On February 19, Vermont Governor Peter Shumlin signed the Legacy Insurance Management Act (LIMA). The law enables a non-admitted insurer in the U.S. or abroad to transfer closed blocks of commercial insurance/reinsurance business with outstanding liabilities, together with the reserves relating to those liabilities, to Vermont-admitted insurers or other investors. These Vermont entities would then assume all financial and legal liabilities associated with these insurance policies/reinsurance agreements. This law, the first of its kind in the U.S., creates a legal, regulatory, and structural framework for …
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