Berlitz Phrasebook for Vermont

vermont-festivals4fun-imageI know most of you are busy preparing for next week’s VCIA conference – remember to pack comfortable shoes! – so I thought I would share a few tips on “Vermont-isms” that you may hear while you are here (and, yes, they sound a lot like “Maine-isms”, but don’t say that to a Vermonter):

Jeezum Crow – Commonly used in a state of anger or surprise, but it’s less offensive than yelling “Je$@$ Ch^!$&!”

Dooryard – This is the main entry way area into the house for people. Or rather, it hasn’t been taken over by the farm and used by animals.

Mounain – Not “mountain,” it’s “mounain” (pronounced without the “t”).

By the Jesus – Often said in a state of amazement, this is another way of saying “You betcha!”

Djeet? – A quick way of asking “Did you eat?”

Creemee – Forget Ben & Jerrys! When you are in Vermont this is ice cream (although it means a soft serve).

Upta – As in “Are you going upta the mountain?”

Yahd Aht – Or “Yard Art”. You’ll find all sorts of interesting things in yards in Vermont…

Flatlander – Someone (anyone) who wasn’t born in Vermont.

Woodchuck – A guy who lives and thrives in rural Vermont. Oh, and he can probably fix just about anything.

Keow – Those are the black and white animals that provide Ben & Jerry’s their cream.

I won’t be posting for a few weeks as I will be conferencing and then going on a nice, long holiday with the fam. I look forward to seeing many of you next week, by jeezum!

Rich Smith, VCIA President

Two Sides of the Same Coin

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Talk to most business people anywhere and the thought of “regulation” can make them bristle. And with good reason. Often times overzealous regulators help create overzealous regulations that are intended to protect citizens or the environment or fair markets but can instead create sweeping mandates that do more harm than good. To wit, the Trump administration’s proposal reducing regulations for American businesses by requiring that for every new rule proposed, two should be repealed.

This has reminded me of my old friend and former CICA President Dennis Harwick’s dictum he called the ‘regulatory imperative’: First and foremost, regulators live in terror of being accused of failing to protect consumers in whatever industry they are regulating. Second, they want everything and everybody they regulate to fit into a single template.

Captives—by nature and definition—tend not to fit within that regulatory dynamic. As Vermont’s chief captive regulator, Dave Provost, is fond of saying, ‘When you’ve seen one captive, you’ve seen one captive.’ Captives don’t usually fit into a template, due to the uniqueness of the risks and plans of their specific owners. Also, the consumer protection element is vastly reduced by the fact that the ‘consumers’ actually build and own the captive.

I think the anti-regulatory wave could be a double-edged sword for captives. On the one hand, rolling back regulations does open the door for more opportunity for American businesses.  And certainly for captives there have been numerous instances where regulations have had a deleterious impact on our industry, primarily at the federal level, but also in states with little or no understanding of captive insurance concepts.

But deregulation could introduce some uncertainty for underwriters as regulations often are created to reduce risk for businesses. In an article in Risk & Insurance by Katie Siegel this past April, she writes that if regulation goes away, some risk comes back. Maybe not right away, but with a lack of oversight in some key areas of safety and loss prevention, those risks may start to creep up again and result in unintended losses. And underwriters also rely on federal regulations to provide a reliable risk management framework by creating a reliable compliance framework for all companies to follow.

Good, strong regulation is consistent with the mission of the parent organizations that license their captives in Vermont. The best risk managers understand that adhering to high standards is as much about good business as it is about compliance.  After all, it’s their money at risk!

I look forward to hearing from you.

Rich Smith
VCIA President

Sometimes it Works!

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There are too many horror stories about dealing with government bureaucracies, but here is a “shout out” to the State of Virginia as well as an important lesson to always keep trying.

VCIA and NRRA wrote letters regarding the proposed changes to the Virginia Fair Claims Act. The Act threatened to effectively eliminate any ability to write coverage on a “claims-made and reported” policy form and would have negatively impacted RRGs doing business in the state. Our letters addressed the fact that the language of the proposal could have been interpreted to include a requirement that all insurers must demonstrate prejudice in order to deny coverage based on the insured’s failure to comply with time-limited policy notice provisions.

Somewhat surprisingly, the letters generated a personal call to me from the Virginia State Corporation Commission the following day, and we were invited to work with them to fix the issue.  Drawing on the expertise of VCIA members Joe Holahan, Jon Harkavy, Kathy Davis and Skip Myers, we suggested a slight change to the proposal that satisfied the state’s needs while protecting RRGs. It’s heartening to me when a state responds quickly and openly to comments, and it’s a good reminder on just how vigilant we need to be!

I look forward to hearing from you.

Rich Smith
VCIA President

City of Brotherly Love… at booth #1817

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Just a quick blog too say I am heading down to Philadelphia this weekend for the annual RIMS conference.  Although RIMS is “yuge” (over 10,000 attendees they say), Vermont still is able to attract a good crowd to the Vermont booth every year.

We get a number of folks from Vermont’s captive community who go down to RIMS and represent the Vermont captive industry at the booth. This year Ian Davis is taking the reins with DFR staff, Dave Provost, Sandy Bigglestone, Dan Petterson, Jonathan Spencer, Stacy Alden, Lance Tourville and Christine Brown. Also there will be KeyBankers, Jordan Mosher and Mat Robitaille, Steve Killoran from Maple Capital, Bill Riley from Paul Frank + Collins, and Mitch Cantor from ICCIE. Oh, yeah, and I will be there as well!

So if you are going to be at RIMS this year, come by booth #1817 and say hi!
Thank you all very much, and I look forward to hearing from you.

Rich Smith
VCIA President

Welcome, Ian

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Ian Davis, Director of Financial Services, State of Vermont

I hope you will all join me in welcoming Ian Davis as the next Director of Financial Services for the State of Vermont! The position is responsible for the marketing and business development for the State’s Captive Insurance Industry.  Ian has replaced Dan Towle, who moved on to become the new President of CICA recently.

Our staff and I have already been working with Ian over the past few weeks, and I can tell you he will be terrific! He’s bright, energetic, and a quick learner – already tackling a number of projects for the benefit of Vermont’s captive industry. We are all looking forward to working with Ian for many years to come – and all of us will be down in Philadelphia the week after next for the monster that is known as RIMS. For those of you that are going to be there come on by the Vermont booth and say “hi” and welcome Ian to the family!

Thank you all very much, and I look forward to hearing from you.

I (heart) New York

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Finally, some good news! I just heard through Michael Horning from United Educators that the State of New York has revised their cyber regulations for financial service organizations to exclude RRGs if they are licensed in other states. That’s great news as the prospect of RRGs that may be registered in many states would have to try and comport to each state’s cyber regulations would have been a nightmare.  This also sets a good precedent as the NAIC continues to trundle down the path of creating model cyber regulations for the insurance industry. We will continue to work with Dave Provost of Vermont’s DFR and our other partners to manage the impact of this issue as moves forward. Click here to view the new cybersecurity requirements for financial services companies.

Don’t forget: VCIA is hosting a one-hour webinar on February 22nd entitled “TRIA Data Collection for Captives”. Our panel of specialists will explain how this requirement affects captive insurance companies and discuss the important latest developments. Register now at the link below. This session is designed to make the filing process more understandable to all parties involved. CPE / CLE / ICCIE credit for participation is offered as well.

Register now!

Thank you all very much, and I look forward to hearing from you!

Rich Smith
VCIA President

Thanksgiving

This upcoming week we all will be spending time with family and friends for Thanksgiving (well, at least here in the United States). I will be trundling off to my in-laws in Buffalo for some quiet time and reflection – and of course feasting and a possible snow storm.

We have had another somewhat tumultuous year in the captive industry, but I am very thankful to be part of this amazing community which year-in and year-out supports the captive insurance industry and each other.

I hope you all have a wonderful holiday and I look forward to seeing many you at VCIA’s Holiday Member Mixer at the Hilton Burlington Hotel on December 15th! And for those of you outside the borders of the US of A, happy belated Guy Fawkes Day.

Thank you all very much, and I look forward to hearing from you.

Rich Smith
VCIA President