On April 15, 2014, legislation was passed in Vermont enhancing the state’s captive law. H.563, known as “An Act Relating To Captive Insurance Laws And Accreditation Standards,” allows a “dormant” captive to maintain licensing status within Vermont. To obtain a certificate of dormancy, a captive must:
- maintain unimpaired, paid-in capital and surplus of at least $25,000;
- prior to March 15 of each year, submit a report of its financial condition; and
- pay license renewal fees.
Once the status is granted, the dormant captive will not be subject to the premium tax provisions under the captives law.
To view a copy of the new legislation, click here.