§ 6001. Definitions As used in this chapter, unless the context requires otherwise: (1) “Affiliated company” means any company in the same corporate system as a parent, an industrial insured, or a member organization by virtue of common ownership, control, operation, or management. (2) “Agency captive insurance company” means a captive insurance company that is […]
§ 6002. Licensing; authority (a) Any captive insurance company, when permitted by its articles of association, charter, or other organizational document, may apply to the Commissioner for a license to do any and all insurance comprised in subdivisions 3301(a)(1), (2), (3)(A)-(C), (E)-(Q), and (4)-(9) of this title and may grant annuity contracts as defined in […]
§ 6003. Names of companies No captive insurance company shall adopt a name that is the same, deceptively similar, or likely to be confused with or mistaken for any other existing business name registered in the State of Vermont. (Added 1981, No. 28.)
§ 6004. Minimum capital and surplus; letter of credit (a) Prior to issuing any policies of insurance or entering into any contracts of reinsurance, each captive insurance company shall possess and thereafter maintain unimpaired paid-in capital and surplus of: (1) in the case of a pure captive insurance company, not less than $250,000.00; (2) in […]
§ 6005. Dividends No captive insurance company may pay a dividend out of, or other distribution with respect to, capital or surplus without the prior approval of the Commissioner. Approval of an ongoing plan for the payment of dividends or other distributions shall be conditioned upon the retention, at the time of each payment, of […]
§ 6006. Formation of captive insurance companies in this State (a) Subject to the approval of the Commissioner, a captive insurance company may be formed as any type of entity permissible under Vermont law. (b)-(c) [Repealed.] (d) A captive insurance company incorporated or organized in this State shall have one or more incorporators or one […]
§ 6006a. Mergers (a) Any captive insurance company meeting the qualifications set forth in subdivision 6006(j)(1) of this title may merge with any other insurer, whether licensed in this State or elsewhere, in the following manner: (1) The board of directors of each insurer shall, by a resolution adopted by a majority vote of the […]
§ 6006b. Redomestication (a) Any foreign or alien insurer that qualifies for licensure as a captive insurance company in this State may redomesticate to this State by complying with all of the requirements of law relative to the organization and licensing of a captive insurance company and by filing with the Secretary of State its […]
§ 6007. Reports and statements (a) Captive insurance companies shall not be required to make any annual report except as provided in this chapter. (b) Prior to March 1 of each year, and prior to March 15 of each year in the case of pure captive insurance companies, association captive insurance companies, sponsored captive insurance […]
§ 6008. Examinations and investigations (a) Whenever the Commissioner determines it to be prudent, but not less frequently than once every five years, the Commissioner shall personally, or by some competent person appointed by the Commissioner, inspect and examine each captive insurance company to ascertain its financial condition, its ability to fulfill its obligations, and […]
§ 6009. Grounds and procedures for suspension or revocation of license (a) The license of a captive insurance company may be suspended or revoked by the Commissioner for any of the following reasons: (1) insolvency or impairment of capital or surplus; (2) Failure to meet the requirements of section 6004 of this title; (3) refusal […]
§ 6010. Legal investments (a)(1) Except as may be otherwise authorized by the Commissioner, agency captive insurance companies, association captive insurance companies, sponsored captive insurance companies, protected cells in sponsored captive insurance companies, and risk retention groups shall: (A) comply with the investment requirements contained in sections 3461 through 3472 of this title, as applicable; […]
§ 6011. Reinsurance (a) Any captive insurance company may provide reinsurance, comprised in subsection 3301(a) of this title, on risks ceded by any other insurer, and may provide reinsurance of annuity contracts as defined in section 3717 of this title that are granted by any other insurer. (b) Any captive insurance company may take credit […]
§ 6012. Rating organizations; memberships No captive insurance company shall be required to join a rating organization. (Added 1981, No. 28.)
§ 6013. Exemption from compulsory associations No captive insurance company shall be permitted to join or contribute financially to any plan, pool, association, or guaranty or insolvency fund in this State, nor shall any such captive insurance company, or any insured or affiliate thereof, receive any benefit from any such plan, pool, association, or guaranty […]
§ 6014. Tax on premiums collected (a) Each captive insurance company shall pay to the Commissioner of Taxes on or before March 15 of each year a tax at the rate of 38-hundredths of one percent on the first 20 million dollars and 285-thousandths of one percent on the next 20 million dollars and 19-hundredths […]
§ 6015. Rules and regulations The Commissioner may adopt and from time to time amend such rules relating to captive insurance companies as are necessary to enable the Commissioner to carry out the provisions of this chapter. (Added 1981, No. 28; amended 2003, No. 55, § 7.)
§ 6016. Laws applicable No provisions of this title, other than those contained in this chapter or contained in specific references contained in this chapter, shall apply to captive insurance companies. Risk retention groups shall have the privileges and be subject to the provisions of chapter 142 of this title in addition to the applicable […]
§ 6017. Captive Insurance Regulatory and Supervision Fund (a)(1) There is hereby created a fund to be known as the Captive Insurance Regulatory and Supervision Fund for the purpose of providing the financial means for the Commissioner of Financial Regulation to administer this chapter, chapter 142, and chapter 142A of this title and for reasonable […]
§ 6018. Delinquency Except as otherwise provided in this chapter, the terms and conditions set forth in chapter 145 of this title shall apply in full to captive insurance companies formed or licensed under this chapter; however, the assets of a separate account established under subsection 6006(q) of this chapter shall not be used to […]
