| Rule Number: |
25P017 |
| Title: |
Insurance Holding Company Systems. |
|
Type:
|
Standard |
|
Status:
|
Adopted |
| Agency: |
Department of Financial Regulation
|
| Legal Authority: |
8 V.S.A. § 15(a); 8 V.S.A. § 3688 |
| Summary:
| The Insurance Holding Company Systems Rule sets out the rules and procedural requirements necessary to carry out 8 V.S.A. Chapter 101, Subchapter 13, which establishes regulatory requirements governing registration, acquisitions and other transactions, and solvency of insurance holding company systems as a whole (and not limited to insurance companies within the system). The update is necessary to bring the rule into compliance with 8 V.S.A. §§ 3681, 3684, and 3685 as modified by Act 110 (H.659) of 2024. The revisions to the rule are intended to provide regulators with more transparency regarding insurance holding company systems as a whole and to make risks and solvency concerns within the system easier to identify. Changes to the rule clarify some of the statutory exemptions to filing requirements and required terms in agreements for cost sharing and management services. Other changes are for clarity and to simplify the process for filing certain documents. |
| Persons Affected:
| The modification to the rule affects entities that are part of insurance holding company systems that transact business in Vermont, including insurance companies. The modification to the rule also benefits consumers and the Department. |
| Economic Impact:
| The economic cost of the modifications to the rule are anticipated to be limited. Specifically, we anticipate minimal additional compliance and reporting costs for entities that are part of insurance company holding systems associated with (i) including additional required terms in cost sharing and management services agreements and (ii) establishing any exemptions from filing group capital calculations. The modifications to the rule benefit the Department and insurance consumers by better ensuring the solvency of insurance companies that are part of a holding company system. The revisions to the rule address exceptions to filings required by recent changes in 8
V.S.A. § 3684, change some required terms for agreement for cost sharing services and management services, and are for clarity and are expected to impose minimal additional costs. The updates reflect changes made in the widely-accepted National Association of Insurance Commissioners model rule, which benefits the Department. |
| Posting date: |
May 14,2025 |
