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Vt. looks to expand insurance industry success - WCAX.COM Local Vermont News, Weather and Sports-

Vt. looks to expand insurance industry success

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MONTPELIER, Vt. -

Gov. Peter Shumlin hopes a new law aimed at attracting specialized insurance companies will provide an economic boost.

Shumlin, D-Vermont, signed the bill into law Wednesday.

The measure will allow companies which no longer write particular policies to sell them to Vermont-based insurers which specialize in such coverage. The state would collect a small percentage tax on those sales.

Department of Financial Regulation Commissioner Susan Donegan says insurance innovation like this can help drive the state's economy.

"I want us to be a destination for financial services and I think this is the next step in that. We are going to be prudent in the way that we go about it, the way we were when we developed captive insurance all those many years ago. There were a few who came in the door and look where we are today," Donegan said.

The practice is already legal, but the new law is expected to reduce the time needed to complete sales from about two years to a few months.

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