Title 08, Title 08: Banking and Insurance

§ 4682. Scope This chapter applies to all kinds of insurance written on risks in this State by any insurer authorized to do business in this State, except: (1) life insurance; (2) annuities; (3) accident and health insurance; (4) ocean marine insurance; (5) reinsurance; and (6) a…

§ 4683. Definitions As used in this chapter: (1) “Advisory or service organization” means any person or organization that assists insurers as authorized by section 4690 of this title, but such an organization shall not include joint underwriting organizations, actuarial or legal …

§ 4684. Competitive market (a) A competitive market in a type of insurance subject to this chapter is presumed to exist unless: (1) the Commissioner, after notice and hearing, determines and orders that a reasonable degree of competition does not exist in the market; (2) the aver…

§ 4685. Rate standards (a) General. Rates shall not be excessive, inadequate, or unfairly discriminatory. (b) Excessiveness. (1) Competitive market. A rate in a competitive market is not excessive. (2) Noncompetitive market. Rates in a noncompetitive market are excessive if they …

§ 4686. Rating methods or criteria In determining whether rates comply with the excessiveness standard in a noncompetitive market under subdivision 4685(b)(2) of this title, the inadequacy standard under subsection 4685(c) of this title and the unfair discrimination standard unde…

§ 4687. Workers’ compensation and employers’ liability insurance; uniform administration of classifications; reporting of rates and other information (a) Every workers’ compensation and employers’ liability insurer shall adhere to the uniform classification system and uniform exp…

§ 4688. Filing of rates and other rating information (a) Filings as to competitive markets. Except with respect to filings submitted pursuant to section 4687 of this title, in a competitive market, every insurer shall file with the Commissioner all rates and supplementary rate in…

§ 4688a. Filing fees Each filing submitted to the Commissioner pursuant to section 4687 or 4688 of this title shall be accompanied by payment to the Commissioner of a nonrefundable fee of $50.00. A minimum fee of $150.00 shall accompany each such filing if submitted by an advisor…

§ 4689. Approval or disapproval of rates (a) Timing of approval or disapproval. (1) A rate may be disapproved at any time subsequent to the effective date. (2) A rate subject to prefiling may also be disapproved before the effective date. (3) A rate for a residual market in which…

§ 4690. Licensing, operation, services, and activities of advisory or service organizations (a) License required. No person or organization may provide any service listed in subsection (b) of this section relating to any insurance subject to this chapter, and no insurer shall uti…

§ 4691. Filing of records and reports; exchange of information (a) Except as provided in section 4687 of this title, the Commissioner shall review and approve, as appropriate, reasonable rules and plans for recording and reporting of loss and expense experience in appropriate for…

§ 4692. Joint underwriting; pool and residual market activities (a) Authorization. Notwithstanding section 4693 of this title, insurers participating in joint underwriting, pools, or residual market mechanisms for the purpose of affording insurance under a method of distributing …

§ 4693. Agreements to adhere (a) Except as necessary to comply with the requirements of section 4687 of this title, no insurer may agree with any other insurer or with an advisory or service organization to adhere to or use any rate or supplementary rate information. The fact tha…

§ 4694. Residual market mechanism status All insurers authorized to write insurance that is subject to this chapter may establish and participate in a plan providing for the equitable apportionment among them of insurance that may be afforded applicants who are in good faith enti…

§ 4695. Exemptions The Commissioner may, by rule, exempt any market from any or all of the provisions of this chapter, if and to the extent that the Commissioner finds their application unnecessary or impractical to achieve the purpose of this chapter. (Added 1983, No. 238 (Adj. …

§ 4696. Mandatory market participation If the Commissioner finds that there is no voluntary market in which buyers of any line of property and casualty insurance may obtain such insurance, the Commissioner may initiate proceedings to establish a joint underwriting association for…

§ 4700. Examinations (a) The Commissioner or his or her designee shall examine any insurer, pool, advisory or service organization, or residual market mechanism as he or she deems necessary to ascertain compliance with this chapter. (b) Every insurer, pool, advisory or service or…

§ 4701. Consumer information The Commissioner shall utilize, develop, or cause to be developed a consumer information system that will include representative price ranges and other relevant information to be readily available to purchasers of insurance. The development and operat…

§ 4702. Monitoring competition In determining whether or not a competitive market exists pursuant to section 4684 of this title, the Commissioner shall monitor the degree of competition in this State. In doing so, the Commissioner shall utilize existing relevant information, anal…

§ 4703. Information and monitoring costs To the extent deemed necessary and appropriate by the Commissioner, the costs of complying with sections 4689, 4691, 4701, and 4702 of this title shall be assessed against insurers subject to this chapter. These assessments shall be made o…

§ 4704. Information to be furnished insureds; aggrieved persons (a) Every insurer shall, within a reasonable time after receipt of a written request and upon payment of a reasonable charge, if any, furnish to any insured affected by a premium or rate utilized by it, all pertinent…

§ 4704a. Rerating after use of erroneous credit information If it is determined through the reinvestigation process set forth in the federal Fair Credit Reporting Act, 15 U.S.C. § 1681i(a)(5), that credit information relied upon by an insurer was incorrect, and if an insurer rece…

§ 4705. Dividend plans Nothing in this chapter shall be construed to prohibit or regulate the payment of dividends, savings, or unabsorbed premium deposits allowed or returned by insurers to their policyholders, members, or subscribers; provided, however, this provision shall not…

§ 4706. Penalties (a) If the Commissioner finds that any person, insurer, or advisory or service organization has violated any provision of this chapter, the Commissioner may impose an administrative penalty of not more than $2,000.00 for each violation; but if the Commissioner f…

§ 4707. Judicial review Any party in interest aggrieved by the decision or final order of the Commissioner may appeal to a court of competent jurisdiction. (Added 1983, No. 238 (Adj. Sess.), § 1.)

§ 4708. Severability If any provision of this chapter or the application of such provision to any person or circumstance shall be held invalid by a court of competent jurisdiction, the remainder of the chapter and the application of its provisions to a person or circumstance othe…

§ 4711. Cancellation of commercial risk insurance (a) A notice of cancellation of a policy of commercial risk insurance as defined in this chapter but excluding farm risks, issued under this chapter shall be effective only if it is based on: (1) nonpayment of premium; (2) fraud o…

§ 4712. Notice of cancellation (a) No notice of cancellation of a policy to which section 4711 of this title applies shall be effective unless mailed or delivered by the insurer to the named insured at least 45 days prior to the effective date of cancellation, provided, that wher…

§ 4713. Notice of nonrenewal No insurer shall refuse to renew a policy of insurance to which section 4711 of this title applies 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 insure…

§ 4714. Notice requirements When notice required under section 4712 or section 4713 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 mail…

§ 4715. Renewal policies (a) If the insurer has the necessary information to issue the renewal policy of insurance to which section 4711 of this title applies, the insurer shall confirm in writing at least 45 days prior to expiration its intention to renew the policy and the prem…

§ 4716. Penalties A person who violates a provision of this subchapter may be subject to an administrative penalty of $2,000.00 for each violation. (Added 1995, No. 167 (Adj. Sess.), § 18a.)

§ 4721. Purpose The purpose of sections 4721-4733 of this title is to regulate trade practices in the business of insurance in accordance with the intent of Congress as expressed in The McCarran-Ferguson Act, 15 U.S.C. §§ 1011-1015, by defining, or providing for the determination…

§ 4722. Definitions As used in this chapter: (1) “Person” means any individual, corporation, association, partnership, reciprocal exchange, interinsurer, Lloyds insurer, fraternal benefit society, and any other legal entity engaged in the business of insurance, including agents, …

§ 4723. Unfair methods of competition or unfair or deceptive acts or practices prohibited No person shall engage in any trade practice that is determined under this chapter to be an unfair method of competition or an unfair or deceptive act or practice in the business of insuranc…

§ 4724. Unfair methods of competition or unfair or deceptive acts or practices defined The following are hereby defined as unfair methods of competition or unfair or deceptive acts or practices in the business of insurance: (1) Misrepresentations and false advertising of insuranc…

§ 4725. Favored agent or insurer; coercion of debtors (a) No person may: (1) require, as a condition precedent to the lending of money or extension of credit, or any renewal thereof, that the person to whom such money or credit is extended or whose obligation the creditor is to a…

§ 4726. Power of Commissioner; enforcement (a) The Commissioner shall have the power to examine and investigate any person engaged in the business of insurance in this State in order to determine whether that person has been or is engaged in any unfair method of competition or in…

§ 4727. Personal insurance; use of credit information (a) Purpose. The purpose of this section is to regulate the use of credit information for personal insurance so that consumers are afforded certain protections with respect to the use of such information. (b) Scope. This secti…

§ 4728. Insurance data security (a) Title. This section shall be known and may be cited as the “Vermont Insurance Data Security Law.” (b) Construction. (1) Notwithstanding any other provision of law, this section establishes the exclusive State standards applicable to licensees f…

§ 4750. Insurer anti-fraud plans (a) Every insurer with direct written premiums shall prepare, implement, and maintain an insurance anti-fraud plan. Each insurer’s anti-fraud plan shall outline specific procedures, appropriate to the type of insurance the insurer writes in this S…

§ 4791. Definitions As used in this chapter: (1) “Surplus lines insurance broker” means an individual who solicits, negotiates, or procures a policy of insurance in an insurance company not licensed to transact business in this State that cannot be procured from insurers licensed…

§ 4793. General license requirements (a) No person, partnership, association, or corporation shall act as or hold himself or herself out to be an insurance producer, surplus lines insurance broker, managing general agent, reinsurance intermediary, limited lines producer, consulta…

§ 4795. Controlled business (a) The Commissioner shall not grant, renew, continue, or permit to continue any license except for life insurance if he or she finds that the license is being or will be used by the applicant or licensee for the purpose of writing controlled business.…

§ 4796. Commissions; payment; acceptance (a) An insurance company, insurance producer, limited lines, or surplus lines broker shall not pay a commission, service fee, brokerage, or other valuable consideration to a person for selling, soliciting, or negotiating insurance in this …

§ 4797. License contents The license shall state the name, address, date of issue, the renewal or expiration date, the line or lines of insurance covered by the license, and such other information as the Commissioner deems proper for inclusion. (Amended 1967, No. 39, § 1; 1971, N…