Vermont Amends Captive Insurance Statutes in Annual Bill

For Immediate Release
May 20, 2025

Vermont Amends Captive Insurance Statutes in Annual Bill
Vermont Continues to Work with Industry to Make Improvements

Montpelier, Vt. –  On May 19, 2025, Governor Scott signed into law the Department of Financial Regulation’s (DFR) 2025 housekeeping bill H.137, an act relating to the regulation of insurance products and services. The new law includes important updates identified by the DFR’s captive insurance division, with stakeholder input, particularly from the Vermont Captive Insurance Association (VCIA).

“It’s important for Vermont to consistently modernize captive insurance laws in this highly competitive sector,” said Governor Phil Scott. “By working collaboratively with industry partners and the Legislature, Vermont maintains its strong reputation in this sector and continues to be a place where companies choose to conduct business in.”

Highlights of this year’s bill include:

• Aligning captive licensing authority more closely with the DFR’s insurance statutes by referencing 8 V.S.A, Section 3301
• Amendments to acknowledge and distinguish the signing authority of individuals in a manager-managed limited liability company;
• Implementing provisions relating to mutual insurers; and clarifies language for captives conducting business as reinsurance companies.

“It’s clear that Vermont’s strength as a global leader is due to our regulatory framework, and the DFR’s ability to work effectively with the robust network of service providers who have built a strong foundation for success in the industry,” said Kaj Samsom, Commissioner, Department of Financial Regulation.  

“I am proud the DFR continues the tradition of working well with industry to advance and improve upon the regulatory environment for the long-term success of our domicile,” said Sandy Bigglestone, Deputy Commissioner of the Captive Insurance Division, Department of Financial Regulation.

“The VCIA has worked with Vermont’s regulators and lawmakers over decades collaboratively and efficiently to evolve the industry and improve the experience of captive insurance companies that choose Vermont,” said Kevin Mead, CEO, VCIA.

This year marks the 40th anniversary of the VCIA. The Association will celebrate their success throughout this year’s Annual Conference in August in Burlington, Vermont.

For more information on Vermont’s captive insurance industry, visit www.vermontcaptive.com, call Brittany Nevins at 802-398-5192 or email Brittany.nevins@vermont.gov.

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About Vermont Captive Insurance
Captive insurance is a regulated form of self-insurance that has existed since the 1950’s and has been a part of the Vermont insurance industry since 1981, when Vermont passed the Special Insurer Act. Captive insurance companies are formed by companies or groups of companies as a form of alternative insurance to better manage their own risk. Captives are commonly used for corporate lines of insurance such as property, general liability, products liability, or professional liability.