Vt. Stat. tit. 8 § 6004

Current through L. 2024, c. 185.

Section 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 the case of an association captive insurance company, not less than $500,000.00;

(3) in the case of an industrial insured captive insurance company, not less than $500,000.00;

(4) in the case of an agency captive insurance company, not less than $250,000.00;

(5) in the case of a risk retention group, not less than $1,000,000.00; and

(6) in the case of a sponsored captive insurance company, not less than $100,000.00.

(b) The Commissioner may prescribe additional capital and surplus based upon the type, volume, and nature of insurance business transacted.

(c) Capital and surplus may be in the form of cash, marketable securities, a trust approved by the Commissioner and of which the Commissioner is the sole beneficiary, or an irrevocable letter of credit issued by a bank approved by the Commissioner. The Commissioner may reduce or waive the capital and surplus amounts required by this section pursuant to a plan of dissolution for the company approved by the Commissioner.

(d) Within 30 days after commencing business, each captive insurance company shall file with the Commissioner a statement under oath of its president and secretary certifying that the captive insurance company possessed the requisite unimpaired paid-in capital and surplus prior to commencing business.

8 V.S.A. § 6004

Amended by 2024, No. 110,§ 4, eff. 7/1/2024.

Amended by 2021 , No. 25, § 22, eff. 5/12/2021.

Added 1981, No. 28; amended 1993, No. 40, § 3, eff. 6/3/1993; 1993, No. 235 (Adj. Sess.), § 9d; 1999, No. 38 , § 6, eff. 5/20/1999; 2003, No. 55, § 7; 2007, No. 178 (Adj. Sess.), § 5; 2009 , No. 137 (Adj. Sess.) , § 18, eff. 5/29/2010; 2011, No. 78 (Adj. Sess.), § 37, eff. 4/2/2012; 2015 , No. 20, § 2, eff. 5/7/2015; 2017 , No. 12, § 5, eff. 5/1/2017; 2019, No. 110 (Adj. Sess.), § 3, eff. 6/15/2020.