Tag Archives: Protected

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

Posted on by


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

Posted on by


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.

Get to Know Captive Insurance

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.

###







More Securitization Press Releases

Protected Safety Enters Do-it-yourself House Security Industry with Safe@house

Posted on by


San Ramon, CA (PRWEB) February 13, 2013

Safe Stability, a single of the nations greatest safety alarm businesses has introduced a new division, Protected@home. This new division will empower a customer to self put in a wi-fi stability system at their residence with simplicity. This Do it yourself residence alarm program will contain skilled UL accredited 5 Diamond checking by Risk-free Safety and will not require a phone line. The home security technique can be controlled remotely by a smartphone or pill through Honeywells Complete Join. The technique is offered across the continental US.

&#13

With an elevated demand from customers in the residential stability market for a self mounted alarm method coupled with improved technological innovation that makes it possible for for a wi-fi protection program to be set up in minutes, Protected@residence is well positioned to be a chief in the Diy security room, stated Paul Sargenti, SAFEs President and CEO. Weve partnered with Honeywell to offer a state of the artwork wireless safety system and will accommodate Wi-Fi for IP alarm communications. This will permit our clients to consider gain of currently being ready to self-set up their wireless safety technique. By enabling our clients to self put in, they will help save money by not demanding an alarm company to set up the alarm system.

&#13

Buyers can decide on from 3 complete deals and insert on additional components to best match their wants. Risk-free@home is doing work with the chief in security, Honeywell, to provide reducing edge tools.

&#thirteen

The Risk-free@residence Do it yourself wireless property security program is obtainable now. To discover far more make sure you go to http://www.safeathome4u.com.

&#13

About Safe Securit&#thirteen

Secure Security