By Young Ha
A new law in Vermont would soon authorize the state to license and regulate specialized Vermont-based companies whose only purpose would be to assume and manage closed blocks of non-admitted commercial insurance policies and reinsurance agreements.
The legislation, Vermont’s Legacy Insurance Management Act (H. 198), passed the state House last year and passed the state Senate two weeks ago. Gov. Peter Shumlin, who has been a vocal supporter of the bill, is scheduled to sign it into law on Wednesday, Feb. 19. While this type of transfer mechanism is new to the U.S., it’s a well-known concept in overseas markets, according to industry observers.
Gov. Shumlin’s administration has been bullish on this bill, which has been three years in the making. In his budget address on Jan. 15, Gov. Shumlin offered a glimpse of the new industry, describing it as a new opportunity for Vermont’s financial services sector. READ MORE at Insurance Journal