§6024. Dormant captive insurance companies

Link to law: http://legislature.vermont.gov/statutes/section/08/141/06024
Published: 2015

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The Vermont Statutes Online



Title

08

:
Banking and Insurance






Chapter

141

:
CAPTIVE INSURANCE COMPANIES






Subchapter

001
:
GENERAL PROVISIONS










 

§

6024. Dormant captive insurance companies

(a) As used in

this section, unless the context requires otherwise, "dormant captive

insurance company" means a pure captive insurance company which has:

(1) at no time,

insured controlled unaffiliated business;

(2) ceased

transacting the business of insurance, including the issuance of insurance

policies; and

(3) no remaining

liabilities associated with insurance business transactions, or insurance

policies issued prior to the filing of its application for a certificate of

dormancy under this section.

(b) A pure

captive insurance company domiciled in Vermont which meets the criteria of

subsection (a) of this section may apply to the Commissioner for a certificate

of dormancy. The certificate of dormancy shall be subject to renewal every five

years and shall be forfeited if not renewed within such time.

(c) A dormant

captive insurance company which has been issued a certificate of dormancy

shall:

(1) possess and

thereafter maintain unimpaired, paid-in capital and surplus of not less than

$25,000.00;

(2) prior to

March 15 of each year, submit to the Commissioner a report of its financial

condition, verified by oath of two of its executive officers, in a form as may

be prescribed by the Commissioner; and

(3) pay a

license renewal fee as provided in subsection 6002(d) of this chapter.

(d) A dormant

captive insurance company shall not be subject to or liable for the payment of

any tax under section 6014 of this chapter.

(e) A dormant

captive insurance company shall apply to the Commissioner for approval to

surrender its certificate of dormancy and resume conducting the business of

insurance prior to issuing any insurance policies.

(f) A

certificate of dormancy shall be revoked if a dormant captive insurance company

no longer meets the criteria of subsection (a) of this section.

(g) The

Commissioner may establish guidelines and procedures as necessary to carry out

the provisions of this section. (Added 2013, No. 103 (Adj. Sess.), § 1, eff.

April 14, 2014.)
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