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18th of May 2012

Vermont proposes changes to RRGs and sponsored cells

Vicky Beckett 28/11/2011

Vermont’s department of insurance is requesting to change three pieces of captive legislation.
 
The department annually compiles a ‘housekeeping bill’ with a list of minor changes to existing statutes that help clarify any grey areas,  and keep captive statute up to date. 
 
This year’s bill proposes that sponsored cell legislation will specifically include some corporate forms for incorporated cells.
 
David Provost, deputy commissioner of captive insurance for Vermont department of insurance, said that the regulators have requested RRGs are allowed to cede insurance to a cell (in with the new reinsurance guidelines).
 
The Commissioner has requested specific authority to limit the risk retained by an RRG.
 
Vermont department of Insurance is due to present its legislative bill to the state authorities.

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