By Hilary Niles
Gov. Peter Shumlin signed a new “legacy insurance” industry bill Wednesday that could pump millions of dollars into state coffers.
Shumlin called the Legacy Insurance Management Act, or LIMA, an “innovative insurance product that is needed in America.” House bill 198, three years in the making, allows insurance companies to unload blocks of policies they’re no longer selling, but which still hold liabilities.
Policymakers say Vermont’s LIMA is the first of its kind in the U.S., though it’s modeled after similar products in Europe. The option to unload legacy policies is not available for retail insurance lines such as auto or life insurance. READ MORE at VTDigger.org