Title 08, Title 08: Banking and Insurance

§ 3463a. Valuation of investments Investments of domestic insurers shall be valued in accordance with the valuation procedures established by the National Association of Insurance Commissioners, unless the Commissioner requires or finds another method of valuation that is not inc…

§ 3465. Exemption from investment limitations (a) Nothing in this chapter or other statute law of the State shall be construed as denying to an insurer the right to invest its funds, operate a business, manage or deal in property, or take any other action over whatever period of …

§ 3467. Qualification of investments (a) Any restriction, exclusion, or provision appearing in any section of this chapter shall apply only with respect to the authorization of the particular section in which it appears and shall not be applicable to any other section. The qualif…

§ 3468. Investments qualified under prior law The provisions of this chapter shall not affect or operate to disqualify any investment that an insurer has made or that it is legally obligated to acquire prior to the effective date of this subchapter; provided, however, that an ins…

§ 3469. Loans to directors and officers—Restrictions No domestic insurer shall invest in or loan upon any property, directly or indirectly, whether real or personal, in which any officer or director of such insurer has a financial interest, nor shall any such insurer make a loan …

§ 3470. Mortgage loans to minors An insurer is hereby authorized to make loans secured by a mortgage on real estate to a husband and wife where either or both is a minor 18 years old or over and where said real estate is to be used as a home by said husband and wife, subject to s…

§ 3471. Mortgages on real and personal property as liens; priorities Any mortgages acquired by an insurer on real or personal property so written as to secure a present debt and any future advances by the mortgagee or an assignee shall be a lien upon the mortgaged property for th…

§ 3472. Earnings statements and income ratios—Special situations In the application of the provisions and requirements of this subchapter to determine whether a particular investment in any corporation, association, or institution is qualified the following shall be applicable: (…

§ 3501. Life insurance and annuities For all life insurance policies and annuity contracts, the insurer shall maintain reserves as required by chapter 103, subchapter 4 of this title. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 1, subch. 6, § 1).)

§ 3502. Insurance—Other life insurance and annuities For all policies of insurance other than life insurance and annuities, the insurer shall maintain reserves that shall place a sound value on its liabilities under such policies and that shall not be less than the reserves accor…

§ 3503. Deposits of domestic insurer doing foreign business (a) A domestic insurer may deposit with the Treasurer of this State or with the comptroller or chief financial officer of another state or country funds or securities of the insurer that the laws of such state or country…

§ 3504. Pension system An insurance company now or hereafter organized and doing business under the laws of this State, in addition to all other powers granted to it by law, may provide a pension in pursuance of the terms of a retirement plan, adopted by its board of directors an…

§ 3541. Filing and approval of forms (a) No basic insurance policy, certificate, or annuity contract form, or application form where written application is required and is to be made a part of the policy or contract, or printed rider or endorsement form or form of renewal certifi…

§ 3542. Grounds for disapproval The Commissioner shall disapprove any form filed under this subchapter or withdraw any previous approval thereof, only on one or more of the following grounds: (1) if it is in any respect in violation of or does not comply with this act; (2) if it …

§ 3543. Existing forms and filings Every form of insurance or annuity document or other filing referred to in section 3541 of this title lawfully in use immediately prior to July 1, 1968 may continue to be so used or be effective until the Commissioner otherwise prescribes; excep…

§ 3552. Fees assessed by the National Association of Insurance Commissioners A company domiciled in this State and licensed by the Commissioner of Financial Regulation under this title, including captive insurance companies and risk retention groups licensed under chapter 141 of …

§ 3561. Annual statement (a) Each domestic, foreign, and alien insurance company doing business in this state shall annually submit to the Commissioner a statement of its financial condition, verified by oath of two of its executive officers. The statement shall be prepared in ac…

§ 3562. Time reports due Reports of all insurance companies shall be made annually, on or before March 1 for the year ending December 31, or within any extension of time not to exceed 30 days that the Commissioner for good cause may have granted. Whenever the Commissioner deems i…

§ 3563. Examination of companies; fees The Commissioner shall thoroughly inspect and examine the affairs of each domestic insurer to ascertain its financial condition, its ability to fulfill its obligations, and whether it has complied with the provisions of law. Such an inspecti…

§ 3564. Examination of foreign insurers; expenses (a) At least once every three years and when the Commissioner determines it to be prudent for the protection of policyholders in this State, he or she shall, in like manner, visit and examine or cause to be visited and examined by…

§ 3565. Examination of officers and books (a) The Commissioner, inspecting an insurance company, may require its officers, or any agent thereof, to exhibit books kept by them relating to their business and may examine under oath such agents and officers and other persons as he or…

§ 3566. Penalty for refusal The Commissioner may suspend, revoke, or nonrenew the license of any company if the company, by its officers, directors, employees, or agents, refuses to submit to examination or to comply with any reasonable written request of the examiners. Any such …

§ 3567. Liquor liability insurance records (a) All insurers licensed to sell insurance, including nonadmitted insurers with whom certain types of insurance may be placed as permitted by chapter 138 of this title, shall submit the following liquor liability insurance statistics to…

§ 3568. Preservation of records (a) Every domestic and foreign insurer shall preserve their business records in accordance with the rules adopted under this section. (b) The Commissioner may by rule require insurers to preserve any records relating to the business of insurance as…

§ 3569. National Association of Insurance Commissioners filing requirements (a) Each domestic, foreign, and alien insurer who is authorized to transact insurance in this State shall annually on or before March 1 of each year, or within any extension of time not to exceed 30 days …

§ 3570. Immunity In the absence of actual malice, members of the National Association of Insurance Commissioners, their duly authorized committees, subcommittees, and task forces, their delegates, National Association of Insurance Commissioners’ employees, and all others charged …

§ 3571. Confidentiality All financial analysis ratios and examination synopses concerning insurance companies that are submitted to the Department by the National Association of Insurance Commissioners’ Insurance Regulatory Information System are confidential and may not be discl…

§ 3572. Revocation of certificate of authority The Commissioner may suspend, revoke, or refuse to renew the certificate of authority of any insurer failing to file its annual statement when due or within any extension of time that the Commissioner, for good cause, may have grante…

§ 3573. Conduct of examinations (a) Upon determining that an examination should be conducted, the Commissioner or the Commissioner’s designee shall issue an examination order appointing one or more examiners to perform the examination and instructing them as to the scope of the e…

§ 3574. Examination reports (a) General description. All examination reports shall be comprised of only facts appearing upon the books, records, or other documents of the company, its agents or other persons examined, or as ascertained from the testimony of its officers or agents…

§ 3575. Conflict of interest (a) No examiner may be appointed by the Commissioner if such examiner, either directly or indirectly, has a conflict of interest or is affiliated with the management of or owns a pecuniary interest in any person subject to examination under this subch…

§ 3576. Immunity from liability (a) No insurer nor any of its officers, employees, or agents shall have a cause of action against an authorized representative of the Commissioner or an examiner appointed by the Commissioner as a result of any statements made or work performed in …

§ 3577. Requirements for actuarial opinions (a) Each licensed insurance company shall include on or attached to its annual statement submitted under section 3561 of this title a statement of a qualified actuary, entitled “statement of actuarial opinion,” setting forth an opinion …

§ 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…