Vermont DFR Captive Insurance Regulatory Notification – Examination Report Changes

STATE OF VERMONT DEPARTMENT OF FINANCIAL REGULATION DFR Captive Insurance Regulatory Notification – Examination Report Changes Issue Date: July 8, 2026 89 Main Street Montpelier, VT 05620-3101 (p) 802-828-3304 https://dfr.vermont.gov/captive￾insurance

CAPTIVE INSURANCE COMPANY EXAMINATION REPORTS Notification of Upcoming Changes Effective immediately, the Vermont Department of Financial Regulation (Department) is revising the format and content of its examination reports for all examinations, excluding risk retention groups, to better align examination reporting with the Department’s existing risk-focused examination practices. For many years, the Department has employed a risk-based approach to examinations, directing examination procedures toward areas that have the greatest potential impact on a captive insurer's financial condition, governance, operations, compliance, and prospective solvency. While examination practices have evolved to reflect this approach, the format and content of examination reports have remained largely unchanged. As a result, examination reports have often included standard operational information and financial data frequently found within other filings and reports. The revised report format is intended to better reflect the purpose of the examination and focus on material findings, recommendations, and conclusions, while reducing discussion of routine operational activities and disclosure of redundant information. Importantly, these revisions do not represent a reduction in examination scope. Rather, they are intended to ensure that examination reporting appropriately reflects the risk￾focused work being performed and communicates the Department's conclusions in a clear, concise, and relevant manner.