Vermont § 6011 - Reinsurance

§ 6011. Reinsurance

• (a) Any captive insurance company may provide reinsurance of policies approved by the
  Commissioner comprised in section 3301 of this title, on risks of its parent, affiliated
  companies, and controlled unaffiliated business ceded by any other insurer, and may
  provide reinsurance of annuity contracts as defined in section 3717 of this title
  that are granted by any other insurer. (b) Any captive insurance company may take credit for the reinsurance of risks or portions
  of risks ceded to reinsurers complying with the provisions of subsections 3634a(a)
  through (e) of this title. Prior approval of the Commissioner shall be required for
  ceding or taking credit for the reinsurance of risks or portions of risks ceded to
  reinsurers not complying with subsections 3634a(a) through (e) of this title. (c) In addition to reinsurers authorized under the provisions of section 3634a of this title, a captive insurance company may take credit for the reinsurance of risks or portions
  of risks ceded to a pool, exchange, or association acting as a reinsurer that has
  been authorized by the Commissioner. The Commissioner may require any other documents,
  financial information, or other evidence that such a pool, exchange, or association
  will be able to provide adequate security for its financial obligations. The Commissioner
  may deny authorization or impose any limitations on the activities of a reinsurance
  pool, exchange, or association that, in the Commissioner’s judgment, are necessary
  and proper to provide adequate security for the ceding captive insurance company and
  for the protection and consequent benefit of the public at large. (d) For all purposes of this chapter, insurance by a captive insurance company of any
  workers’ compensation qualified self-insured plan of its parent and affiliates shall
  be deemed to be reinsurance. (Added 1981, No. 28; 1985, No. 170 (Adj. Sess.), § 1, eff. May 7, 1986; amended 1987, No. 168 (Adj. Sess.), § 3, eff. May 3, 1988; 1991, No. 249 (Adj. Sess.), § 24; 93, No. 40, §§ 7, 8, eff. June 3, 1993; 1999, No. 38, § 13, eff. May 20, 1999; 2003, No. 55, § 7; 2005, No. 122 (Adj. Sess.), § 4; 2023, No. 32, § 1, eff. July 1, 2023; 2023, No. 110 (Adj. Sess.), § 6, eff. July 1, 2024; 2025, No. 23, § 10, eff. July 1, 2025.)