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Vermont
Marsh Management Services Inc.
Head of Office: Julie Boucher, CPA
Sales Coordinators: Julie Boucher, CPA; Chris Varin, CPA, CITP, ARM
Office Address
100 Bank Street, Suite 610
Burlington, Vermont
05401
United States |
Telephone: (802) 864-5912
Facsimile: (802) 859-3550 |
Mailing Address
P.O Box 530
Burlington, Vermont 05402-0530
United States
Basic Information
| Location |
Vermont is located in the northeastern United States.
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| Accessibility |
Direct air transportation to Burlington, Vermont is available from Atlanta, Boston, Chicago, Cincinnati, Cleveland, Detroit, New York, Newark, Philadelphia and Washington, D.C. |
| Applicable Legislation |
The Vermont Special Insurer Act |
| Number of Captives |
839 licensed (557 operational) as of 31-Dec-2008 |
| Regulatory Agency |
Vermont Department of Banking, Insurance, Securities and Health Care Administration. |
Regulatory Issues
| Acceptable Licensed Entity Types |
Pure, Industrial Insured, Risk Retention Group, Association, Sponsored and [ERISA benefits] Branch. |
Acceptable Organizational Forms |
Stock, Limited Liability Company, Mutual, Non-profit and Reciprocal. |
| Permitted Business |
All Commercial Lines and most [fronted] personal lines. |
| Direct Insurance Permitted |
Related and "Controlled" Unrelated Risk. |
| Reinsurance Permitted |
Related and "Controlled" Unrelated Risk. |
| Policy Form and Rate Approval |
Not Required |
| Local Office Requirement |
- Principal place of business
- One Board of Directors meeting annually in Vermont
- One resident director
- Approved manager
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Capitalization & Solvency Requirements
| Entity |
Minimum
Capital and Surplus |
Pure
Industrial Insured
Risk Retention Group
Association
Sponsored
Branch |
$250,000
$500,000
$1,000,000
$750,000
$500,000
$250,000 |
| Solvency |
No formal solvency requirements exists, however a general benchmark is minimum of $1 of surplus for every $5 of net written premium and premium and surplus sufficient to pay at least one full limit loss for pure captives and two full limit losses for Group. |
| Premium Taxes |
Premium tax on direct premiums
0.380% on first $20 million
0.285% on next $20 million
0.190% on next $20 million
0.072% thereafter
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Premium tax on reinsurance premiums
0.214% on first $20 million
0.143% on next $20 million
0.048% on next $20 million
0.024% thereafter
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1) Premium taxes are subject to an overriding minimum of $7,500 per year and an overriding maximum of $200,000 per year. 2) Premium for contracts providing direct reimbursement for losses incurred under qualified self-insured workers' compensation programs are taxed at assumed rates.
Intercompany Loans
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Pure captives may lend funds in excess of the minimum capitalization requirements ($250,000) subject to regulatory approval. Approval is generally granted only for parents having a minimum of $100 million in equity and an investment grade debt rating. Some rare exceptions are made to these guidelines. |
| Investment Restrictions |
Admitted market restrictions apply to Association captives and RRG's unless exception granted. No specific restrictions for Pure or non-RRG Industrial Insured's. |
| Taxation |
Income generated by the captive will be subject to the federal tax rate of the captive parent (assuming the parent is U.S. based); otherwise, the captive income will initially be subject to the US federal rate and consolidated at the rate of the foreign parent. No Vermont State Income tax applies to captive profits. |
| Reporting Requirements |
- Pure and Industrial Insured - GAAP Financial Statements, Vermont Annual Statement
- Association and RRG - NAIC Blank
- Audited Financials
- Certified Loss Reserves
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