Vermont § 6010 - Legal investments

§ 6010. Legal investments

• (a)(1) Except as may be otherwise authorized by the Commissioner, agency captive insurance
  companies, association captive insurance companies, sponsored captive insurance companies,
  protected cells in sponsored captive insurance companies, and risk retention groups
  shall: (A) comply with the investment requirements contained in sections 3461 through 3472 of this title, as applicable; or (B) submit for approval by the Commissioner the investment policy of the company. In reviewing
  the investment policy, the Commissioner shall consider diversification as to both
  type and issue; limits on the aggregate investment that may be made in any category
  of investment; limits on the aggregate investment in any one business, issuer, or
  risk; liquidity; and matching of assets and liabilities. The Commissioner shall determine
  whether the investment policy provides for the reasonable preservation, administration,
  and management of assets with respect to the risks associated with the company’s transactions
  and whether the investment policy supports the approved business plan. Subdivision 6002(c)(3) of this title shall apply to all information submitted pursuant to this subsection. (2) The Commissioner may require any company subject to this subsection to limit or withdraw
  from certain investments or discontinue certain investment practices if the Commissioner
  determines that such investments or practices of the company might be hazardous to
  the policyholders or the general public. (3) Section 3463a of this title shall apply to agency captive insurance companies, association captive insurance
  companies, and risk retention groups except to the extent it is inconsistent with
  approved accounting standards in use by the company. Notwithstanding any other provision
  of this title to the contrary, the Commissioner may approve the use of alternative,
  reliable methods of valuation and rating.