The Vermont Department of Financial Regulation recently amended its regulation pertaining to credit for reinsurance. As we detailed on June 16, 2015, the amendment follows a proposal issued by the Department of Financial Regulation earlier this year. This follows a 2014 amendment to Vermont’s Credit for Reinsurance Act and brings the regulations in compliance with that act. Specifically, the amended regulation sets forth the procedural requirements through which a Vermont insurance company may take credit for insurance ceded to a reinsurer in line with the amended Credit for Reinsurance Act, as well as requires specific clauses in the reinsurance agreements in order for ceding insurers to receive credit for reinsurance. 4-3 Vt. Code R. § 32 (Oct. 28, 2015).
This post written by Zach Ludens.
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