Title 08, Title 08: Banking and Insurance

§ 4803. Adjusters, workers’ compensation adjusters, public adjusters and appraisers, qualifications, and requirements (a) Qualifications. For the protection of the people of this State, the Commissioner shall not issue, continue, or permit to exist any license as an adjuster, a w…

§ 4804. License denial; nonrenewal; or termination causes (a) The Commissioner may suspend, revoke, or refuse to continue or renew any license issued under this chapter if, after notice to the licensee and to the insurer represented, and opportunity for hearing, he or she finds a…

§ 4805. Hearings All hearings held pursuant to this subchapter shall be governed by the provisions of 3 V.S.A. chapter 25. (Amended 1973, No. 217 (Adj. Sess.), § 15.)

§ 4806. Suspension, revocation, or termination of license (a) The Commissioner shall promptly notify all appointing insurers, where applicable, and the licensee regarding any suspension, revocation, or termination of license by the Commissioner. (b) Upon suspension, revocation, o…

§ 4807. Surplus lines insurance broker (a) Every surplus lines insurance broker who solicits an application for insurance of any kind, in any controversy between the insured or his or her beneficiary and the insurer issuing any policy upon such application, shall be regarded as r…

§ 4808. Representative of fraternal benefit societies Representatives of fraternal benefit societies who sell, solicit, and negotiate insurance contracts shall be deemed insurance producers and subject to the same licensing requirements as insurance producers. (Added 1973, No. 21…

§ 4809. Countersignature Notwithstanding any other provisions of the statutes of this State, there shall be no requirement that an insurance producer who is a resident of this State must countersign a policy of insurance written by a foreign insurance company. (Added 1973, No. 21…

§ 4812. Rules and regulations The Commissioner may adopt reasonable rules and regulations for the implementation and administration of the provisions of this chapter. (Added 1973, No. 217 (Adj. Sess.), § 22; amended 1989, No. 225 (Adj. Sess.), § 25; 1995, No. 180 (Adj. Sess.), § …

§ 4813. Purpose and scope This subchapter governs the qualifications and procedures for the licensing of insurance producers. It simplifies and organizes some statutory language to improve efficiency, permits the use of new technology, and reduces costs associated with issuing an…

§ 4813a. Definitions As used in this subchapter: (1) “Business entity” shall have the same meaning as in subdivision 4791(8) of this title. (2) “Home state” means the District of Columbia and any state or territory of the United States in which an insurance producer maintains his…

§ 4813b. License required A person shall not sell, solicit, or negotiate insurance in this State for any class or classes of insurance unless the person is licensed for that line of authority in accordance with this subchapter. (Added 2001, No. 97 (Adj. Sess.), § 18.)

§ 4813c. Duties (a) A person not duly licensed as an insurance producer or limited lines producer who sells, solicits, or negotiates insurance policies on behalf of an insurer shall be deemed a producer acting as the agent of such insurer within the intent of this subchapter, and…

§ 4813d. Exceptions to licensing (a) Nothing in this subchapter shall be construed to require an insurer to obtain an insurance producer license. In this section, the term “insurer” does not include an insurer’s officers, directors, employees, subsidiaries, or affiliates. (b) A l…

§ 4813e. Application for examination A resident individual applying for an insurance producer license shall pass a written examination as set forth in subdivision 4800(3)(E) of this title unless exempt pursuant to section 4813i of this subchapter. (Added 2001, No. 97 (Adj. Sess.)…

§ 4813f. Application for license (a) An individual applying for a resident insurance producer license shall make application to the Commissioner on the Uniform Application and declare under penalty of refusal, suspension, or revocation of the license that the statements made in t…

§ 4813g. License (a) An insurance producer may receive qualification for a license and an appointment in one or more of the following lines of authority: (1) Life: insurance coverage on human lives, including benefits of endowment and annuities, and may include benefits in the ev…

§ 4813h. Nonresident licensing (a) Unless denied licensure pursuant to section 4804 of this title, a nonresident person shall receive a nonresident producer license if: (1) the person is currently licensed as a resident and in good standing in his or her home state; (2) the perso…

§ 4813i. Exemption from examination (a) An individual who applies for an insurance producer license in this State who was previously licensed for the same lines of authority in another state shall not be required to complete any prelicensing education or examination. This exempti…

§ 4813j. Assumed names An insurance producer doing business under any name other than the producer’s legal name is required to notify the Commissioner prior to using the assumed name. (Added 2001, No. 97 (Adj. Sess.), § 18.)

§ 4813k. Temporary licensing (a) The Commissioner may issue a temporary insurance producer license for a period not to exceed 180 days without requiring an examination if the Commissioner deems that the temporary license is necessary for the servicing of an insurance business in …

§ 4813l. Appointments (a) An insurance producer or limited lines producer shall not act as an agent of an insurer unless the producer becomes an appointed agent of that insurer. A producer who is not acting as an agent of an insurer is not required to become appointed. (b) An app…

§ 4813m. Notification to Commissioner of termination (a) Termination for cause. An insurer or authorized representative of the insurer that terminates the appointment, employment, contract, or other insurance business relationship with a producer shall notify the Commissioner wit…

§ 4813n. Reciprocity (a) The Commissioner shall waive any requirements for a nonresident license applicant with a valid license from his or her home state, except the requirements imposed by section 4813g of this chapter, if the applicant’s home state awards nonresident licenses …

§ 4813o. Reporting of actions (a) A producer shall report to the Commissioner any administrative action taken against the producer in another jurisdiction or by another governmental agency in this state within 30 days of the final disposition of the matter. This report shall incl…

§ 4815. Definitions As used in this subchapter: (1) “Actuary” shall have the same meaning as in section 3577 of this title. (2) “Accredited state” means a state in which the insurance department or regulatory agency has qualified as meeting the minimum financial regulatory standa…

§ 4816. Applicability of subchapter to controlling producers (a) The provisions of this subchapter shall apply to a controlling producer if, in any calendar year, the aggregate amount of gross written premium on business placed with a controlled insurer is greater than or equal t…

§ 4817. Licensure (a) No person shall act in the capacity of a managing general agent with respect to risks located in this State for an insurer licensed in this State unless such person is licensed as a managing general agent in this State and is a licensed producer in this Stat…

§ 4818. Contract required (a) No person shall transact business with a managing general agent, a reinsurance intermediary-manager, or a controlling producer as qualified by section 4816 of this title unless there is in force a written contract between the parties that sets forth …

§ 4819. Duties of insurers and reinsurers (a) Insurers utilizing managing general agents. (1) An insurer shall have on file an independent financial examination, in a form acceptable to the Commissioner, of each managing general agent with which it has done business. (2) If a man…

§ 4820. Examination authority (a) The acts of the managing general agent are considered to be the acts of the insurer on whose behalf it is acting. A managing general agent may be examined as if it were the insurer. (b) A reinsurance intermediary shall be subject to examination b…

§ 4821. Maintenance of books and records (a) General requirement. All claim files will be the joint property of the insurer or reinsurer and the contracting party. However, upon an order of liquidation of the insurer or reinsurer, such files shall become the sole property of the …

§ 4822. Sanctions If the Commissioner determines, after notice and hearing, that any person has violated any provision of this subchapter, the Commissioner may: (1) for each separate violation, impose a penalty up to $25,000.00; (2) revoke or suspend the person’s license; (3) ord…

§ 4823. Other requirements of managing general agents and reinsurance intermediaries (a) Managing general agents and reinsurance intermediaries shall not: (1) commit the insurer or reinsurer to participate in insurance or reinsurance syndicates; (2) appoint any producer without a…

§ 4824. Other requirements of controlling producers (a) All provisions of chapter 101, subchapter 13 of this title, to the extent they are not in conflict with the provisions of this subchapter, shall continue to apply to all parties within holding company systems subject to this…

§ 4826. Uniform interstate licensing Notwithstanding the provisions of subchapters 1 and 2 of this chapter or of chapter 142A of this title, the Commissioner may enter into reciprocal, cooperative, coordinating, and information sharing agreements with any other insurance producer…

§ 4831. Definitions As used in this chapter, unless the context clearly requires otherwise: (1) “Attorney” means the attorney-in-fact of a reciprocal insurer. (2) “Reciprocal” insurance is that resulting from an interchange among persons, known as subscribers, of reciprocal agree…

§ 4832. Scope of chapter; existing insurers (a) All authorized reciprocal insurers shall be governed by those provisions of this chapter not expressly made applicable to domestic reciprocal insurers. (b) Existing authorized reciprocal insurers shall after March 31, 1971 comply wi…

§ 4833. Insuring powers of reciprocals (a) A reciprocal insurer may, upon qualifying therefor as provided for by this title, transact any kind or kinds of insurance defined by this title, other than life or title insurances. (b) Such an insurer may purchase reinsurance upon the r…

§ 4834. Name; suits A reciprocal insurer shall: (1) Have and use a business name. The name shall include the word “reciprocal,” or “interinsurer,” or “interinsurance,” or “exchange,” or “underwriters,” or “underwriting,” or “association.” (2) Sue and be sued in its own name. (Add…

§ 4835. Attorney (a) The attorney of a foreign reciprocal insurer, which is duly authorized to transact insurance in this State, shall not, by virtue of discharge of its duties as such attorney with respect to the insurer’s transactions in this State, be deemed to be doing busine…

§ 4836. Organization of reciprocal insurer (a) Two or more persons may organize a domestic reciprocal insurer and make application to the Commissioner for a certificate of authority to transact insurance. (b) The proposed attorney shall fulfill the requirements of and shall execu…

§ 4837. Certificate of authority (a) The certificate of authority of a reciprocal insurer shall be issued to its attorney in the name of the insurer. (b) The Commissioner may refuse, suspend, or revoke the certificate of authority, in addition to other grounds therefor, for failu…

§ 4838. Power of attorney (a) The rights and powers of the attorney of a reciprocal insurer shall be as provided in the power of attorney given it by the subscribers. A valid power of attorney shall be in writing, executed by the subscriber, and duly executed by the attorney-in-f…

§ 4839. Modifications Modifications of the terms of the subscribers’ agreement or of the power of attorney of a domestic reciprocal insurer shall be made jointly by the attorney and the subscribers’ advisory committee. No such modification shall be effective retroactively, nor as…

§ 4840. Attorney’s bond (a) Concurrently with the filing of the declaration provided for in section 4836 of this title, the attorney of a domestic reciprocal insurer shall file with the Commissioner a bond in favor of this State for the benefit of all persons damaged as a result …

§ 4841. Deposit in lieu of bond In lieu of the bond required under section 4840 of this title, the attorney may maintain on deposit in the office of the Commissioner, subject to the same conditions as the bond, a like amount in: (1) cash; (2) securities qualified as insurer inves…