Captive Insurance, Risk Retention Groups and Reinsurance:
A Leading Legal Practice with Worldwide Connections

At Downs Rachlin Martin PLLC (DRM), delivering high quality legal services and personal attention to clients are our highest priorities. A solid reputation spanning 57 years and a dynamic, expanding practice with more than 85 attorneys and legal professionals provide the measures of our success. Our selection as Lex Mundi’s Vermont member firm places us among 160 prestigious law firms in 99 countries.

Vermont is the leading U.S. domicile for captive insurers and risk retention groups (RRGs), and DRM has been at the forefront of the U.S. captive insurance industry for 25 years.

Vermont is the largest U.S. captive domicile, second in the world in assets and third in the number of licenses. The state became a leader by passage of enabling legislation in 1981, thus providing important “on-shore” opportunities for American businesses and associations. DRM’s insurance group realized the significance of this enabling legislation and immediately responded with advice to assist captive insurance companies with formation and operational issues.

Our attorneys’ sharp legal skills, technical understanding and comprehensive knowledge of the legal, regulatory and tax issues that shape the captive industry have enabled us to:

• represent more than 100 organized and operating Vermont single-parent and group captive insurance companies, including RRGs
• serve as general counsel to a large number of group captive insurers
• receive favorable determinations of tax-exempt status for several captive insurers
• advise captives on risk transfer and risk distribution “safe harbors” for tax purposes
• successfully assist captives with reinsurance coverage disputes
• advise a growing number of companies domiciled in other states and offshore
• obtain a 100 percent abatement of non-Vermont unitary income tax assessed against the owner of a Vermont captive

DRM’s insurance team informs clients about choice of entity, operational issues, developments under legislation such as the Federal Risk Retention Act and the Terrorism Risk Insurance Act (TRIA), and complex coverage, claims-handling or defense issues that can arise.

Our insurance clients seek advice on all aspects of their operations, including organizational matters for start-up companies, how to adapt or take full advantage of changes in federal and state regulations and sophisticated risk transfer matters for established entities. Using the right resources drawn from the comprehensive legal services offered by DRM, we help clients solve both simple and complex problems involved in all aspects of the insurance industry:

• tax, regulatory and legislative matters
• corporate governance
• entity selection: stock, mutual and non-profit corporations; LLCs; reciprocal exchanges
• securities laws
• domicile selection
• reinsurance matters
• coverage and defense matters
• policy language
• claims-handling procedures
• reciprocal formation and the role of the attorney-in-fact
• sponsored captives with segregated cells
• other routine issues involving alternate risk transfer mechanisms

World-class talent at an excellent value

DRM’s New England location attracts lawyers and legal professionals with world-class talent who choose high-quality lifestyles in the smaller cities and towns of Vermont and New Hampshire. For DRM’s clients, that means you get the personal attention and value associated with a smaller law firm, without sacrificing talent, depth or quality.

Based in Vermont and New Hampshire, connected throughout the world

As the exclusive member firm for Vermont of Lex Mundi, the world’s leading association of independent law firms, DRM has immediate entrée to more than 20,000 lawyers in 160 prominent and successful law firms with 560 offices in 99 countries. The firm’s association with Lex Mundi gives DRM’s clients the added benefits of:

• access to local market knowledge and experience
• relevant industry expertise
• sound business and language skills
• responsive service

To explore how DRM’s Insurance group can help with your captive insurance matters, please contact Practice Group Chair Kathy Davis.

Downs Rachlin Martin PLLC is a full-service, regional law firm. As clients’ needs expand into other areas of law, the firm’s wide range of legal specialties and commitment to vigorous collaboration across practice areas can provide seamless, cost-effective legal representation.