The bill H.649 amends various sections of Vermont's insurance laws, specifically focusing on captive insurance companies and risk retention groups. One significant change is the introduction of a prohibition against risk retention groups making loans or investments in their members or affiliates, effective from January 1, 2026. Additionally, the bill modifies reporting requirements for captive insurance companies, mandating that they report their financial condition using generally accepted accounting principles or other approved methods. It also establishes new filing requirements for risk retention groups, including the submission of annual and quarterly statements to the National Association of Insurance Commissioners (NAIC) and allows for alternative reporting dates under certain conditions.

Furthermore, the bill introduces a new section requiring protected cells to file a certifying statement with the Commissioner within 30 days of commencing business, confirming that they possess the necessary funding and collateral as per their approved operational plans. This statement must be signed by designated officers depending on the structure of the protected cell. The act is set to take effect on July 1, 2026, ensuring that all changes are implemented in a timely manner.

Statutes affected:
As Introduced: 8-6010, 8-6007
As Passed By the House -- Official: 8-6010, 8-6007
As Passed By the House -- Unofficial: 8-6010, 8-6007