Vermont regulator relaxes rules for captive board meetings

Vermont-domiciled captive insurers that are unable to hold a board meeting in the state in 2020 due to ongoing disruptions from the COVID-19 pandemic can request a temporary waiver in writing from the Vermont Department of Financial Regulation.

In a March 18 note to captive managers and key contacts, the Vermont Department of Financial Regulation said it recognized that many organizations have companywide travel restrictions already in place.

“We hope that such restrictions will be lifted soon but are aware that larger board meetings take months of planning and require that arrangements be made well in advance of the meeting date,” the Department of Financial Regulation said.

“It may not be possible to reschedule some meetings that were planned for this Spring and Summer. If circumstances dictate that you are unable to hold a board meeting in Vermont in 2020, just send a letter to DFR.CaptiveMail@vermont.gov to request a waiver,” the note said.

The note applies only to the statutory requirement to hold a board meeting in Vermont, the Department of Financial Regulation said.

“All captives should continue to hold board meetings per their own governance rules either in their own offices or virtually,” according to the note.

It’s not a blanket waiver, said Dave Provost, deputy commissioner of captive insurance. “We’ve told people if you’re unable to hold a meeting we understand and will grant waivers on a case by case basis,” he said.

A lot of captives may hold their meetings later in the year, if things get back to normal by then, he said.

Captives are required to hold board meetings in their place of domicile under captive laws.

Vermont ranks as the third-largest captive domicile, with 585 licensed captives in 2019, according to Business Insurance’s latest survey.

More insurance and risk management news on the coronavirus crisis here.