Bill H.649 proposes several amendments to the regulations governing captive insurance companies and risk retention groups in Vermont. Notably, it introduces a prohibition on risk retention groups making loans or investments to their parent companies or affiliates, effective from January 1, 2026. The bill also restructures reporting requirements for captive insurance companies, mandating that they submit annual financial condition reports to the Commissioner, verified by executive officers, and adhere to generally accepted accounting principles unless otherwise approved. Additionally, it establishes new certification requirements for protected cells within sponsored captive insurance companies, requiring them to certify their funding status within 30 days of commencing business.

The bill further specifies that risk retention groups must file their annual and quarterly financial statements electronically with the National Association of Insurance Commissioners (NAIC) and outlines the timeline for these filings. It also allows for alternative reporting dates for certain captive insurance companies, provided they meet specific conditions. The act is set to take effect on July 1, 2026, ensuring that the new regulations are implemented in a timely manner.

Statutes affected:
As Introduced: 8-6010, 8-6007