Vermont may not have written the first captive laws in the United States, but they have become the model upon which most other domestic domiciles base their laws. The second largest captive domicile in the world, as measured by net premiums, Vermont is also the third largest in terms of active licensees.

A wide variety of captives, from pure and association captives to special purpose captives and risk retention groups, make their home in Vermont.  The majority of Dow 30 companies have a captive here, taking advantage of Vermont's flexible regulatory approach and competitive tax structure. Captives in the state write everything from medical malpractice insurance to employee benefits.

Vermont also allows most captives credit against their required loss reserves for the amount of risk ceded to a reinsurer. Each year it requires an annual report, actuarial opinion, audited actuarial statement, a license renewal and an annual meeting in the state. The latter requirement rarely generates complaints, as Vermont is one of the top vacation destinations in the U.S.