Title 08, Title 08: Banking and Insurance

§ 3363. Revocation of license If such insurer violates any of the laws of this State relating to insurance companies, the Commissioner may revoke its license and cause notice thereof to be published at least one week in two daily newspapers, one of general circulation in Montpeli…

§ 3364. Authorization for investment purposes only Such insurer may make investments in this State without qualifying to do business in this State as a foreign corporation under the general corporation law or as a foreign or alien insurer under this article, provided such insurer…

§ 3365. Plan of organization Such insurers admitted to do business in this State under authority of this article shall be incorporated as stock or mutual companies as defined in section 3302 of this title. Except as provided in sections 4831 through 4856 of this title, no unincor…

§ 3366. Assets of companies (a)(1) A foreign or alien insurer authorized to do business in this State shall possess and thereafter maintain unimpaired paid-in capital or basic surplus of not less than $2,000,000.00 and, when first so authorized, shall possess and maintain free su…

§ 3367. Retaliatory provisions (a) If another state or country imposes upon or requires of a domestic insurer, association, or society, or a surety or guaranty company, or its agents doing business therein, fees, fines, penalties, deposits, obligations, or prohibitions exceeding …

§ 3368. Transacting business without certificate of authority prohibited (a) It shall be unlawful for any insurer to enter into a contract of insurance as an insurer or to transact insurance business in this State as set forth in subsection (b) of this section, without a certific…

§ 3368a. Unauthorized and misleading transactions (a) No person shall transact insurance business in this State unless the Commissioner has issued a license or certificate of authority to such person as required by section 3361 or 3368 of this title, or by chapters 123, 125, and …

§ 3369. Commissioner may enjoin unauthorized insurer Whenever the Commissioner believes, from evidence satisfactory to him or her, that any foreign or alien insurer is violating or about to violate the provisions of section 3368 of this title, the Commissioner may, through the At…

§ 3370. Service of process upon unauthorized insurer by director (a) Any act of entering into a contract of insurance as an insurer or transacting insurance business in this State as set forth in subsection (b) of section 3368 of this title, by an unauthorized foreign or alien in…

§ 3371. Limits of risk (a) No insurer shall retain any risk on any one subject of insurance, whether located or to be performed in this State or elsewhere, in an amount exceeding 10 percent of its surplus to policyholders unless otherwise authorized by the Commissioner. (b) A “su…

§ 3381. Legislative purpose and policy The purpose of this article is to subject certain insurers to the jurisdiction of courts of this State by or on behalf of insureds or beneficiaries under insurance contracts. The Legislature declares that it is a subject of concern that many…

§ 3382. Acts that constitute Secretary of State agent for service of process Any of the following acts in this State, effected by mail or otherwise, by an unauthorized foreign or alien insurer: (1) the issuance or delivery of contracts of insurance to residents of this State or t…

§ 3383. Service upon the Secretary of State notice to defendant Such service of process shall be made by delivering to and leaving with the Secretary of State or some person in apparent charge of his or her office two copies thereof and the payment to him or her of such fee as is…

§ 3384. Service upon other agents; notice to defendant Service of process in any such action, suit, or proceeding shall in addition to the manner provided in section 3383 of this title be valid if served upon any person within this State who, in this State on behalf of such insur…

§ 3386. Effect on other modes of service Nothing in sections 3382-3384 of this title shall limit or abridge the right to serve any process, notice, or demand upon any insurer in any other manner now or hereafter permitted by law. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 1, sub…

§ 3387. Prerequisites to defense of action Before any unauthorized foreign or alien insurer shall file or cause to be filed any pleading in any action, suit or proceeding instituted against it, such unauthorized insurer shall: (1) deposit with the clerk of the court in which such…

§ 3388. Postponements The court in any action, suit, or proceeding, in which service is made in the manner provided in section 3383 or 3384 of this title may, in its discretion, order such postponement as may be necessary to afford the defendant reasonable opportunity to comply w…

§ 3389. Motion to quash for improper service Nothing in section 3387 of this title is to be construed to prevent an unauthorized foreign or alien insurer from filing a motion to quash a writ or to set aside service thereof made in the manner provided in section 3383 or 3384 of th…

§ 3390. Attorney’s fees In any action against an unauthorized foreign or alien insurer upon a contract of insurance issued or delivered in this State to a resident thereof or to a corporation authorized to do business therein, if the insurer has failed for 30 days after demand pr…

§ 3421. Mutualization of stock insurer (a) A domestic stock insurer may become a mutual insurer under such plan and procedure as may be approved by the Commissioner after a hearing held substantially in accordance with the provisions of section 3305 of this title. (b) The Commiss…

§ 3422. Mutual insurers—Prohibitions A domestic mutual insurer shall not merge or consolidate with a stock insurer where the surviving corporation will be a stock insurer. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 1, subch. 4, § 2); amended 1993, No. 28, § 1, eff. May 21, 1993.…

§ 3423. Converting mutual insurer or mutual insurance holding company (a) A mutual insurer may become a stock insurer or a mutual insurance holding company may become a stock company or reorganize under such reasonable plan and procedure as may be approved by the Commissioner aft…

§ 3424. Procedure for merger Any domestic insurer subject to the prohibitions of section 3422 of this title may merge with any other insurer in the following manner: (1) The board of directors of each insurer shall, by a resolution adopted by a majority vote of the members of suc…

§ 3425. Procedure for consolidation Any domestic insurer, subject to the prohibitions of section 3422 of this title, may consolidate with any other insurer or insurers in the following manner: (1) The board of directors of each insurer shall, by a resolution adopted by a majority…

§ 3426. Effective date of merger or consolidation Upon the issuance of a certificate of merger or a certificate of consolidation by the Secretary of State, the merger or consolidation, as the case may be, shall be effected, subject to the rights of dissenting shareholders, member…

§ 3427. Voting At any meeting of the shareholders, members, or policyholders, as the case may be, held pursuant to the resolution of the board of directors for the purpose of adopting an agreement of merger or consolidation, as provided for in sections 3424 and 3425 of this title…

§ 3428. Rights of dissenting shareholders (a) If any shareholder of any insurer, a party to a merger or consolidation, who did not vote in favor of such merger or consolidation at the meeting at which the agreement of merger or consolidation was adopted by the shareholders of suc…

§ 3429. Rights of dissenting members or policyholders If not less than five percent of the members or policyholders in a mutual insurer, who did not vote in favor of such merger or consolidation at the meeting at which the agreement of merger or consolidation was adopted by the m…

§ 3430. Effect of merger or consolidation When such merger or consolidation has been effected as hereinabove provided; (1) The several insurers parties to the agreement of merger or consolidation shall be a single insurer that shall be: (A) in case of a merger, the surviving insu…

§ 3431. Merger or consolidation between domestic and foreign insurers—Requirements (a) In case of a merger or consolidation between a domestic and a foreign insurer, the articles of merger or consolidation shall be regarded as executed by the proper officers of said foreign insur…

§ 3432. Transfer of deposits If the state in which a foreign, new, surviving, or accepting insurer is incorporated or organized shall require the maintenance with any official of such state of a deposit of the legal reserve on the policies so assumed and such foreign insurer shal…

§ 3433. Certificates of fees and commissions paid Whenever articles of merger, consolidation, or reinsurance are filed with the Commissioner, there shall also be filed a certificate, executed by the president or a vice president and attested by the clerk or secretary, and under t…

§ 3434. Fees—Penalty for receiving (a) No director, officer, or member of any such insurer or insurers except as fully expressed in the affidavits, described in section 3433 of this title, shall receive any fee, commission, other compensation, or valuable consideration whatever, …

§ 3437. Redomestication; approval as a domestic insurer Any foreign or alien insurer may become a domestic insurer by complying with all of the requirements of law relative to the organization and licensing of a domestic insurer of the same type, and by filing with the Secretary …

§ 3438. Redomestication; conversion to foreign insurer Any domestic insurer may, upon the approval of and compliance with such conditions as may be imposed by the Commissioner, transfer its domicile, in accordance with the laws thereof, to any other state or jurisdiction, and upo…

§ 3439. Effects of redomestication Upon redomestication in accordance with section 3437 of this title, the foreign or alien insurer shall become a domestic insurer organized under the laws of this State and have all the rights, privileges, immunities, and powers, and be subject t…

§ 3440. Redomestication; fees An insurer becoming a domestic insurer through the redomestication procedure specified in section 3437 of this title shall pay to the Commissioner such fees as would be payable by a like domestic insurer organizing and becoming licensed or transactin…

§ 3441. Formation of a mutual insurance holding company (a) A domestic mutual insurance company, upon approval of the Commissioner, may reorganize by forming an insurance holding company based upon a mutual plan and continue the corporate existence of the reorganizing insurance c…

§ 3442. Merger of mutual insurance company into an existing mutual insurance holding company; merger and acquisition by mutual insurance holding company or subsidiary of mutual insurance holding company (a) Merger of mutual insurance company into mutual insurance holding company.…

§ 3443. Regulated as an insurance company (a) A stock insurance company resulting from the reorganization of a domestic mutual insurance company shall be regulated as a stock insurance company under this title and shall have all the rights, privileges, immunities, and powers of t…

§ 3444. Demutualization of a mutual insurance holding company (a) Sections 3422 and 3423 of this title are not applicable to a reorganization or merger pursuant to section 3441 or 3442 of this title. (b) Sections 3422 and 3423 of this title are applicable to the demutualization o…

§ 3445. Membership interest not a security A membership interest in a domestic mutual insurance holding company shall not constitute a security as defined by 9 V.S.A. § 4202a. (Added 1995, No. 167 (Adj. Sess.), § 29a.)

§ 3446. Filing of amended charters Upon the consummation of a reorganization or merger pursuant to this subchapter, duplicate originals of amended and restated charter documents adopted by the mutual holding company and the insurance company shall be filed in the office of the Se…

§ 3461. Definitions As used in this chapter: (1) “Admitted assets” means assets permitted to be reported as admitted assets on the annual statutory financial statement of the insurer for the next preceding year or as shown by a current financial statement. (2) “Appraised” or “app…

§ 3461a. General limitations and diversification requirements for property and casualty, financial guaranty and mortgage guaranty insurers (a) General five percent diversification. (1) Except as otherwise specified in this subchapter, a domestic property and casualty, financial g…

§ 3461b. General limitations and diversification requirements for life and health insurers (a) General three percent diversification. (1) Except as otherwise specified in this subchapter, a domestic life and health insurer shall not acquire, directly or indirectly through an inve…