“Dormant Status” Now Granted Under Vermont Captives Law


    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.

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