Vermont Gov. Peter Shumlin on Wednesday signed the Vermont Legacy Insurance Management Act (LIMA). The new law would allow the formation of specialized, Vermont-based companies to acquire and manage closed blocks of non-admitted commercial insurance policies and reinsurance agreements.
Gov. Shumlin said these new Vermont companies would contribute to Vermont’s economy. “Patterned after Vermont’s captive insurance companies, I believe LIMA will bring new revenues to the state through transaction tax revenues and fees, and will create a wide variety of high-value, skilled, well-paying financial sector job opportunities,” he said.
The law also requires LIMA companies to hold an annual meeting in Vermont, which will sell hotel rooms, meals and add tourist dollars, officials said.
Susan Donegan, commissioner of Vermont’s Department of Financial Regulation, said she is pleased that Vermont has again forged the way for new opportunities in the insurance industry.
“The first of its kind in the United States, this landmark legislation allows Vermont to respond to a unique insurance market objective and is a golden opportunity for the state to expand its innovative financial services regulatory niche,” she said.
All transfers will be subject to the review and approval of the Vermont Department of Financial Regulation and will be limited to commercial insurance policies.