News by sections

News by region
Issue archives
Archive section
Emerging talent
Emerging talent profiles
Domicile guidebook
Guidebook online
Search site
Features
Interviews
Domicile profiles
Generic business image for news article Image: Shutterstock

20 February 2014
Vermont
Reporter Stephen Durham

Share this article





Vermont continues captive evolution

Vermont has introduced a bill called the Vermont Legacy Insurance Management Act (LIMA), which has the potential to drive millions of dollars into the state’s economy.

The bill allows specialized Vermont-based insurance companies to acquire or unload closed blocks of non-admitted commercial insurance policies and reinsurance agreements— subject to fees and transfer taxes. The purchaser, or legacy insurance company, does so if it is able to manage the legacy liabilities more efficiently than the original insurance company.

In buying the block of policies, along with a proportion of the financial reserves the insurance company had set aside to cover risks, the legacy firm manages any claims that might come through, and invests the reserves in order to turn a profit.

As LIMA covers only commercial insurance, no life, health, auto, homeowners' or workers' compensation, is included. The legacy companies must be based in Vermont and hold at least one meeting there every year.

Subscribe advert
Get in touch
News
More sections
Black Knight Media