance companies are formed by companies or groups of companies as a form of alternative insurance to better manage their own risk. Captives are typically used for corporate lines of insurance such as property, general liability, products liability, or professional liability. Growth sectors of the captive insurance industry include securitization, professional medical malpractice coverage for doctors and hospitals, and the continued trend of small and mid-sized companies forming captive insurance companies.

For more information on Vermonts captive industry, visit http://www.vermontcaptive.com or call Dan Towle at 802-828-5232 or email dan(dot)towle(at)state(dot)vt(dot)us.

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2011 Very Strong for Vermont Captive Insurance Licenses

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Monteplier, VT (PRWEB) January 10, 2012

2011 was the 6th year Vermont Captive surpassed the 40 new captives licensed mark with 41 new captive insurance companies bringing the total number of licenses to 952, according to data released by the Vermont Banking, Insurance, Securities and Health Care Administration (BISHCA).

Thirty were single parent captives, with six risk retention groups (RRG), three sponsored, one industrial insured, and one association. 2011s new captive insurance licensees brings Vermont overall total to 952 with 590 active captive insurance companies.

One of the most exciting aspects of 2011 and a perennial key to our success is the high quality of companies that we are privileged to work with, said David Provost, Vermonts Deputy Commissioner of Captive Insurance. Were also seeing the States continued investment in staff helping us continue to provide outstanding customer service. Thats very much a part of what keeps Vermont the Gold Standard.

Despite the soft market each quarter of 2011 had steady growth. This strong year is testimony to our continued commitment to maintain Vermonts reputation as the Gold Standard of domiciles, said Governor Peter Shumlin. While other states continue to falter, Vermonts stability and support has never wavered. We will continue to address the needs of the industry going forward and will not rest on our laurels.

The top industries licensing captives in the past year in Vermont were insurance, hospitals and medical groups and manufacturing. Vermont was also busy with activity in risk retention groups which continue to be a growth sector.

Vermont is the leader in RRGs and that trend has been a constant. Another area of growth has been in redomestications of existing captives from other states and jurisdictions. We continue to hear that Vermont provides the greatest value for your captive insurance company, said Daniel Towle, Director of Financial Services.

As 2012 begins, two new captives have been licensed and there are already four applications pending according to Towle. The overall market may be soft, but it is also very dynamic and we expect good things to come from 2012.

Captive insurance is a regulated form of self insurance that has been around since the 1960s, and has been a part of the Vermont insurance industry since 1981, when Vermont passed the Special Insurer Act. Captive insurance companies are formed by companies or groups of companies as a form of alternative insurance to better manage their own risk. Captives are typically used for corporate lines of insurance such as property, general liability, products liability, or professional liability. Growth sectors of the captive insurance industry include securitization, professional medical malpractice coverage for doctors and hospitals, and the continued trend of small and mid-sized companies forming captive insurance companies.

For more information on Vermonts captive industry, visit http://www.vermontcaptive.com, call Dan Towle at 802-828-5232 or email dan(dot)towle(at)state(dot)vt(dot)us.

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The Point out of Vermont Announces: 2012 Steady for New Vermont Captive Insurance policy Formations, Design and Producing Captives are Trending Strongly

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Montpelier, VT (PRWEB) January sixteen, 2013

The Point out of Vermont accredited 32 new captives in 2012 finishing with robust showings by the construction and producing sectors which each and every experienced five new licensees, in accordance to knowledge released by the Vermont Captive Insurance policies Division. Governor Peter Shumlin shared the final results in the course of the Vermont Captive Insurance coverage Associations Legislative Day, where he was joined by proprietors of captive insurance policies firms from throughout the country, govt officers and provider suppliers.

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Have been really delighted with the outcomes for 2012, said Governor Shumlin. We will stay dedicated to preserving Vermonts captive management part in 2013 with a priority on clarifying the ambiguities in the federal Dodd-Frank laws which have induced undue confusion for the captive insurance coverage market.

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“The high quality of the new captive insurance policies firms more than the previous yr has been outstanding, explained David Provost, Vermonts Deputy Commissioner of Captive Insurance policy. 28 of the 32 ended up pure captives, an very higher percentage of the overall whole for 2012, he added.

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Vermont licensed forty one captives in 2011. In addition to the 28 pure captives, a few have been sponsored and there was 1 threat retention team in the earlier calendar year.

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Some of the notables in the newly accredited captives consist of Deutsche Lender, Conoco Philips, Tyco, and Allstate. Another continued craze in 2012 was the sturdy presence of the non-revenue with new formations.

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The health care and religious group activity was quite sturdy in 2012, explained Dan Towle, Vermonts Director of Fiscal Companies. That pattern has ongoing with two newly certified captives in 2013 both getting in the health care sector.

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2012s new licensees brings Vermont general whole to 984 with 588 energetic captive insurance policy businesses. 2013 is starting up strongly with two new captives certified, with an active pipeline of possible captive insurance coverage organizations.

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Captive insurance policies is a controlled kind of self insurance policies that has been around because the 1960s, and has been a element of the Vermont insurance policies industry since 1981, when Vermont handed the Specific Insurance company Act. Captive insurance coverage organizations are formed by firms or teams of firms as a sort of different insurance policies to much better deal with their personal risk. Captives are generally utilised for company lines of insurance policies such as residence, common legal responsibility, merchandise legal responsibility, or professional liability. Progress sectors of the captive insurance sector include securitization, professional health care malpractice coverage for medical doctors and hospitals, and the ongoing development of little and mid-sized firms forming captive insurance policy businesses.

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For much more details on Vermonts captive insurance policy sector, check out VermontCaptive.com or call Dan Towle at 802-828-5232 or e-mail Dan.Towle(at)Condition(dot)vt(dot)us.

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