Title 08, Title 08: Banking and Insurance

§ 4175. Definitions As used in this chapter: (1) “Account” means either of the two accounts created under section 4176 of this chapter. (2) “Affiliate” means affiliate as defined in section 3681 of this title. (3) “Association” means the Vermont Life and Health Insurance Guaranty…

§ 4176. Creation of the Association (a) There is created a nonprofit legal entity to be known as the Vermont Life and Health Insurance Guaranty Association. All member insurers shall be and remain members of the Association as a condition of their authority to transact insurance …

§ 4177. Board of Directors (a) The Board of Directors of the Association shall consist of not less than seven nor more than 11 member insurers serving terms as established in the plan of operation. Members of the Board shall be selected by member insurers subject to the approval …

§ 4178. Powers and duties of the Association (a) If a member insurer is an impaired insurer, the Association may, in its discretion and subject to any conditions imposed by the Association that do not impair the contractual obligations of the impaired insurer and that are approve…

§ 4179. Assessments (a) For the purpose of providing the funds necessary to carry out the powers and duties of the Association, the Board of Directors shall assess the member insurers, separately for each account, at such times and for such amounts as the Board finds necessary. A…

§ 4180. Plan of operation (a)(1) The Association shall submit to the Commissioner a plan of operation and any amendments to the plan necessary or suitable to ensure the fair, reasonable, and equitable administration of the Association. The plan of operation and any amendments to …

§ 4181. Duties and powers of the Commissioner (a) In addition to the duties and powers enumerated elsewhere in this chapter, the Commissioner shall: (1) Upon the request of the Board of Directors, provide the Association with a statement of the premiums in Vermont and in any othe…

§ 4182. Prevention of insolvencies (a) To aid in the detection and prevention of member insurer impairment or insolvency, it shall be the duty of the Commissioner to: (1) Notify the commissioners of all the other states within 30 days following the action taken or the date the ac…

§ 4183. Credits for assessments paid (a) A member insurer may offset against its premium tax liability to Vermont an assessment described in subsection 4179(h) of this chapter to the extent of 20 percent of the amount of the assessment for each of the five calendar years followin…

§ 4184. Miscellaneous provisions (a) This chapter shall not be construed to reduce the liability for unpaid assessments of the insureds of an impaired or insolvent insurer operating under a plan with assessment liability. (b)(1) Records shall be kept of all meetings of the Board …

§ 4185. Examination; annual report The Association shall be subject to examination and regulation by the Commissioner. The Board of Directors shall submit to the Commissioner, not later than May 1 of each year, a financial report for the preceding calendar year in a form approved…

§ 4186. Tax exemptions The Association shall be exempt from payment of all fees and all taxes levied by Vermont or any of its subdivisions, except taxes levied on real property. (Added 2023, No. 32, § 9, eff. July 1, 2023.)

§ 4187. Immunity There shall be no liability on the part of and no cause of action of any nature shall arise against any member insurer or its agents or employees, the Association or its agents or employees, members of the Board of Directors, or the Commissioner or the Commission…

§ 4188. Stay of proceedings; reopening default judgments All proceedings in which the insolvent insurer is a party in any court in Vermont shall be stayed 180 days from the date an order of liquidation, rehabilitation, or conservation is final to permit proper legal action by the…

§ 4189. Prohibited advertisement; notice to policy owners (a) No person, including a member insurer, or agent or affiliate of a member insurer, shall make, publish, disseminate, circulate, or place before the public, or cause directly or indirectly, to be made, published, dissemi…

§ 4190. Prospective application (a) This chapter shall apply to all matters relating to any impaired or insolvent insurer for which the Association first became obligated on or after July 1, 2023. (b) Matters relating to any impaired or insolvent insurer for which the Association…