Title 08, Title 08: Banking and Insurance

§ 2706. Penalty (a) The Commissioner may impose an administrative penalty of not more than $1,000.00 per violation upon any person who violates any provision of this chapter, any applicable rule, or any order issued by the Commissioner, plus the State’s costs and expenses for the…

§ 2707. Exemption Except as provided in this section, the provisions of this chapter shall not apply to the following: (1) a loyalty, award, or promotional gift certificate where no money or other thing of value is given in exchange for the gift certificate, provided that the gif…

§ 2708. Investigations and complaints; powers of Commissioner If the Commissioner has reason to believe that any person has violated any of the provisions of this chapter, the Commissioner may make such investigation as the Commissioner shall deem necessary, and, to the extent ne…

§ 2709. Vermont Consumer Protection Act (a) A violation of this chapter shall be deemed also a violation of the Vermont Consumer Protection Act, 9 V.S.A. chapter 63, provided that the Commissioner’s determinations concerning the interpretation and administration of the provisions…

§ 2710. Enforcement (a) The Commissioner may enforce compliance with the requirements of this chapter with respect to financial institutions as defined in subdivision 11101(32) of this title, credit unions, and all persons and entities licensed or required to be licensed under th…

§ 2711. Rules (a) The Commissioner may adopt such rules as are necessary to carry out the purposes of this chapter with respect to financial institutions, credit unions, and all persons and entities licensed or required to be licensed under this title. (b) The Attorney General ma…

§ 2751. Definitions As used in this chapter, “debt adjustment” means making an agreement with a debtor whereby the debt adjuster agrees to distribute, supervise, coordinate, negotiate, or control the distribution of money or evidences thereof among one or more of the debtor’s cre…

§ 2752. License No person shall engage in the business of debt adjustment except as authorized by this chapter and without first obtaining a license from the Commissioner. (Added 1969, No. 204 (Adj. Sess.), eff. March 23, 1970; amended 2009, No. 137 (Adj. Sess.), § 3.)

§ 2753. Application for license; additional information (a) In addition to the information required by section 2102 of this title, an application for a license under this chapter shall state or contain: (1) A description of any debt adjustment and related services previously prov…

§ 2755. Bond required (a) Each applicant shall submit to the Commissioner, with the application for a license, a bond, in such form as the Commissioner shall direct, in the amount of $50,000.00, or such greater amount as the Commissioner may determine is required by the business …

§ 2757a. Annual report; additional information In addition to the information required by section 2120 of this title, the annual report shall state or contain: (1) the number of new debt adjustment contracts entered into with Vermont residents during the preceding year, the numbe…

§ 2759. Contract with debtor (a) Prior to taking any fee or receiving any compensation, either directly or indirectly, or payment of any sum of money by the debtor, each licensee shall make a written contract between the licensee and the debtor, which contract shall be in such fo…

§ 2759a. Rescission (a) Debtor’s right to cancel. (1) In addition to any other right to revoke the contract, the debtor may cancel the debt adjustment contract until midnight of the third business day after the date on which the debtor signed the debt adjustment contract. (2) Can…

§ 2759b. Cancellation of contract A debtor may cancel a debt adjustment contract at any time without a cancellation premium or penalty. (Added 2003, No. 81 (Adj. Sess.), § 1; amended 2009, No. 137 (Adj. Sess.), § 3.)

§ 2759c. Periodic statements to debtor Periodically, but not less frequently than quarterly, the licensee shall provide the debtor with a statement showing the payments made by the debtor, how such payments have been distributed, and for each debt covered by the contract: (1) the…

§ 2760. Separate bank account for the benefit of creditors; books and records (a) Each licensee shall maintain a separate federally insured bank account for the benefit of debtors in which all payments received from debtors for the benefit of creditors shall be deposited and in w…

§ 2760a. Timely payments to creditors Licensees shall make payments to creditors in a timely manner at least once every 30 days in accordance with the contract between the licensee and the debtor. (Added 2003, No. 81 (Adj. Sess.), § 1; amended 2009, No. 137 (Adj. Sess.), § 3.)

§ 2760b. Prohibited activities (a) No person, partnership, association, corporation, or other entity, except a licensee, may make any representation, directly or indirectly, orally or in writing that he, she, or it is licensed under this chapter. (b) No licensee shall advertise i…

§ 2760c. Financial privacy The licensee shall be subject to and shall comply with subchapter 2 of chapter 200 of this title and any rules or regulations adopted in connection therewith. (Added 2003, No. 81 (Adj. Sess.), § 1; amended 2009, No. 137 (Adj. Sess.), § 3.)

§ 2761. Examinations The Commissioner shall examine or cause to be examined, with or without notice, the condition and affairs of each licensee under this chapter at least once every three years and otherwise as required or determined by the Commissioner. (Added 1969, No. 204 (Ad…

§ 2762. Fee of licensee The fee charged by the licensee shall be agreed upon in advance. The fee retained shall in no case exceed a $50.00 initial set up fee plus 10 percent of any payment received by the licensee from the debtor for the purpose of distribution to creditors. (Add…

§ 2763. Exceptions The provisions of this chapter shall not apply to the following: (1) any attorney admitted to the practice of law in this State, when engaged in such practice; (2) any financial institution as defined in subdivision 11101(32) of this title or a lender licensed …

§ 2764. Private right of action and Consumer Protection Act (a) A consumer may bring a private action against a licensee or any person that should have been licensed under this chapter for restitution because of a violation of this chapter. (b) The powers vested in the Commission…

§ 2900. Definitions As used in this chapter: (1) “Loan” means a residential mortgage loan. (2) “Servicing” means receiving a scheduled periodic payment from a borrower pursuant to the terms of a loan, including amounts for escrow accounts, and making the payments to the owner of …

§ 2901. License required (a) No person shall act as a third party loan servicer, directly or indirectly, for a loan to a Vermont borrower without first obtaining a license under this chapter from the Commissioner. (b) No license shall be required of: (1) a depository institution;…

§ 2903. Bond (a) Prior to issuance of a license, the applicant shall file with the Commissioner and shall keep in force thereafter for as long as the license remains in effect, a bond in a form and substance to be approved by the Commissioner in which the applicant shall be the o…

§ 2907. Additional bond If the Commissioner finds at any time that a licensee’s bond is insecure, exhausted, insufficient, or otherwise doubtful, the Commissioner shall require one or more additional bonds meeting the standards set forth in section 2903 of this chapter. The licen…

§ 2916. Segregated accounts (a) All amounts paid by borrowers to a licensee subject to this chapter shall be deposited in one or more accounts maintained at a federally insured depository institution and with respect to such funds, the licensee shall act as a fiduciary. Such acco…

§ 2917. Examinations The Commissioner shall examine the affairs, business, and records of each licensee under this chapter at least once every three years. (Added 2009, No. 96 (Adj. Sess.), § 1, eff. Jan. 1, 2011; amended 2019, No. 20, § 94.)

§ 2922. Prohibited acts and practices (a) It is a violation of this chapter for a person to: (1) directly or indirectly employ any scheme, device, or artifice to defraud or mislead borrowers or lenders or to defraud any person; (2) engage in any unfair or deceptive practice towar…

§ 3301. Purposes (a) Subject to the additional or varied requirements stated in this subchapter, a corporation may be formed pursuant to the general corporation law to do any and all insurance and reinsurance comprised in any one of the following numbered subdivisions: (1) “Life …

§ 3301a. Insurance defined As used in this title, “insurance” means an agreement to indemnify or otherwise assume an obligation, provide services or any other thing of value on the happening of a particular event or contingency, or to provide indemnity for loss with respect to a …

§ 3302. Plan of organization; incorporators For the purpose of this chapter, an insurance company may be incorporated as a stock insurer with its capital divided into shares and owned by the stockholders, or a mutual insurer without capital stock the governing body of which is el…

§ 3303. Mutual companies; directors, charter provisions as to The articles of association or bylaws of a mutual insurer shall set forth the manner in which its board of directors or other governing body shall be elected, and in which meetings of policyholders shall be called, hel…

§ 3304. Capital and surplus requirements To qualify for authority to transact the business of insurance, a stock insurer seeking such authorization shall possess and thereafter maintain unimpaired paid-in capital of not less than $2,000,000.00 and, when first so authorized, shall…

§ 3305. Petition; hearing Before the articles of association are transmitted to the Secretary of State, the incorporators shall petition the Commissioner to hold a public hearing, in the county where the proposed corporation is to have its principal office, to determine whether t…

§ 3306. Duties of Secretary of State, records The articles of association, the certificate, and the organization fee shall be transmitted to the Secretary of State, who shall thereupon record both the articles and the certificate. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 1, su…

§ 3307. Consideration for stock (a) The capital stock of a corporation doing any and all insurance and reinsurance comprised in any one or more of the subdivisions of section 3301 of this title shall be issued at not less than par and under any of the following conditions, subjec…

§ 3308. List of stockholders; certificate to transact business; liability of president and directors When the entire capital stock of a corporation having capital stock has been issued, a complete list of the stockholders with the name and post office address of each and the numb…

§ 3308a. Reorganization formations Notwithstanding sections 3302, 3303, 3304, 3307, 3308, and 3309 of this title, the Commissioner may permit the formation of an insurance company without capital or surplus to be merged with or into or consolidated with an existing insurance comp…

§ 3309. Mutual insurers to commence business; when (a) A corporation that, according to its charter, is not to have a capital stock shall not receive authorization to commence business until: (1) it complies with preliminary requirements for the procurement of an adequate amount …

§ 3310. Amendment of charter A corporation formed under the provisions of this chapter or by a special act of the Legislature may amend its articles of association or its charter as provided therein or in the absence of such provision by vote of three-fourths of its stockholders …

§ 3311. Quorum In the case of a mutual insurance company, the policyholders or annuitants therein, who attend a duly called meeting, shall constitute a quorum. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 1, subch. 1, § 11).)

§ 3312. Construction with other laws (a) Corporations formed under the provisions of this subchapter shall have the privileges and be subject to the provisions of the general corporation law as well as the applicable provisions contained in this part. In the event of conflict bet…

§ 3313. Proxies (a) The Commissioner may prescribe by rules and regulations, the form, content and manner of solicitation of any proxy, consent, or authorization in respect of any voting security issued by a domestic insurer as necessary or appropriate in the public interest, or …

§ 3314. Annual financial statements; reports; filing fee Notwithstanding any other provision of law, any insurer, of whatever form and description other than captive insurance companies organized under chapter 141 of this title, that is required by statute to file an annual state…