Title 08, Title 08: Banking and Insurance

§ 3861. Discrimination and rebates prohibited A fire or casualty insurance company doing business in the State shall not make or permit any distinction or discrimination in favor of individuals, between insureds of the same class, in the amount or payment of premiums, or rates ch…

§ 3862. Minimum capital stock A domestic stock fire insurance company shall not be organized with a capital stock less than $200,000.00 paid in, in cash. (Amended 1965, No. 65, eff. May 19, 1965.)

§ 3864. Penalty for violation of sections 3463 and 3862 Such an insurance company failing to comply with the requirements of sections 3463 and 3862 of this title, within 60 days after notice from the Commissioner, shall reinsure its outstanding risks and proceed to liquidate its …

§ 3865. Mill mutual; fees A mutual fire insurance company of another state that insures only factories or mills, or property connected with such factories or mills, may be admitted to transact business in this State upon complying with the conditions set forth in the statutory la…

§ 3866. Returns, rate of tax, exemption Such companies shall also make annual returns to the Commissioner of Taxes in form satisfactory to him or her, and shall pay to the Commissioner of Taxes annually, in the month of February, a tax at the rate of two percent on gross premium …

§ 3867. Proof of loss A fire insurance policy shall not be void by reason of failure to make and deliver a proof of loss to the insurer, until the insurer notifies the insured in writing to make and deliver proof of loss in accordance with the terms of the policy and the insured …

§ 3868. When loss due and payable The amount of the loss under a fire insurance policy shall be due and payable in 60 days after receipt by the insuring company of satisfactory proofs, and the insured may commence an action after the expiration of that time to recover the same.

§ 3869. Contracts considered made in Vermont Every fire insurance contract written on any property located in this State shall be deemed to be made, executed, and delivered in this State.

§ 3879. Cancellation of fire and casualty insurance (a) A notice of cancellation of a policy, to which section 3880 of this title applies, unless that policy is otherwise controlled by chapter 113, subchapter 2 of this title, shall be effective only if it is based on one or more …

§ 3880. Notice of cancellation (a) No notice of cancellation of a fire, casualty, marine, or multi-peril policy of insurance, unless otherwise provided and controlled by chapter 113, subchapter 2 of this title, shall be effective unless mailed or delivered by the insurer to the n…

§ 3881. Notice of nonrenewal No insurer shall refuse to renew a policy of insurance at its expiration or anniversary if written for a term of more than one year unless such insurer or its agent shall mail or deliver to the named insured at the address shown in the policy, at leas…

§ 3882. Renewal policies (a) If the insurer has the necessary information to issue the renewal policy, the insurer shall confirm in writing at least 45 days prior to expiration its intention to renew the policy and the premium at which the policy is to be renewed. The insured sha…

§ 3883. Notice requirements When notice required under section 3880 or 3881 of this title is provided by mail, such notice shall be by certified mail, except that in the case of cancellation for nonpayment of premium, notice shall be by certified mail, certificate of mailing, or …

§ 3884. Required renewals; continuation of agents’ contracts and brokers’ accounts (a) In the event of an insurer’s cancellation of an agent’s contract or a broker’s account placement authority with such insurer, each policyholder of such an agent or broker shall be entitled to r…

§ 3885. Penalties A person who violates a provision of section 3879, 3880, 3881, 3882, 3883, or 3884 of this title may be subject to an administrative penalty of $2,000.00 for each violation. (Added 1995, No. 167 (Adj. Sess.), § 8a.)

§ 3911. Incorporators Sixty or more persons residing in the State of Vermont who shall each own in good faith real estate of not less than $20,000.00 in value, and collectively own in good faith insurable real estate in the State of Vermont to the value of $1,200,000.00 or more, …

§ 3912. Contents of declaration Such declaration shall be executed and acknowledged by each of such persons and shall state their intention to form a cooperative insurance corporation for the purpose of engaging in the business of insurance, pursuant to the following provisions, …

§ 3913. Bylaws to be filed There shall be filed with such declaration a copy of the bylaws of such corporation, together with the names and post office addresses of the officers and directors thereof for the first year, and such other information as the Commissioner shall require…

§ 3914. Statement as to applications At the time of such filing, or within one year thereafter, such persons, or those who have been designated as the president and the secretary of such corporation, may file with the Commissioner a sworn statement to the effect that applications…

§ 3915. Issuance of certificate of authority If all the requirements of law have been complied with and the Commissioner is satisfied, after investigation, that such statement is true, he or she shall thereupon file such declaration and cause it to be recorded in his or her offic…

§ 3916. Name, status, and powers Corporations to which certificates of authority are so issued shall be known as cooperative insurance corporations and may write the kinds of insurance enumerated in subdivisions 3301(a)(2)-(8), and (a)(10) of this title, provided the corporation’…

§ 3920. Doing business as an assessment cooperative corporation or a nonassessment cooperative corporation (a) An assessment cooperative corporation shall not be authorized or permitted to begin or do business until it has bona fide applications for insurance on property whose to…

§ 3925. Bylaws; compulsory provisions The bylaws of a cooperative insurance corporation to which a certificate of authority is issued shall include substantially the following provisions: (1) The corporate powers of such corporation shall be exercised by a board of directors, who…

§ 3926. Policy provisions The policies issued by a cooperative insurance corporation shall conform to the regulations prescribed therefor by the Commissioner. Each such policy shall indicate clearly, in words prominently displayed at the top of the first page or across the page t…

§ 3927. Assessment cooperative insurance corporations The following provisions shall affect such corporations doing business on the assessment plan: (1) Such corporation may issue policies of insurance as enumerated in section 3916 of this title. (2) Such corporation may classify…

§ 3929. Loss payment A nonassessment cooperative insurance corporation may borrow on the credit of the corporation sufficient funds to pay any loss. (Amended 1981, No. 6, § 10.)

§ 3930. Nonassessment cooperative insurance corporations to commence business (a) When a cooperative insurance corporation reaches and thereafter maintains an unimpaired free surplus position of no less than $1,000,000, it may apply to the Commissioner for relief from the provisi…

§ 3931. Application of provisions (a) All the provisions of this part, insofar as consistent with the provisions of this subchapter, shall apply to cooperative insurance corporations. (b) Cooperative fire insurance corporations formed and operated under the provisions set forth i…

§ 3932. Definitions For the purposes of this subchapter: (1) “Regular assessment” shall mean that amount charged to members, in advance or arrears, to pay ordinary losses and expenses for one year or the term of the policy and to make a contribution to surplus. (2) “Assessment co…

§ 3961. Valuation of property Whenever a fire insurance company shall write a policy covering a building in this State and shall attach thereto the so-called coinsurance clause, or any similar clause requiring the insured to carry insurance in amount equal to any percentage of th…

§ 3962. Application to Commissioner In case the insuring company and the insured do not agree on the valuation, as provided in section 3961 of this title, the insured may file with the Commissioner a request for a valuation, which shall contain a complete description of the build…

§ 3963. Time and place for making valuation Upon the receipt of such a request, the Commissioner shall appoint a time and place for making such valuation that shall be not later than 15 days thereafter, unless an earlier date is agreed upon by the parties interested, and he or sh…

§ 3964. Appointment of appraisers to determine valuation The owner of a building and the insurance company or agent shall each file with the Commissioner a list of not less than three disinterested persons competent to act as appraisers of the building described in the notice. Th…

§ 3965. Appraisers’ award and expenses An award in writing of any two appraisers, when filed with the Commissioner, shall determine the sound value of the building. Each of the two appraisers first appointed shall be paid by the party nominating him or her and the third appraiser…

§ 3966. Duration of valuation fixed The value of any building fixed as provided in sections 3964 and 3965 of this title shall be considered the true value of the building during the term for which any fire insurance policy is issued to cover thereon, if issued within three years …

§ 3967. Effect on rate The rate charged for a fire insurance policy covering a building valued in accordance with the provisions of section 3964 of this title shall not be increased above the rate fixed for the same form of policy, containing or having attached thereto a coinsura…

§ 3968. Penalty for violations If an insurance company violates a provision of sections 3961-3967 of this title or if the Commissioner is satisfied, after a hearing, that a company declines or refuses to write insurance on any building because of the requirement that the value of…

§ 4001. Assessments; accumulations; limitation Domestic mutual fire insurance companies, in any year in which the assessments required to pay losses and expenses would not equal five percent of the face of its premium notes, may lay assessments not to exceed five percent and carr…

§ 4002. Use of fund In a year in which the fire losses and expenses of a company accumulating a surplus under the provisions of section 4001 of this title shall exceed the amount of a three percent assessment on the face of the premium notes assessable for such losses and expense…

§ 4011. Definitions As used in this chapter: (1) “Covered individual” means an individual who is covered by a health insurance plan, whether as the primary subscriber or policyholder or as a dependent, employee, or employee’s dependent under the plan. (2) “Health care services” m…

§ 4012. Compliance with federal law (a) Except as otherwise provided in this title, health insurers, hospital and medical service corporations, and health maintenance organizations that issue, sell, renew, or offer health insurance plans in Vermont shall comply with the requireme…

§ 4013. Discrimination prohibited No health insurer shall make or permit any unfair discrimination between individuals of substantially the same hazard in the amount of premium rates charged for any health insurance plan or in the benefits payable under the plan; provided, howeve…

§ 4015. Penalties for violations The Commissioner may impose an administrative penalty of up to $750.00 on any person who intentionally violates any provision of this chapter or any order of the Commissioner made in accordance with this chapter. The Commissioner may also suspend …

§ 4016. Appeal (a) Any person aggrieved by any action of the Commissioner may obtain a review by appeal to the Superior Court of Washington County. The appeal shall be based on the record of the proceedings before the Commissioner and shall not be limited to questions of law. If …

§ 4017. Exemption from attachment and trustee process So much of any benefits under all policies of health insurance as does not exceed $200.00 for each month during any period of disability covered by the policy shall not be liable to attachment, trustee process, or other proces…

§ 4018. Third-party ownership Nothing in this chapter shall be construed as preventing a person other than the covered individual with proper insurable interest from making application for and owning a policy covering the covered individual or from being entitled under such a pol…