Title 08, Banking and Insurance

§ 3578a. Annual financial reporting The Commissioner shall adopt by rule the Annual Financial Reporting Model Regulation of the National Association of Insurance Commissioners, as may be amended from time to time, or in the Commissioner’s discretion a regulation substantially sim…

§ 3579. Qualified accountants (a) A certified public accountant retained to perform audits of an insurer pursuant to the annual financial reporting rule adopted by the Commissioner under section 3578a of this title: (1) shall be a member in good standing of the American Institute…

§ 3581. Purpose; scope; intent (a) The purpose of this subchapter is to provide the requirements for maintaining a risk management framework and completing an Own Risk and Solvency Assessment (ORSA) and provide guidance and instructions for filing an ORSA Summary Report with the …

§ 3582. Definitions As used in this subchapter: (1) “Insurance group” means those insurers and affiliates included within an insurance holding company system as defined in subdivision 3681(6) of this title. (2) “Insurer” shall have the same meaning as in subdivision 3681(7) of th…

§ 3583. Risk management framework An insurer shall maintain a risk management framework to assist the insurer with identifying, assessing, monitoring, managing, and reporting on its material and relevant risks. This requirement may be satisfied if the insurance group of which the…

§ 3584. ORSA requirement Subject to section 3586 of this subchapter, an insurer or the insurance group of which the insurer is a member shall regularly conduct an ORSA consistent with a process comparable to the Guidance Manual. The assessment shall be conducted no less than annu…

§ 3585. Summary report (a) Upon the Commissioner’s request and no more than once each year, an insurer shall submit to the Commissioner a summary report or any combination of reports that together contain the information described in the Guidance Manual applicable to the insurer …

§ 3586. Exemption (a) An insurer shall be exempt from the requirements of this subchapter if: (1) the insurer has annual direct written and unaffiliated assumed premium, including international direct and assumed premium but excluding premiums reinsured with the Federal Crop Insu…

§ 3587. Contents of ORSA summary report (a) The summary report shall be prepared consistent with the ORSA Guidance Manual, subject to the requirements of subsection (b) of this section. Documentation and supporting information shall be maintained and made available upon examinati…

§ 3588. Confidentiality (a) Documents, materials, or other information, including the summary report, in the possession of or control of the Department that are obtained by, created by, or disclosed to the Commissioner or any other person under this subchapter, is recognized by t…

§ 3589. Sanctions Any insurer failing without just cause to timely file the summary report as required by this subchapter shall be required, after notice and hearing, to pay a penalty of $10,000.00 for each day’s delay, to be recovered by the Commissioner, and the penalty so reco…

§ 3604. Offset [Section 3604 repealed by 1991, No. 45, § 3; but see note set out below.] (a) In all cases of mutual debts or mutual credits between the insurer and another person in connection with any action or proceeding under this chapter, such credits and debits shall be set …

§ 3611. Scope of subchapter; short title This subchapter shall apply to all kinds of direct insurance, except life, title, surety, health, credit, mortgage guaranty, and ocean marine insurance. This subchapter shall be known as the Vermont Property and Casualty Insurance Guaranty…

§ 3612. Definitions As used in this subchapter: (1) “Account” means any one of the three accounts created under section 3613 of this title. (2) “Association” means the Vermont Property and Casualty Insurance Guaranty Association created under section 3613 of this title. (3) “Comm…

§ 3613. Creation of Association There is created a nonprofit unincorporated legal entity to be known as the Vermont Property and Casualty Insurance Guaranty Association. All insurers defined as member insurers in subdivision 3612(6) of this title shall be and remain members of th…

§ 3614. Board of Directors (a) The Board of Directors of the Association shall consist of not less than five nor more than nine persons, at least three of whom shall be persons who are officers, directors, or employees of insurance companies incorporated under the laws of this St…

§ 3615. Powers and duties of Association (a) The Association shall: (1) Be obligated to the extent of the covered claims existing prior to the order of liquidation, arising within 30 days after the order of liquidation, or before the policy expiration date if less than 30 days af…

§ 3616. Plan of operation (a)(1) The Association shall submit to the Commissioner a plan of operation and any amendments thereto necessary or suitable to ensure the fair, reasonable, and equitable administration of the Association. The plan of operation and any amendments thereto…

§ 3617. Powers and duties of Commissioner (a) The Commissioner shall: (1) notify the Association of the existence of an insolvent insurer not later than three days after he or she receives notice of the determination of the insolvency and furnish to the Association a copy of any …

§ 3618. Effect of paid claims (a) Any person recovering under this subchapter shall be deemed to have assigned his or her rights under the policy to the Association to the extent of his or her recovery from the Association. Every insured or claimant seeking the protection of this…

§ 3619. Nonduplication of recovery (a) Any person having a claim against an insurer under any provision in an insurance policy other than policy of an insolvent insurer that is also a covered claim, shall be required to exhaust first his or her right under such policy. Any amount…

§ 3620. Prevention of insolvencies To aid in the detection and prevention of insurer insolvencies: (1) It shall be the duty of the Board of Directors, upon majority vote, to notify the Commissioner of any information indicating any member insurer may be insolvent or in a financia…

§ 3621. Examination of Association The Association shall be subject to examination and regulation by the Commissioner. The Board of Directors shall submit, not later than March 30 of each year, a financial report for the preceding calendar year in a form approved by the Commissio…

§ 3622. Tax exemption The Association shall be exempt from payment of all fees and all taxes levied by this State or any of its subdivisions except taxes levied on real or personal property. (Added 1969, No. 279 (Adj. Sess.), § 14.)

§ 3623. Recognition of assessments in rates The rates and premiums charged for insurance policies to which this subchapter applies shall include amounts sufficient to recoup a sum equal to the amounts paid to the Association by the member insurer less any amounts returned to the …

§ 3624. Immunity There shall be no liability on the part of, and no cause of action of any nature shall arise against, any member insurer, the Association or its agents or employees, the Board of Directors, or the Commissioner or his or her representatives for any action taken by…

§ 3625. Stay of proceedings; reopening of default judgment All proceedings in which the insolvent insurer is a party or is obligated to defend a party in any court in this State shall be stayed for up to six months and such additional time thereafter as may be determined by the c…

§ 3626. Prohibition against advertising of membership in Association A person who makes, publishes, or circulates, or causes to be made, published or circulated, any statement that uses the existence of the Association for the purpose of sales, solicitation, or inducement to purc…

§ 3634a. Credit for reinsurance (a) Purpose. It is the purpose of this section to protect the interest of insureds, claimants, ceding insurers, assuming insurers, and the public generally. The General Assembly hereby declares its intent is to ensure adequate regulation of insurer…

§ 3635. Insolvency of ceding company (a) No credit shall be allowed, as an admitted asset or deduction from liability, to any ceding insurer for reinsurance, unless the reinsurance contract provides, in substance, that in the event of the insolvency of the ceding insurer, the rei…

§ 3636. Reinsurance contract In the event of the rehabilitation, receivership, or liquidation of a ceding insurer, no person shall have any rights against the reinsurer of such ceding insurer that are not specifically set forth in the contract of reinsurance or in a specific agre…

§ 3641. Claims, rights, title, and interests of nonresidents When by the terms of any policy of insurance, annuity contract, or contract supplemental to any policy of insurance or annuity contract, issued by an insurance company organized under the laws of this State, any claim, …

§ 3642. Liability for payments to nonresidents An action shall not be maintained against any such insurance company upon any right of action arising out of an insurance policy, annuity contract, or contract supplemental to any insurance policy or annuity contract, issued by such …

§ 3661. Cease and desist powers; prosecutions and penalties (a) When the Commissioner believes that an insurer or an officer or agent thereof, or any other person, has violated the law, an administrative rule of the Department, or an order of the Commissioner relating to insuranc…

§ 3662. Nonpayment of judgment; penalty In addition to accrual of interest and costs under section 3665 of this title, if a judgment against an insurance company is not paid within 30 days after demand made upon an agent of such company, and notice thereof given to the Commission…

§ 3663. Minimum limitation on actions; void policy provisions A policy of fire, life, accident, liability, or burglary insurance, or an indemnity, surety, or fidelity contract or bond issued or delivered in this State by an insurance company doing business herein, shall not conta…

§ 3664. Forms; filing proof of loss and other documents; waiver of filing Insurance companies, societies, or associations, or insurance adjusters appointed by said companies, societies, or associations, shall furnish in form for completion by the claimant, as defined in section 3…

§ 3665a. Timely payment of property and casualty insurance claims; interest (a) This section applies to policies of property, casualty, surety, and title insurance, as defined in section 3301 of this title. It does not apply to workers’ compensation insurance. As used in this sec…

§ 3665b. Timely payment of life insurance claims and annuity death benefits; interest (a) This section applies to policies of life insurance and contracts of annuity. As used in this section, a “beneficiary” means any person making a claim against a policy of life insurance or fo…

§ 3665c. Damages An insurance company, including a society and an association, is responsible for payment of any consequential damages, including all penalties or costs, caused by improper delay in payment or settlement of claims to claimants, loss payees, or beneficiaries under …

§ 3666. Rules; methods of notice Notwithstanding the requirements under sections 3883, 4226, and 4714 of this title, the Commissioner of Financial Regulation shall adopt rules specifying the methods by which a notice to a party required under section 3880, 3881, 4224, 4225, 4712,…

§ 3671. Disclosure of information (a) Upon written request, an insurance company, its agents, adjusters, or brokers shall furnish to a law enforcement officer, State’s Attorney, or the Attorney General any and all information pertaining to a fire loss under investigation, includi…

§ 3672. Immunity An insurance company, its agents, adjusters, or brokers shall be immune from civil liability as a result of the furnishing in good faith of information to any law enforcement officer, State’s Attorney, or the Attorney General in accordance with the provisions of …

§ 3673. Penalty for noncompliance In the event that an insurance company, its agents, adjusters, or brokers fail to comply with the provisions of section 3671 of this title, the Commissioner may suspend the right of the company to do business in this State until it does so comply…

§ 3681. Definitions As used in this subchapter: (1) “Affiliate” of, or person “affiliated” with, a specific person, means a person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the person specified…

§ 3682. Subsidiaries of insurers (a) Any domestic insurer, either by itself or in cooperation with one or more persons, may organize or acquire one or more subsidiaries engaged in the following kinds of business: (1) any kind of insurance business authorized by the jurisdiction i…