1. Vermont’s Regulators Plant the Seeds of Captive Growth Dan Towle, Director of Financial Services Derick White, Director of Captive Insurance Peter Raymond, Director of Financial Examinations Leonard Crouse, Deputy Commissioner of Captive Insurance

2. Today’s Format Interactive Format Ask questions if you have them

3. Vermont Captive Video The First Decade Governor Snelling 1991

4. History of Vermont – The 80’s Vermont enacts Captive Statute – Licenses its First Captive Company LRRA adopted VT Celebrates 100 th Captive

5. History of Vermont – The 90’s FAS 106 Employee Benefits Controlled Unaffiliated Business Reduced premium taxes Enabling legislation for reciprocals Sponsored Captives Branch Captives Annuity Contracts VT Celebrates 300 th Captive VT Celebrates 400 th Captive VT Celebrates 200 th Captive

6. History of Vermont – New Century VT Celebrates 500 th Captive VT Celebrates 600 th Captive VT Celebrates 700 th Captive General rewrite Reduced Premium Taxes Allowed LLC's Allowed Not-For-Profit’s VT Celebrates 800 th Captive SPFC’s

7. Examinations Number of examinations by year How examinations have changed over the years Pure captive vs. risk retention group

8. Examinations by Year

9. Examination Staff Number of examiners by year How qualifications of staff have changed over the years NAIC staff requirements

10. Examination Staff by Year

11. National Association of Insurance Commissioners Changes in NAIC requirements over the years Corporate Governance Standards Adoption of NAIC Model Laws – Accreditation Standards

12. Surveillance How the surveillance of captives has changed Pure captives vs. risk retention groups Review of parent company financials

22. Vermont: The Early Years Just Ed, me, and the filing cabinet Vermont Captive Insurance Association Humble beginnings

23. Vermont: How Things Have Changed Vermont’s infrastructure: the banks, lawyers, etc. Changing competition among domiciles

24. Vermont’s Growth of Captives

25. Vermont’s Growth of Premium Volume

26. VT Captive Managers What a long strange trip its been More consolidation or more independents?

27. Vermont: Lending a Helping Hand Department of Labor – Employee Benefits AM Best Assisting other domiciles

28. Vermont: Lending a Helping Hand on Mortgage Insurance Washington D.C. Boston branch of the Federal Reserve Office of Thrift Supervision (OTS) Freddie Mac

29. Vermont: Lending a Helping Hand Housing & Urban Development – Title Insurance Environment Protection Agency – Closure - Post Closure of landfills Federal Home Loan Bank – Captives 101 House Committee of Small Business – Health Insurance

30. Looking Forward: Employee Benefits Employee Benefits The Vermont Approach

31. Looking Forward: Securitization Securitization and where it is heading Triple X is just the beginning The Vermont Approach

32. Vermont Captive Video The First Decade Governor Snelling 1991

33. Questions?