Title 08, Title 08: Banking and Insurance

§ 8205. Policyholder rights (a) Policyholders shall have the right to accept or reject the transfer and novation of their contracts of insurance. Policyholders electing to reject the assumption transaction shall return to the transferring insurer the pre-addressed, postage-paid r…

§ 8206. Effect of consent If a policyholder consents or is deemed to have consented to the transfer pursuant to section 8205 of this title or if the transfer is effected under subsection 8207(b) of this title, there shall be a novation of the contract of insurance subject to the …

§ 8207. Commissioner’s powers (a) Except as provided in subsection 8204(f) of this title, the Commissioner shall approve all forms used by an insurer in a transaction under this subchapter, including the notice of transfer, the assumption contract, any related reinsurance or inde…

§ 8208. Form of notice of transfer NOTICE OF TRANSFERIMPORTANT: THIS NOTICE AFFECTS YOUR CONTRACTRIGHTS. PLEASE READ IT CAREFULLY.Transfer of Policy The AB Insurance company has agreed to replace us as your insurer under (insert policy/certificate name and number) effective (inse…

§ 8301. Definitions As used in this chapter: (1) “Adjusted risk-based capital report” means a risk-based capital report that has been adjusted by the Commissioner in accordance with subsection 8302(e) of this title. (2) “Commissioner” means the Commissioner of Financial Regulatio…

§ 8302. Risk-based capital report (a) Each domestic insurer shall annually prepare and submit to the Commissioner a report of its risk-based capital level for the calendar year just ended. The report shall be filed prior to March 1 each year and shall be in the form and contain s…

§ 8303. Company action level event (a) “Company action level event” means any of the following events: (1) The filing of a risk-based capital report by an insurer that indicates that: (A) the insurer’s total adjusted capital is greater than or equal to its regulatory action level…

§ 8304. Regulatory action level event (a) The following are deemed to be regulatory action level events and subject to the requirements of this section: (1) A risk-based capital report or final adjusted risk-based capital report that indicates that the insurer’s total adjusted ca…

§ 8305. Authorized control level event (a) The following are deemed to be authorized control level events and subject to the requirements of this section: (1) A risk-based capital report or final adjusted risk-based capital report that indicates that the insurer’s total adjusted …

§ 8306. Mandatory control level event (a) A risk-based capital report or final adjusted risk-based capital report that indicates that the insurer’s total adjusted capital is less than its mandatory control level risk-based capital shall be a mandatory control level event and subj…

§ 8307. Hearings Upon receipt of any notice required under subsection 8302(e), 8303(c) or (d), subdivision 8304(a)(4) or (5), or subsection 8304(c) of this title, any insurer aggrieved by any action taken under those sections may appeal to the Commissioner within five days of rec…

§ 8308. Confidentiality and prohibition on announcements (a) All risk-based capital reports, to the extent the information in the report is not required to be set forth in a publicly available annual statement schedule, and risk-based capital plans, including the results or repor…

§ 8309. Supplemental provisions (a) The provisions of this chapter are in addition to any other provisions of the laws of this State and shall not preclude or limit any other powers or duties of the Commissioner under such laws, including chapter 145 of this title. (b) The Commis…

§ 8310. Foreign insurers (a) A foreign insurer shall, upon the written request of the Commissioner, submit to the Commissioner a risk-based capital report for the calendar year just ended. The requested report shall be filed not later than the later of 15 days from the receipt of…

§ 8311. Notices All notices by the Commissioner to an insurer under this chapter shall be effective upon mailing if sent by registered or certified mail or, in the case of any other type of transmission, shall be effective upon the insurer’s receipt of such notice. (Added 1993, N…

§ 8312. Confidentiality of risk-based capital reports All risk-based capital reports concerning insurance companies that are not included in section 8308 of this title that are submitted to the Department by the NAIC or other states are confidential and shall not be disclosed by …

§ 8313. Immunity There shall be no liability on the part of and no cause of action shall arise against the Commissioner or the Department of Financial Regulation or its employees or agents for any action taken by them in the performance of their powers and duties under this chapt…

§ 8500. Definitions As used in this chapter: (1) “Advertisement” means any material designed to create public interest in a product or induce the public to purchase, increase, modify, reinstate, borrow on, surrender, replace, or retain a policy as more specifically defined in the…

§ 8501. Establishment of the Commission and venue (a) The compacting states hereby create and establish a joint public agency known as the “Interstate Insurance Product Regulation Commission.” Pursuant to section 8502 of this chapter, the Commission will have the power to develop…

§ 8502. Powers of the Commission The Commission shall have the following powers: (1) To adopt rules, pursuant to section 8505 of this chapter, which shall have the force and effect of law and shall be binding in the compacting states to the extent and in the manner provided in th…

§ 8503. Organization of the Commission (a) Membership. Each compacting state shall have and be limited to one member. Each member shall be qualified to serve in that capacity pursuant to applicable law of the compacting state. Any member may be removed or suspended from office as…

§ 8504. Meetings and acts of the Commission (a) The Commission shall meet and take such actions as are consistent with the provisions of this compact and the bylaws. (b) Each member of the Commission shall have the right and power to cast a vote to which that compacting state is …

§ 8505. Rules and operating procedures; rulemaking functions of the Commission and opting out of uniform standards (a) Rulemaking authority. The Commission shall adopt reasonable rules, including uniform standards, and operating procedures in order to effectively and efficiently …

§ 8506. Commission records and enforcement (a) The Commission shall adopt rules establishing conditions and procedures for public inspection and copying of its information and official records, except such information and records involving the privacy of individuals and insurers’…

§ 8507. Dispute resolution The Commission shall attempt, upon the request of a member, to resolve any disputes or other issues that are subject to this compact and that may arise between two or more compacting states, or between compacting states and noncompacting states, and the…

§ 8508. Product filing and approval (a) Insurers and third-party filers seeking to have a product approved by the Commission shall file the product with, and pay applicable filing fees to, the Commission. Nothing in this chapter shall be construed to restrict or otherwise prevent…

§ 8509. Review of Commission decisions regarding filings (a) Not later than 30 days after the Commission has given notice of a disapproved product or advertisement filed with the Commission, the insurer or third-party filer whose filing was disapproved may appeal the determinatio…

§ 8510. Finance (a) The Commission shall pay or provide for the payment of the reasonable expenses of its establishment and organization. To fund the cost of its initial operations, the Commission may accept contributions and other forms of funding from the National Association o…

§ 8511. Compacting states; effective date and amendment (a) Any state is eligible to become a compacting state. (b) The compact shall become effective and binding upon legislative enactment of the compact into law by two compacting states; provided the Commission shall become eff…

§ 8512. Withdrawal (a) Once effective, the compact shall continue in force and remain binding upon each and every compacting state; provided, that a compacting state may withdraw from the compact (“withdrawing state”) by enacting a statute specifically repealing the statute that …

§ 8513. Default (a) If the Commission determines that any compacting state has at any time defaulted (“defaulting state”) in the performance of any of its obligations or responsibilities under this compact, the bylaws or duly adopted rules or operating procedures, after notice an…

§ 8514. Dissolution of compact (a) The compact dissolves effective upon the date of the withdrawal or default of the compacting state that reduces membership in the compact to one compacting state. (b) Upon the dissolution of this compact, the compact becomes null and void and sh…

§ 8515. Severability and construction (a) The provisions of this compact shall be severable and if any phrase, clause, sentence, or provision is deemed unenforceable, the remaining provisions of the compact shall be enforceable. (b) The provisions of this compact shall be liberal…

§ 8516. Other laws (a) Nothing in this chapter prevents the enforcement of any other law of a compacting state, except as provided in subsection (b) of this section. (b) For any product approved or certified to the Commission, the rules, uniform standards, and any other requireme…

§ 8517. Binding effect of this compact (a) All lawful actions of the Commission, including all rules and operating procedures adopted by the Commission, are binding upon the compacting states. (b) All agreements between the Commission and the compacting states are binding in acco…

§ 10101. Application of consumer protection chapter Except as otherwise provided in this chapter, the provisions of this chapter shall apply to all financial institutions as defined in subdivision 11101(32) of this title, licensed lenders, mortgage brokers, mortgage loan originat…

§ 10102. Penalties The provisions of chapter 201, subchapter 6 of this title shall apply to any violation of this chapter, unless the section or subchapter that is the subject of the violation contains its own penalty. The procedures in chapter 201, subchapter 6 of this title sha…

§ 10201. Statement of policy on financial privacy It is the policy of this State to protect the privacy of customers of financial institutions without unduly inhibiting the free flow of commerce or legitimate law enforcement activities. (Added 1999, No. 153 (Adj. Sess.), § 2, eff…

§ 10202. Definitions As used in this subchapter: (1) “Account verification service” means any person who, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of: (A) assembling information on the frequency and locati…

§ 10203. Disclosure of financial records prohibited Except as otherwise expressly provided in this subchapter, a financial institution, its officers, employees, agents, and directors shall not disclose to any person any financial information relating to a customer. Financial inst…

§ 10204. Exceptions This subchapter does not prohibit any of the activities listed in this section. This section shall not be construed to require any financial institution to make any disclosure not otherwise required by law. This section shall not be construed to require or enc…

§ 10205. Penalties In addition to the authority provided under sections 11601, 11602, and 11603 of this title, the Commissioner may impose an administrative penalty of not more than $1,000.00 for each violation of this subchapter resulting from willful conduct or from a failure b…

§ 10206. Lead solicitations (a) As used in this section, “consumer” means a natural person residing in this State. (b) A person shall not use the name, trade name, or trademark of any financial institution in any written or oral advertisement or solicitation to a specifically ide…

§ 10301. Community reinvestment reports Every financial institution subject to the Federal Community Reinvestment Act of 1977 (12 U.S.C. § 2901) as amended shall provide to the Commissioner a copy of any report issued with respect to such financial institution under that act. If …

§ 10302. Automated teller machines (a) The owner of an automated teller machine or other remote service unit located or to be located in this State shall, using a form prescribed by the Commissioner: (1) provide the ownership and location of each machine or unit at least 30 days …

§ 10402. Lending reports, disclosures, and standards An entity subject to this chapter shall be subject to and comply with the provisions of 9 V.S.A. chapter 4. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)