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VT Considers Agent, Broker Captives

The Vermont House Committee on Commerce and Economic Development is considering legislation that would enable insurance agencies and brokerages to form captive insurance companies...
January 31, 2017

The Vermont House Committee on Commerce and Economic Development is considering legislation that would enable insurance agencies and brokerages to form captive insurance companies. Under the bill sponsored by Rep. Bill Botzow (D), an agency captive is defined as a captive insurance company that is owned, or either directly or indirectly controlled, by one or more insurance agencies or brokerages licensed under the laws of any state, and they can only insure the risk of policies that are placed by or through the agencies or brokerages.

Vermont Deputy Commissioner of Captive Insurance David Provost said his agency and the Vermont Captive Insurance Association helped draft the bill, which would update several provisions of the state's captive law. Provost noted that Vermont has been turning away one or two requests annually from agents seeking to have captives because the captive law did not allow agents or brokers to have them.

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