Vermont Governor Phil Scott on Monday signed legislation amending the state's captive law to add the agency captive form and to extend dormancy provisions to all captive types.

        According to a state press release, the law allows the agency captive structure—a reinsurance company controlled by an insurance agency or brokerage—to be licensed in Vermont.

        Richard Smith, president of Burlington-based company and chairman of the Vermont Captive Insurance Association, said in a statement that he has been approached by several organizations interested in forming agency captives in Vermont.

        The law extends dormancy provisions to all captive types, allowing companies to remain in Vermont in a low-cost form and revive operations when the time is right.

        Over the past five years, Vermont's captive count has remained stable: there were 593 captives in 2016, down from 596 in 2015 but still above the 587 recorded in 2014.

Source: Business Insurance