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The Vermont Statutes Online



Title

08

:
Banking and Insurance






Chapter

141

:
CAPTIVE INSURANCE COMPANIES






Subchapter

002
:
SPONSORED CAPTIVE INSURANCE COMPANIES










 

§

6032. Definitions

As used in this

subchapter, unless the context requires otherwise:

(1)

"General account" means all assets and liabilities of the sponsored

captive insurance company not attributable to a protected cell.

(2)

"Incorporated protected cell" means a protected cell that is

established as a corporation, mutual corporation, nonprofit corporation with

one or more members, limited liability company, or reciprocal insurer separate

from the sponsored captive insurance company of which it is a part.

(3)

"Participant" means an entity as defined in section 6036 of this

title, and any affiliates thereof, that are insured by a sponsored captive

insurance company, where the losses of the participant are limited through a

participant contract to such participant's pro rata share of the assets of one

or more protected cells identified in such participant contract.

(4)

"Participant contract" means a contract by which a sponsored captive

insurance company insures the risks of a participant and limits the losses of

each such participant to its pro rata share of the assets of one or more

protected cells identified in such participant contract.

(5)

"Protected cell" means a separate account established by a sponsored

captive insurance company formed or licensed under the provisions of this

chapter, in which assets are maintained for one or more participants in

accordance with the terms of one or more participant contracts to fund the

liability of the sponsored captive insurance company assumed on behalf of such participants

as set forth in such participant contracts, and shall include an

"incorporated protected cell," as defined in this section.

(6)

"Sponsor" means any entity that meets the requirements of section

6035 of this title and is approved by the Commissioner to provide all or part

of the capital and surplus required by applicable law and to organize and

operate a sponsored captive insurance company.

(7)

"Sponsored captive insurance company" means any captive insurance

company:

(A) in which the

minimum capital and surplus required by applicable law is provided by one or

more sponsors;

(B) that is

formed or licensed under the provisions of this chapter;

(C) that insures

the risks only of its participants through separate participant contracts; and

(D) that funds

its liability to each participant through one or more protected cells and

segregates the assets of each protected cell from the assets of other protected

cells and from the assets of the sponsored captive insurance company's general

account. (Added 2003, No. 55, § 9; amended 2011, No. 21, § 21; 2011, No. 78

(Adj. Sess.), § 35, eff. April 2, 2012; 2013, No. 103 (Adj. Sess.), § 7, eff.

April 14, 2014; 2015, No. 20, § 3, eff. May 7, 2015.)