Verizon gets OK to reinsure group term life through Vermont captive

WASHINGTON—The Labor Department has given Verizon Communications Inc. final approval to use its Vermont captive insurance company to reinsure group term life insurance benefits.

Under the arrangement, Exchange Indemnity Co. will reinsure 100% of the risk with Prudential Life Insurance Co., which underwrites life insurance plans covering Verizon employees and subsidiary Verizon Wireless.

In its most recent fiscal year ending Sept. 30, 2010, EIC, which was licensed in 1995, reported $918 million in gross annual premiums and $1.7 billion in assets.

The approval notice provided to Basking Ridge, N.J.-based Verizon is scheduled to be published in Thursday’s Federal Register.