Captive Licenses

GENERAL INSTRUCTIONS

On the Forms page of this section you'll find application forms for admission as a captive insurance company together with a sample letter of credit form and biographical affidavit form.

The application form must be filled out in its entirety and when submitted should include all material requested together with an application fee of $200.00. No incomplete package of material will be accepted.

If letters of credit are used to meet capital and surplus requirements FORM E702 - Irrevocable Letter of Credit must be adhered to by the institution issuing the letter of credit. Copies should be made and enclosed as required by the application. Each affidavit must be filled out in its entirety and no substitute for this form will be accepted.

FINANCIAL REGULATION

Financial Regulation 81-2 requires that an independent certified public accountant, approved by the Commissioner, audit the captive annually. It is incumbent upon the applicant to select an accountant who meets the requirements of Regulation 81-2. You may ask the Department if your CPA is currently approved.

CERTIFICATION OF RESERVES

Financial Regulation 81-2 requires that loss reserves and loss expense reserves be certified by a Fellow of the Casualty Actuarial Society, a member in good standing of the American Academy of Actuaries or an individual who has demonstrated his competence in loss reserve evaluation and has been approved by the Commissioner. It is incumbent upon the applicant to select a member or individual who meets the requirements of this regulation.

REVIEW FIRM

All applications will be reviewed by one of the five review firms appointed by the Commissioner. The firms' duties are of an advisory nature only and final approval or disapproval of an application will be made by the Commissioner only.

CAPTIVE BLANK

Pure and Industrial Insured captives will file an annual statement on a Vermont Captive Insurance Company blank established by the Commissioner. Association captives and Risk Retention Groups will file an annual statement on the NAIC blank currently in use by the insurance industry.

LOCATION OF CAPTIVE RECORDS

All books, records, and other information necessary for a statutory examination should be located in Vermont.

APPLICATION TURNAROUND TIME: Approximately 30 Days from Receipt