Title 08, Banking and Insurance

§ 4842. Action on bond Action on the attorney’s bond or to recover against any such deposit made in lieu thereof may be brought at any time by one or more subscribers suffering loss through a violation of its conditions, or by a receiver or liquidator of the insurer. Amounts reco…

§ 4843. Services of process; judgment (a) Legal process shall be served upon a domestic reciprocal insurer by serving the insurer’s attorney at his or her principal office. (b) Any judgment based upon legal process so served shall be binding upon each of the insurer’s subscribers…

§ 4844. Contributions to insurer The attorney or other parties may advance to a domestic reciprocal insurer upon reasonable terms such funds as it may require from time to time in its operations. Sums so advanced shall not be treated as a liability of the insurer and, except upon…

§ 4845. Financial condition; method of determining In determining the financial condition of a reciprocal insurer, the Commissioner shall apply the following rules: (1) The Commissioner shall charge as liabilities the same reserves as are required of incorporated insurers issuing…

§ 4846. Subscribers Any individual or entity that is duly organized under the laws of this State or the laws of another jurisdiction may make application for, enter into agreement for, and hold policies or contracts in or with and be a subscriber of any domestic, foreign, or alie…

§ 4847. Subscribers’ advisory committee (a) The advisory committee of a domestic reciprocal insurer exercising the subscribers’ rights shall be selected under such rules as the subscriber adopts. (b) Not less than two-thirds of the committee shall be subscribers. (c) The committe…

§ 4848. Subscribers’ liability (a) The liability of each subscriber, other than as to a nonassessable policy, for the obligations of the reciprocal insurer shall be an individual, several and proportionate liability, and not joint. (b) Except as to a nonassessable policy, each su…

§ 4849. Subscribers’ liability on judgment (a) No action shall lie against any subscriber upon any obligation claimed against the insurer until a final judgment has been obtained against the insurer and remains unsatisfied for 30 days. (b) Any such judgment shall be binding upon …

§ 4850. Assessments (a) Assessments may from time to time be levied upon subscribers of a domestic reciprocal insurer liable therefor under the terms of their policies by the attorney upon approval in advance by the subscribers’ advisory committee and the Commissioner; or by the …

§ 4851. Time limit for assessments Every subscriber of a domestic reciprocal insurer having contingent liability shall be liable for, and shall pay his or her share of, any assessment, as computed and limited in accordance with this chapter, if: (1) while his or her policy is in …

§ 4852. Aggregate liability No one policy or subscriber as to a policy shall be assessed or charged with an aggregate of contingent liability as to obligations incurred by a domestic reciprocal insurer in any one calendar year, in excess of the amount provided for in the power of…

§ 4853. Nonassessable policies (a) If a reciprocal insurer has a surplus of assets over all liabilities at least equal to the minimum capital stock and surplus required to be maintained by a domestic stock insurer authorized to transact like kinds of insurance, upon application o…

§ 4854. Subscribers’ share in assets Upon the liquidation of a domestic reciprocal insurer, its assets remaining after discharge of its indebtedness and policy obligations, the return of any contributions of the attorney or other persons to its surplus, and the return of any unus…

§ 4855. Merger or conversion (a) A domestic reciprocal insurer, upon affirmative vote of not less than two-thirds of its subscribers who vote on such merger pursuant to due notice and the approval of the Commissioner of the terms therefor, may merge with another reciprocal insure…

§ 4856. Impaired reciprocals (a) If the assets of a domestic reciprocal insurer are at any time insufficient to discharge its liabilities, other than any liability on account of funds contributed by the attorney or others, and to maintain the required surplus, its attorney shall …

§ 4901. Definitions As used in this chapter: (1) “Insurance policy” means a policy or contract covering any kind of insurance described in this title, including a contract or certificate issued by a fraternal benefit society under chapter 121 of this title or a subscriber contrac…

§ 4902. Disclosure and public information (a) The Commissioner shall make such rules as he or she considers necessary or desirable for the full, fair, and uniform disclosure and conveyance of useful information to consumers of insurance. (b) The rules may include requirements tha…

§ 4903. Administrative procedure; withdrawal of approval; judicial review Rules issued under this chapter shall be adopted under 3 V.S.A. chapter 25 and shall be subject to review as provided in that chapter. When a rule is adopted under this chapter and an insurance policy is no…

§ 4981. Definitions As used in this chapter, unless the context otherwise requires: (1) “Association” means a joint underwriting association established pursuant to this chapter. (2) “Commissioner” means the Commissioner of Financial Regulation or a designee. (3) “Property and ca…

§ 4982. Creation of Vermont joint underwriting associations (a) The Commissioner is hereby authorized, under the terms of this chapter, to establish one or more Vermont joint underwriting associations. The purpose of any such association shall be to provide insurance on a self-su…

§ 4983. Board of directors Each association established under this chapter shall operate subject to the supervision of a board of directors consisting of representatives of four of the members, who shall be elected by the members; an insurance agent licensed and writing insurance…

§ 4984. Plan of operation (a) Within 45 days following the creation of an association pursuant to section 4982 of this title, or such additional time as may be prescribed by the Commissioner, the board of directors of the association shall submit to the Commissioner for review an…

§ 4985. Policy forms and rates (a) The Commissioner shall specify whether policy forms and the rate structure shall be on a claims-made, occurrence, or other basis and coverage shall be provided by an association only on the basis specified by the Commissioner. The Commissioner m…

§ 4986. Deficits (a) In the event an association suffers an underwriting deficit for any year, the board of directors shall so certify to the Commissioner. Such certification shall be subject to the review and approval of the Commissioner. As provided in the plan of operation, bu…

§ 4987. Annual statements Each association shall adopt a fiscal year beginning on October 1 and shall file in the office of the Commissioner on or before the 15th day of November each year, or such other month specified in the plan, a statement as prescribed by the Commissioner. …

§ 4988. Examination The Commissioner shall make an examination into the affairs of each association annually or as often as he or she deems necessary. The Commissioner shall make an order indicating the scope of the examination and may appoint as examiners one or more competent p…

§ 4989. Immunity Any association, the Commissioner, or any other person or organization shall be immune from civil liability for any actions taken or statements made in good faith by any of them in any report, communication, or actions concerning risks insured or to be insured by…

§ 4990. Rules; enforcement The Commissioner may adopt reasonable rules to carry out the purposes of this chapter and may suspend or revoke, after reasonable notice and a hearing, the certificate of authority or license to transact the business of insurance in this State of any me…

§ 4991. Appeal Any member or other person aggrieved by any action or decision of an association, or of any member as a result of its participation therein, may appeal to the board of directors. The decision of the board of directors may be appealed to the Commissioner within 30 d…

§ 4992. Termination The authority granted to the Commissioner to establish a joint underwriting association under this chapter shall continue indefinitely unless the authority is terminated by act of the General Assembly. In the event authority is so terminated, any association e…

§ 5021. Non-Admitted Insurance Act; short title This chapter may be cited as the “Non-Admitted Insurance Act.” (Added 1979, No. 50, § 2.)

§ 5022. Definitions (a) Notwithstanding subsection (b) of this section, as used in this chapter, unless the context requires otherwise, words and phrases shall have the meaning given under Title V, Subtitle B of the Dodd-Frank Wall Street Reform and Consumer Protection Act, Pub. …

§ 5023. Surplus lines insurance; authorized Surplus lines insurance may be procured from non-admitted insurers, if: (1) the insurance meets the conditions specified in section 5024 of this title; (2) the insurance is placed through a licensed surplus lines broker; (3) the insurer…

§ 5023a. Domestic surplus lines insurer; authorized (a) Surplus lines insurance may be procured from a domestic surplus lines insurer if all of the following criteria are met: (1) The board of directors of the insurer has adopted a resolution seeking certification as a domestic s…

§ 5024. Conditions for placement of insurance (a) Insurance coverage, except as described in section 5025 of this chapter, shall not be placed with a surplus lines insurer unless the full amount of insurance required is not reasonably procurable from admitted insurers actually tr…

§ 5025. Exceptions concerning placement of insurance with non-admitted insurers; records The provisions of this chapter controlling the placement of insurance with non-admitted insurers shall not apply to life insurance, health insurance, annuities, or reinsurance, nor to the fol…

§ 5026. Solvent insurers required (a) Where Vermont is the home state of the insured, surplus lines brokers shall not knowingly place or continue surplus lines insurance with surplus lines insurers who are insolvent or unsound financially, and in no event shall any surplus lines …

§ 5027. Evidence of the insurance; changes; penalty (a) Where Vermont is the home state of the insured, the surplus lines broker, upon placing a domestic risk with a surplus lines insurer, shall promptly deliver to the insured the policy issued by the surplus lines insurer, or if…

§ 5028. Information required on contract Where Vermont is the home state of the insured, each surplus lines broker through whom a surplus lines insurance coverage is procured shall endorse on the outside of the policy and on any confirmation of the insurance, his or her name, add…

§ 5029. Surplus lines insurance valid (a) Insurance contracts procured as surplus lines insurance from surplus lines insurers in accordance with this chapter shall be valid and enforceable to the same extent as insurance contracts procured from admitted insurers. (b) The insuranc…

§ 5030. Liability of surplus lines insurer for losses and unearned premiums If a surplus lines insurer has assumed a surplus lines coverage through the intervention of a licensed surplus lines broker of this State, and if the premium for that coverage has been received by that br…

§ 5031. Licensing of surplus lines brokers After written application on a form supplied by the Commissioner, any licensed producer who is deemed by the Commissioner to be trustworthy and competent may be licensed as a surplus lines broker, pursuant to the provisions of chapter 13…

§ 5032. Surplus lines broker may accept business from other producers (a) A licensed surplus lines broker may originate surplus lines business himself or herself or may accept such business from any other originating producer duly licensed as to the kind or kinds of insurance inv…

§ 5033. Records of surplus lines broker (a) Where Vermont is the home state of the insured, each surplus lines broker shall keep in his or her office a full and true record of each surplus lines insurance contract covering a domestic risk placed by or through him or her with a su…

§ 5034. Quarterly reports; summary of exported business On or before the end of each month next following each calendar quarter, each surplus lines broker shall file with the Commissioner of Taxes, on forms prescribed by him or her, a verified report of all surplus lines insuranc…

§ 5035. Surplus lines tax (a) Where Vermont is the home state of the insured, gross premiums charged, less any return premiums, for surplus lines coverages placed with surplus lines insurers are subject to a premium receipts tax of three percent, which shall be collected from the…