Statement of Vermont Governor Jim Douglas On New Captive Insurance Law
MONTPELIER, Vt. – As our state tackles budget and revenue challenges, my administration continues to recognize how critical the captive insurance industry is to Vermont and the need to continue investing in our infrastructure and innovating in our regulation.
While many of our domestic competitors have reduced their commitment to promoting and regulating captives, Vermont is continuing to invest in this valuable sector of our economy. My Administration remains committed to keeping Vermont the ‘Gold Standard’ of captive domiciles. We changed the special funds budget from 10% to 11% of premium taxes collected for the funding formula to support captives.
Just as Vermont held a retail sales tax holiday this past July and saw increased activity we hope to stimulate the formation of new captives by offering a $7,500 reduction in premium tax for captives licensed in 2009 and 2010.
We intend to maintain Vermont’s position as the ‘Gold Standard’ of captive domiciles by continuing our strong and stable regulatory system, and making the investments necessary to sustain that.
The captive insurance industry creates valuable jobs and revenues to our state, and provides more than 1,400 full and part-time jobs for Vermonters. My Administration has been a tremendous supporter of the captive industry in Vermont, and will continue to be.