Vermont § 6024 - Dormant 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 captive insurance company that has: (1) ceased transacting the business of insurance, including the issuance of insurance
  policies; and (2) 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 captive insurance company domiciled in Vermont that 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 that has been issued a certificate of dormancy
  shall: (1) possess and thereafter maintain unimpaired, paid-in capital and surplus of not less
  than $25,000.00; provided, however, that if the dormant captive insurance company
  had never capitalized, it shall not be required to add capital upon entering dormancy; (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 or, in the case of a
  captive insurance company formed as a limited liability company or as a reciprocal
  insurer, of two individuals authorized by its governing board, in a form as may be
  prescribed by the Commissioner; and (3) pay a license renewal fee of $500.00. (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. (f) A certificate of dormancy shall be revoked if a dormant captive insurance company
  no longer meets the criteria of subsection (a) of this section. (g) The 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; amended 2015, No. 74 (Adj. Sess.), § 2, eff. April 13, 2016; 2017, No. 12, § 8, eff. May 1, 2017; 2019, No. 110 (Adj. Sess.), § 2, eff. June 15, 2020; 2025, No. 23, § 11, eff. July 1, 2025.)