The Vermont Statutes Online
Banking and Insurance
CAPTIVE INSURANCE COMPANIES
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;
transacting the business of insurance, including the issuance of insurance
(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
(1) possess and
thereafter maintain unimpaired, paid-in capital and surplus of not less than
(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.
certificate of dormancy shall be revoked if a dormant captive insurance company
no longer meets the criteria of subsection (a) of this section.
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.)