8 V.S.A. § 8517 — VT Code / Title 8 / Chapter 165 / Section 8517
§ 8517. Binding effect of this compact
Status: in_force

(a) All lawful actions of the Commission, including all rules and operating procedures adopted by the Commission, are binding upon the compacting states.

(b) All agreements between the Commission and the compacting states are binding in accordance with their terms.

(c) Upon the request of a party to a conflict over the meaning or interpretation of Commission actions, and upon a majority vote of the compacting states, the Commission may issue advisory opinions regarding the meaning or interpretation in dispute.

(d) In the event any provision of this compact exceeds the constitutional limits imposed on the legislature of any compacting state, the obligations, duties, powers, or jurisdiction sought to be conferred by that provision upon the Commission shall be ineffective as to that compacting state, and those obligations, duties, powers, or jurisdiction shall remain in the compacting state and shall be exercised by the agency thereof to which those obligations, duties, powers, or jurisdiction is delegated by law in effect at the time this compact becomes effective.
8 V.S.A. § 14409 — VT Code / Title 8 / Chapter 204 / Section 14409
§ 14409. Disposition of securities upon court order; liability for acts of nominee
Status: in_force

Any fiduciary financial institution may dispose of any security under an order or decree of any court of competent jurisdiction by delivery of the security endorsed by the nominee as provided in section 14408 of this title in the case of sales. Any fiduciary financial institution shall be absolutely liable for any loss occasioned by the acts of the nominee or the financial institution with respect to any securities registered in the nominee's name. Both legal and equitable ownership of all securities in the financial nominee's possession or subject to the financial nominee's control shall be fully revealed by the financial institution's records.
8 V.S.A. § 4026 — VT Code / Title 8 / Chapter 107 / Section 4026
§ 4026. Filing and approval of policy forms and premiums
Status: in_force

(a)(1) No policy of health insurance or certificate under a policy filed by a health insurer and not exempted by subdivision 3368(a)(4) of this title shall be delivered or issued for delivery in this State, nor shall any endorsement, rider, or application that becomes a part of any such policy be used, until a copy of the form and of the rules for the classification of risks has been filed with the Department of Financial Regulation and a copy of the premium rates has been filed with the Green Mountain Care Board, and the Green Mountain Care Board has issued a decision approving, modifying, or disapproving the proposed rate.

(2)(A) The Green Mountain Care Board shall review rate requests and shall approve, modify, or disapprove a rate request within 90 calendar days after receipt of an initial rate filing from a health insurer. If a health insurer fails to provide necessary materials or other information to the Board in a timely manner, the Board may extend its review for a reasonable additional period of time, not to exceed 30 calendar days.

(B) Prior to the Board's decision on a rate request, the Department of Financial Regulation shall provide the Board with an analysis and opinion on the impact of the proposed rate on the insurer's solvency and reserves.

(3) The Board shall determine whether a rate is affordable; promotes quality care; promotes access to health care; protects insurer solvency; and is not unjust, unfair, inequitable, misleading, or contrary to the laws of this State. In making this determination, the Board shall consider the analysis and opinion provided by the Department of Financial Regulation pursuant to subdivision (2)(B) of this subsection.

(b)(1) In conjunction with a rate filing required by subsection (a) of this section, a health insurer shall file a plain language summary of the proposed rate. All summaries shall include a brief justification of any rate increase requested, the information that the Secretary of the U.S. Department of Health and Human Services (HHS) requires for rate increases over 10 percent, and any other information required by the Board. The plain language summary shall be in the format required by the Secretary of HHS pursuant to the Patient Protection and Affordable Care Act of 2010, Pub. L. No. 111-148, as amended by the Health Care and Education Reconciliation Act of 2010, Pub. L. No. 111-152, and shall include notification of the public comment period established in subsection (c) of this section. In addition, the insurer shall post the summaries on its website.

(2)(A) In conjunction with a rate filing required by subsection (a) of this section, a health insurer shall disclose to the Board:

(i) for all covered prescription drugs, including generic drugs, brand-name drugs excluding specialty drugs, and specialty drugs dispensed at a pharmacy, network pharmacy, or mail-order pharmacy for outpatient use:

(I) the percentage of the premium rate attributable to prescription drug costs for the prior year for each category of prescription drugs;

(II) the year-over-year increase or decrease, expressed as a percentage, in per-member, per-month total health plan spending on each category of prescription drugs; and

(III) the year-over-year increase or decrease in per-member, per-month costs for prescription drugs compared to other components of the premium rate; and

(ii) the specialty tier formulary list.

(B) The insurer shall provide, if available, the percentage of the premium rate attributable to prescription drugs administered by a health care provider in an outpatient setting that are part of the medical benefit as separate from the pharmacy benefit.

(C) The insurer shall include information on its use of a pharmacy benefit manager, if any, including which components of the prescription drug coverage described in subdivisions (A) and (B) of this subdivision (2) are managed by the pharmacy benefit manager, as well as the name of the pharmacy benefit manager or managers used.

(3)(A) Upon request, in conjunction with a rate filing required by subsection (a) of this section, a health insurer shall provide to the Board detailed information about the insurer's payments to specific providers, which may include fee schedules, payment methodologies, and other payment information specified by the Board.

(B) Confidential business information and trade secrets received from a health insurer pursuant to subdivision (A) of this subdivision (3) shall be exempt from public inspection and copying under 1 V.S.A. § 317(c)(9) and shall be kept confidential, except that the Board may disclose or release information publicly in summary or aggregate form if doing so would not disclose confidential business information or trade secrets.

(C) Notwithstanding 1 V.S.A. chapter 5, subchapter 2 (Vermont Open Meeting Law), the Board may examine and discuss confidential information outside a public hearing or meeting.

(c)(1) The Board shall provide information to the public on the Board's website about the public availability of the filings and summaries required under this section.

(2)(A) The Board shall post the rate filings pursuant to subsection (a) of this section and summaries pursuant to subsection (b) of this section on the Board's website within five calendar days following filing. The Board shall also establish a mechanism by which members of the public may request to be notified automatically each time a proposed rate is filed with the Board.

(B) The Board shall provide an electronic mechanism for the public to comment on all rate filings. The Board shall accept public comment on each rate filing from the date on which the Board posts the rate filing on its website pursuant to subdivision (A) of this subdivision (2) until 15 calendar days after the Board posts on its website the analyses and opinions of the Department of Financial Regulation and of the Board's consulting actuary, if any, as required by subsection (d) of this section. The Board shall review and consider the public comments prior to issuing its decision.

(3)(A) In addition to the public comment provisions set forth in this subsection (c), the Office of the Health Care Advocate established in 18 V.S.A. chapter 229, acting on behalf of health insurance consumers in this State, may, within 30 calendar days after the Board receives a health insurer's rate request pursuant to this section, submit to the Board, in writing, questions with a substantial relationship to the rate filing and review criteria that the Board shall ask the insurer, either directly or through its contracting actuary, if any.

(B) The Office of the Health Care Advocate may also submit to the Board written comments on a health insurer's rate request. The Board shall post the comments on its website and shall consider the comments prior to issuing its decision.

(d) The Green Mountain Care Board shall post on its website or otherwise make available to the public through a file-sharing platform all materials in the record of a rate review proceeding after redacting any information or other material that the Board determines to be confidential or otherwise subject to protection from disclosure by law.

(e) Within the time period set forth in subdivision (a)(2)(A) of this section, the Board shall:

(1) conduct a public hearing, at which the Board shall:

(A) call as witnesses the Commissioner of Financial Regulation or designee and the Board's contracting actuary, if any, unless all parties agree to waive such testimony; and

(B) provide an opportunity for testimony from the insurer, the Office of the Health Care Advocate, and members of the public;

(2) at a public hearing, announce the Board's decision of whether to approve, modify, or disapprove the proposed rate; and

(3) issue its decision in writing.

(f)(1) The insurer shall notify its policyholders of the Board's decision in a timely manner, as defined by the Board by rule.

(2) Rates shall take effect on the date specified in the insurer's rate filing.

(3) If the Board has not issued its decision by the effective date specified in the insurer's rate filing, the insurer shall notify its policyholders of its pending rate request and of the effective date proposed by the insurer in its rate filing.

(g) A health insurer, the Office of the Health Care Advocate, and any member of the public with party status, as defined by the Board by rule, may appeal a decision of the Board approving, modifying, or disapproving the insurer's proposed rate to the Vermont Supreme Court.

(h)(1) The authority of the Board under this section shall apply only to the rate review process for policies for major medical insurance coverage and shall not apply to the policy forms for major medical insurance coverage or to the rate and policy form review process for policies for specific disease, accident, injury, hospital indemnity, dental care, vision care, disability income, long-term care, student health insurance coverage, Medicare supplement insurance coverage, or other limited benefit coverage; to short-term, limited-duration health insurance coverage; or to benefit plans that are paid directly to an individual insured or to the individual's assigns and for which the amount of the benefit is not based on potential medical costs or actual costs incurred. Premium rates and rules for the classification of risk for Medicare supplement insurance policies shall be governed by section 4051 of this title.

(2) The policy forms for major medical insurance coverage, as well as the policy forms, premium rates, and rules for the classification of risk for the other lines of insurance described in subdivision (1) of this subsection shall be reviewed and approved or disapproved by the Commissioner. In making a determination, the Commissioner shall consider whether a policy form, premium rate, or rule is affordable and is not unjust, unfair, inequitable, misleading, or contrary to the laws of this State; and, for a policy form for major medical insurance coverage, whether it ensures equal access to appropriate mental health care in a manner equivalent to other aspects of health care as part of an integrated, holistic system of care. The Commissioner shall make a determination within 30 days after the date the insurer filed the policy form, premium rate, or rule with the Department. At the expiration of the 30-day period, the form, premium rate, or rule shall be deemed approved unless prior to then it has been affirmatively approved or disapproved by the Commissioner or found to be incomplete. The Commissioner shall notify a health insurer in writing if the insurer files any form, premium rate, or rule containing a provision that does not meet the standards expressed in this subsection. In such notice, the Commissioner shall state that a hearing will be granted within 20 days upon the insurer's written request.

(i) Notwithstanding the procedures and timelines set forth in subsections (a) through (e) of this section, the Board may establish, by rule, a streamlined rate review process for certain rate decisions, including proposed rates affecting fewer than a minimum number of covered lives and proposed rates for which a de minimis increase, as defined by the Board by rule, is sought. (Recodified and amended 2025, No. 11, § 2, eff. September 1, 2025; amended 2025, No. 6, § 1.)
8 V.S.A. § 2104 — VT Code / Title 8 / Chapter 72 / Section 2104
§ 2104. Request for reconsideration; review of denial of application
Status: in_force

(a)(1) If the Commissioner denies an application, not later than 15 days after the date of denial the applicant may request that the Commissioner reconsider the application.

(2) The applicant shall submit his or her request in writing and shall respond specifically to the Commissioner's stated reason or reasons for denial.

(b)(1) The Commissioner shall reconsider the application in light of the applicant's request and response and issue a decision not later than 60 days after the date of the request.

(2) If the Commissioner finds that the applicant meets the requirements of subsection 2103(a) of this title, he or she shall issue a license.

(3) If the Commissioner finds that the applicant does not meet the requirements of subsection 2103(a) of this title, the Commissioner shall not issue a license and shall:

(A) return to the applicant the bond, if any, and any amounts paid for the applicable license fee; and

(B) retain the investigation fee to cover the costs of investigating the application.

(c) The applicant may appeal the Commissioner's decision by filing an action in the civil division of the Washington County Superior Court not later than 15 days after the date the Commissioner denied the request for reconsideration.
8 V.S.A. § 4491 — VT Code / Title 8 / Chapter 121 / Section 4491
§ 4491. Review
Status: in_force

All decisions and findings of the Commissioner of Financial Regulation made under the provisions of this chapter shall be subject to review by appeal to the Supreme Court.
8 V.S.A. § 7159 — VT Code / Title 8 / Chapter 149 / Section 7159
§ 7159. Violations
Status: in_force

A violation of this chapter shall be subject to the penalties and enforcement provisions specified in section 3661 of this title.
8 V.S.A. § 13107 — VT Code / Title 8 / Chapter 203 / Section 13107
§ 13107. Failure to commence business
Status: in_force

(a) As to any mutual or cooperative financial institution that fails to commence business as a financial institution within two years after receiving a certificate of general good under section 13102 of this title, its certificate of general good and its right to do business shall lapse.

(b) Notwithstanding the time limitation in subsection (a) of this section, the Commissioner may extend the period in which business shall be commenced for a period not to exceed six months upon written application by the institution setting forth the reasons for the extension, filed before the expiration of the time period established by subsection (a) of this section. If an extension is granted by the Commissioner, the Commissioner shall notify the Secretary of State.

(c) Upon the expiration of the time periods set forth in subsections (a) and (b) of this section, the contributors of initial capital deposits of such institution shall be entitled to the return of any amounts that they have paid to the institution and all expenses incurred in the organization shall be borne by the original organizers who were named in the application for permission to organize.
8 V.S.A. § 4682 — VT Code / Title 8 / Chapter 128 / Section 4682
§ 4682. Scope
Status: in_force

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) aircraft liability and aircraft hull insurance.
8 V.S.A. § 3811 — VT Code / Title 8 / Chapter 103 / Section 3811
§ 3811. Dependents' coverage
Status: in_force

Any group life policy issued under section 3803 (employee groups) or 3804 (labor union groups) or 3807 (public employee groups) or 3808 (trustee groups) or 3809 (employer association groups) or 3810a (associations and discretionary groups) of this title may be extended to insure the employees or members against loss due to the death of their spouses and children, or any class or classes thereof, subject to the following requirements:

(1) The premium for the insurance shall be paid by the policyholder, either from the employer's, union's, or association's funds or funds contributed by them or from funds contributed by the insured employees or members, or from both. If any part of the premium is to be derived from funds contributed by the insured employees or members, the insurance with respect to spouses and children may be placed in force only if at least 75 percent of the then eligible employees or members who then have eligible dependents, excluding any as to whose family members evidence of insurability is not satisfactory to the insurer, elected to make the required contribution. If no part of the premium is to be derived from funds contributed by the employees or members, all eligible employees or members, excluding any as to whose family members evidence of insurability is not satisfactory to the insurer, must be insured with respect to their spouses and children.

(2) The amounts of insurance must be based upon some plan precluding individual selection either by the employees or members or by the policyholder, employer, or union, and shall not exceed the amount of insurance available to the employee or member with respect to any spouse or child.

(3) Upon termination of the insurance with respect to the members of the family of any employee or member by reason of the employee's or member's termination of employment, termination of membership in the class or classes eligible for coverage under the policy, or death, the spouse shall be entitled to have issued by the insurer, without evidence of insurability, an individual policy of life insurance, without disability or other supplementary benefits, providing application for the individual policy shall be made, and the first premium paid to the insurer, within 31 days after such termination, subject to the requirements of subdivisions 3820(1), (2), and (3) of this title. If any group policy terminates or is amended so as to terminate the insurance of any class of employees or members and the employee or member is entitled to have issued an individual policy, under section 3821 of this title, the spouse shall also be entitled to have issued by the insurer an individual policy, subject to the conditions and limitations provided above and in section 3821 of this title. If the spouse dies within the period during that he or she would have been entitled to have an individual policy issued in accordance with this provision, the amount of life insurance that he or she would have been entitled to have issued under such individual policy shall be payable as a claim under the group policy, whether or not application for the individual policy or the payment of the first premium therefor has been made.

(4) Notwithstanding section 3819 of this title, only one certificate need be issued for delivery to an insured person if a statement concerning any dependent's coverage is included in such certificate.
8 V.S.A. § 31313 — VT Code / Title 8 / Chapter 221 / Section 31313
§ 31313. Conflict of interest
Status: in_force

(a) The governing body of a credit union shall adopt a written conflict of interest policy that includes provisions addressing transactions with insiders, employees, volunteers, and their immediate family members, and other persons having a common ownership, investment, or other pecuniary interest in a business enterprise with such insiders and immediate family members of such persons.

(b) An extension of credit to an insider, other than a residential real estate loan secured by a first lien on property that is owned or will be owned by the insider as a primary residence, shall require the approval of the governing body if such insider is the debtor, guarantor, endorser, or cosigner of the extension of credit. If the insider is a member of the governing body, an extension of credit shall require the approval of the supervisory committee as well as the approval of the noninterested members of the governing body. Notwithstanding the foregoing, a loan to an insider that, when aggregated with the amount of all other extensions of credit to such insider and to all related interests and all related persons of such insider, would not exceed five percent of the credit union's unimpaired capital and surplus or $25,000.00, whichever is less, may be approved solely by a majority of the noninterested members of any one of the following committees:

(1) the credit committee, if any;

(2) the supervisory committee; or

(3) the governing body.

(c) An insider of a credit union, or a professional retained by a credit union, shall not, directly or indirectly, participate in any decision affecting such person's pecuniary interest or the pecuniary interest of any immediate family member, or any corporation, partnership, or association other than the credit union in which such person is directly or indirectly interested.

(d) An insider, an immediate family member of such insider, or any other person having a common ownership, investment, or other pecuniary interest in a business enterprise with an insider or immediate family member of such insider shall not obtain an extension of credit from the credit union with preferential rates, terms, or conditions, or act as guarantor or endorser thereon and shall not be involved in the appraisal or valuation of assets that are to be used as collateral for an extension of credit to such person.

(e) No insider or immediate family member of such insider shall receive, directly or indirectly, any commission, fee, or other compensation, except those of a nominal value, in connection with any extension of credit by the credit union. Notwithstanding the foregoing, this subsection:

(1) shall not prohibit payment by a credit union of:

(A) salaries to employees;

(B) incentives or bonuses to employees based on the credit union's overall financial performance;

(C) incentives or bonuses to employees, other than a member of senior management, in connection with an extension of credit, provided the governing body establishes written policies and internal controls in connection with such incentives or bonuses and monitors compliance with such policies and controls at least annually;

(D) fees to an insider or immediate family member of such insider for the performance of title searches, loan closings, and collections, provided the credit union has complied with subsection (k) of this section prior to engaging such insider or immediate family member of such insider; and

(2) shall not prohibit a director, member of a governing-body-appointed committee, or employee who is not a member of senior management or an immediate family member of such director, committee member, or employee, from receiving compensation from a person unrelated to the credit union for a service or activity performed unrelated to the credit union, provided no referral has been made by the credit union or the director, committee member, employee, or immediate family member of such director, committee member, or employee.

(f) No insider or his or her immediate family members or an employee of a credit union shall receive anything of value in connection with the making of an investment or deposit of credit union funds by the credit union, unless the governing body determines that the involvement of the insider, his or her immediate family member, or the employee does not present a conflict of interest and includes such determination in its minutes. The prohibition contained in this subsection shall not prohibit the credit union from paying salaries, incentives, and bonuses to employees in connection with the making of such investments or deposits. An insider shall conduct all transactions that are not prohibited under this subsection at arm's length and in the best interests of the credit union.

(g) No insider or his or her immediate family members shall receive any direct or indirect compensation or benefit in connection with the credit union's insurance or group purchasing activities for members and employees. The prohibition contained in this subsection shall also apply to any employee not otherwise covered if the employee is directly involved in insurance or group purchasing activities, unless the governing body determines that the employee's involvement does not present a conflict of interest and includes such determinations in its minutes. An insider and his or her immediate family member shall conduct all transactions that are not prohibited under this subsection at arm's length and in the best interests of the credit union.

(h) A credit union shall not buy, lease, or otherwise acquire premises from any of the following without the prior approval of the governing body, such approval to be included in the governing body's minutes:

(A) an insider or his or her immediate family member;

(B) a corporation in which an insider or immediate family member is an officer or director or has an ownership interest of ten percent or more; or

(C)(1) a partnership in which any insider or his or her immediate family member is a general partner or a limited partner with an interest of ten percent or more.

(2) The prohibition contained in this subsection shall also apply to any employee not otherwise covered if the employee is directly involved in investments in fixed assets, unless the governing body determines that the employee's involvement does not present a conflict of interest and includes such determinations in its minutes.

(i) No insider, employee, or any immediate family member of such insider or employee shall purchase, directly or indirectly, any of the assets of the credit union for an amount less than the current market value thereof without the prior approval of the governing body, which approval shall include a determination that the transaction is in the best interests of the credit union. Such approval and determination shall be included in the governing body's minutes.

(j) With the prior written approval of the Commissioner, a credit union may have as an employee or director a person who serves as an officer, employee, or director of any other financial institution.

(k) When a credit union retains an insider or his or her immediate family member to render services to the credit union, the hiring shall be approved by the noninterested members of the governing body, and the governing body shall document in its minutes that such hiring was at arm's length, was in the best interests of the credit union, and was in accordance with the competitive bidding and appropriate due diligence process as provided in the credit union's conflict of interest policy.

(l) The directors, committee members, members of senior management, and the immediate family members of such persons that have outstanding loans or investments in a credit union service organization shall not receive any salary, commission, investment income, or other income or compensation from such credit union service organization, either directly or indirectly, or from any person being served through the credit union service organization. This provision shall not prohibit:

(1) such credit union insiders or the immediate family members of such persons from assisting in the operation of such credit union service organization, provided such persons are not compensated by the credit union service organization; and

(2) reimbursement to the credit union for the services provided by such directors, committee members, or senior management members if the credit union service organization pays in full the amounts due to the credit union at least quarterly.

(m) A credit union shall not grant a member business loan if any additional income received by the credit union or senior management of the credit union is tied to the profit or sale of the business or commercial endeavor for which the loan is made.
8 V.S.A. § 6032 — VT Code / Title 8 / Chapter 141 / Section 6032
§ 6032. Definitions
Status: in_force

As used in this subchapter:

(1) “General account” means all assets and liabilities of the sponsored captive insurance company not attributable to a protected cell.

(2) “Incorporated protected cell” means a protected cell that, subject to the approval of the Commissioner, is formed as any type of entity permissible under Vermont law, separate from the sponsored captive insurance company of which it is a part.

(3) “Participant” means an entity as defined in section 6036 of this title, and any affiliates thereof, that are insured by a sponsored captive insurance company, where the losses of the participant are limited through a participant contract to such participant's pro rata share of the assets of one or more protected cells identified in such participant contract.

(4) “Participant contract” means a contract by which a sponsored captive insurance company insures the risks of a participant and limits the losses of each such participant to its pro rata share of the assets of one or more protected cells identified in such participant contract.

(5) “Protected cell” means a separate account established by a sponsored captive insurance company formed or licensed under the provisions of this chapter, in which assets are maintained for one or more participants in accordance with the terms of one or more participant contracts to fund the liability of the sponsored captive insurance company assumed on behalf of such participants as set forth in such participant contracts, and shall include an “incorporated protected cell” as defined in this section.

(6) “Sponsor” means any entity that meets the requirements of section 6035 of this title and is approved by the Commissioner to provide all or part of the capital and surplus required by applicable law and to organize and operate a sponsored captive insurance company.

(7) “Sponsored captive insurance company” means any captive insurance company:

(A) in which the minimum capital and surplus required by applicable law is provided by one or more sponsors;

(B) that is formed or licensed under the provisions of this chapter;

(C) that insures the risks only of its participants or, subject to Commissioner approval, other parties unaffiliated with a participant as defined in subsection 6036(d) of this title, through separate participant contracts; and

(D) that funds its liability to each participant through one or more protected cells and segregates the assets of each protected cell from the assets of other protected cells and from the assets of the sponsored captive insurance company's general account.

(8) “Controlled unaffiliated entity” means any person or entity:

(A) that is not in the corporate system of a participant and its affiliated companies;

(B) that has an existing contractual relationship with a participant or one of its affiliated companies; and

(C) whose risks are managed by a participant, as applicable, in accordance with section 6019 of this title.
8 V.S.A. § 8002 — VT Code / Title 8 / Chapter 151 / Section 8002
§ 8002. Certificate of authority; authority of the Department
Status: in_force

(a) A provider shall not receive any entrance fee, or portion thereof, or enter into a continuing care contract unless the provider has obtained a certificate of authority from the Commissioner. However, a refundable payment of $1,000.00 or less and a processing fee of $250.00 or less shall not be considered entrance fees for the purposes of this chapter. The Commissioner is authorized to modify the amounts of refundable payments and processing fees to reflect increased costs or inflation.

(b) The application for the certificate of authority shall include the following information: the name and address of the provider that will operate the facility, a copy of the proposed continuing care contract and escrow agreement to be used by the applicant, a schedule of all fees to be charged, a description of the applicant's refund policy, and, if the applicant is not an individual, a description of the applicant. This description shall include the names and addresses of members of its board of directors, if any; its affiliation with or sponsorship by other organizations, if any, and a statement of the financial responsibility of such organizations; the applicant's financial, marketing plans, and proposed marketing materials; a plan for establishment of a resident assistance fund; an actuarial report demonstrating financial feasibility; and such other information as the Commissioner may require. An applicant shall submit sufficient evidence of:

(1) the amount and liquidity of its assets relative to the risks to be assumed;

(2) the adequacy of the expertise, experience, and character of the person or persons who will manage it; and

(3) the overall soundness of its plan of operation.

(c) The Commissioner shall acknowledge receipt of an application within 15 days after the day it is received. If the application is not complete, the Commissioner shall notify the applicant, in writing, that additional information is required.

(d) The Commissioner shall act on the application within 90 days after an application is determined to be complete. The Commissioner may approve, approve with conditions, or deny a certificate of authority.

(e) The Commissioner shall not issue a certificate of authority unless he or she determines that the application conforms to the requirements of this chapter and that the provider has demonstrated financial feasibility in accordance with the information submitted pursuant to subsection (b) of this section.

(f) The certificate of authority of a provider shall remain in effect until revoked, after notice and hearing, upon a determination that the provider has violated any provision of this chapter, any rule adopted according to the provisions of this chapter, or order of the Commissioner.

(g) Providers who have been granted a certificate of authority shall be subject to the provisions of chapter 101, subchapter 7 of this title, examination and reporting, and sections 3661, 3686, and 3687 of this title. The Commissioner shall conduct an examination whenever deemed necessary but at least twice in the first six years of operation and at least once every five years thereafter. The Commissioner may waive or modify chapter 101, subchapter 7 of this title and sections 3661, 3686, and 3687 of this title as appropriate to the special characteristics of continuing care retirement communities.

(h)(1) Rate standards.

(A) Excessive. Rates are excessive if they are producing or are likely to produce unreasonably high profits for the services provided, the excess of revenue over expenses is not reasonably related to the financial requirements of the provider, or expenses are unreasonable when compared to like or similar services provided.

(B) Inadequacy. Rates are inadequate if they are insufficient to sustain projected losses and expenses in the class or classes of business to which they apply or the use of such rates has or, if continued, will have the effect of substantially lessening competition or the tendency to create a monopoly in any market.

(C) Unfair discrimination. Unfair discrimination exists if, after allowing for practical limitations, price differentials fail to reflect equitably the differences in expected losses and expenses. A rate is not unfairly discriminatory because different premiums result for a class of residents with like loss exposures but different expenses, or like expenses but different loss exposures, provided the rate equitably reflects the differences with reasonable accuracy. This provision shall not prohibit a provider from establishing a rate structure that subsidizes a portion of the units within a facility.

(2) Rating methods or criteria. In reviewing, the Commissioner shall utilize the following criteria:

(A) Basic factor in rates. Due consideration shall be given to past and prospective loss and expense experience within, and as reasonable and necessary, outside this State; to catastrophic hazards; to a reasonable provision for underwriting profit; to contingencies; to trends within and outside this State; to additional sums for leveling premium rates over time or for dividends or savings to be allowed or returned to residents; and to all other relevant factors.

(B) Classification. Risks may be classified in any lawful and reasonable way for the collection of statistics and establishment of rates. Rates for new residents may be established prospectively for individual risks in accordance with rating plans or schedules that provide for recognition of probable variations in hazards or expenses, or both.

(C) Expenses. The expense provisions included in the rates to be used by a provider shall reflect the operating methods of the provider and, so far as is determinable and reasonable, its own actual and anticipated expense experience for the kind of services provided, or any subdivision thereof.

(D) Profits. The rates may contain an allowance providing for a reasonable profit. In determining the reasonableness of profit, consideration shall be given to all relevant investment income and a provision for contingencies may be included.

(3) Filing of rates and other rating information. Every provider shall file with the Commissioner all rates and supplementary rate information that are to be used in this State. Such rates and information shall be provided to the Commissioner at least 60 days before the effective date.

(4) Use of rates and rate review. The Commissioner has the authority to review rates pursuant to the criteria set forth in this section. The Commissioner may disapprove a rate if the Commissioner finds that it is excessive, inadequate, or discriminatory.

(A) A prefiled rate may be disapproved by the Commissioner before its effective date. Existing rates shall remain in effect until a final determination is made on the proposed rate.

(B) A rate may be disapproved at any time subsequent to the effective date. The rate shall remain in effect until a new rate is finally determined.

(i) Advertising and marketing materials shall be consistent with the provisions of this chapter. Upon request by the Commissioner, the provider shall submit such materials to the Commissioner for review. In the event the Commissioner determines that the materials are inconsistent with the provisions of this chapter, he or she shall order the provider to desist from further use of those materials.
8 V.S.A. § 3503 — VT Code / Title 8 / Chapter 101 / Section 3503
§ 3503. Deposits of domestic insurer doing foreign business
Status: in_force

(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 require to enable such insurer to establish agencies or prosecute the business of insurance within such state or country. The Treasurer of this State shall safely keep such securities so deposited with him or her for the benefit of the policyholders of the insurer, but it may receive interest or dividends from the securities, or exchange them for others of equal value.

(b) If such insurer discontinues doing business in such other states or countries, it may at any time bring an action in the Superior Court against the State of Vermont, provided such deposit is made with the Treasurer of this State, to enforce, administer, or terminate the trust created by such deposit. The process in such action shall be served on the State Treasurer and the Commissioner, who shall appear and answer on behalf of the State. On proof by such company that it has paid or made sufficient provision for the payment of all liabilities arising from business written or transacted in such other states and countries, the court may make such orders and decrees for the payment or return of such funds or securities, or any part thereof, as shall protect the rights of all interested parties and the State Treasurer shall comply therewith.
8 V.S.A. § 5101 — VT Code / Title 8 / Chapter 139 / Section 5101
§ 5101. Definitions
Status: in_force

As used in this chapter:

(1) “Commissioner” means the Commissioner of Financial Regulation.

(2) “Health maintenance organization” means any person who furnishes, either directly or through arrangements with others, comprehensive health care services to an enrolled member in return for periodic payments; the amounts of said payments are agreed upon prior to the time during which the health care services may be furnished; and who is obligated to the member to arrange for or to provide directly available and accessible health care services.

(3) “Person” includes individuals, partnerships, associations, trusts, and corporations.

(4) “Health care services” means physician, hospitalization, laboratory, x-ray service, and medical equipment and supplies, which may include: medical, surgical, and dental care; psychological, obstetrical, osteopathic, optometric, optic, podiatric, chiropractic, nursing, physical therapy services, and pharmaceutical services; health education; preventive medical, rehabilitative, and home health services; inpatient and outpatient hospital services, extended care, nursing home care, convalescent institutional care, laboratory and ambulance services, appliances, drugs, medicines, and supplies; and any other care, service, or treatment of disease or conditions, or the maintenance of the physical and mental well-being of members.

(5) “Member” means any individual who has entered into a contract with a health maintenance organization for health care services or for services related to but not limited to processing, administering, or the payment of claims for health care services or on whose behalf such an arrangement has been made.

(6) “Evidence of coverage” means any certificate, agreement, or contract issued to a member setting out the coverage to which the member is entitled and the rates for that coverage.

(7) “Provider” means any physician, hospital, or other institution, organization, or other person who furnishes health care services.

(8) “Grievance” means a written complaint submitted to the Department or to the health maintenance organization in accordance with the health maintenance organization's formal grievance procedure by or on behalf of a member regarding any aspect of the health maintenance organization relative to the member.

(9) “Uncovered expenditures” mean the costs to the health maintenance organization for health care services that are the obligation of the health maintenance organization, for which a member may also be liable in the event of the health maintenance organization's impairment or insolvency, and for which no alternative arrangements for payment have been made that are acceptable to the Commissioner.
8 V.S.A. § 8313 — VT Code / Title 8 / Chapter 159 / Section 8313
§ 8313. Immunity
Status: in_force

There shall be no liability on the part of and no cause of action shall arise against the Commissioner or the Department of Financial Regulation or its employees or agents for any action taken by them in the performance of their powers and duties under this chapter.
8 V.S.A. § 3764 — VT Code / Title 8 / Chapter 103 / Section 3764
§ 3764. Computation of paid-up nonforfeiture benefits
Status: in_force

A paid-up nonforfeiture benefit available under a policy in the event of default in a premium payment due on any policy anniversary shall be such that its present value as of the anniversary shall be at least equal to the cash surrender value then provided for by the policy or, if none is provided for, that cash surrender value that would have been required under this subchapter in the absence of the condition that premiums shall have been paid for at least a specified period.
8 V.S.A. § 31504 — VT Code / Title 8 / Chapter 221 / Section 31504
§ 31504. Unrealized gain or loss on available for sale securities
Status: in_force

(a) An unrealized gain or loss on available-for-sale securities account shall be established and maintained in an amount that represents the current estimated gain or loss on investments.

(b) Changes to the allowance for unrealized gain or loss on securities account resulting from appreciation or depreciation in the value of shares or securities acquired in accordance with the provisions of this chapter shall be accounted for in accordance with standards established by the Commissioner, as the same may be amended from time to time.
8 V.S.A. § 6008 — VT Code / Title 8 / Chapter 141 / Section 6008
§ 6008. Examinations and investigations
Status: in_force

(a) Whenever the Commissioner determines it to be prudent, but not less frequently than once every five years, the Commissioner shall personally, or by some competent person appointed by the Commissioner, inspect and examine each captive insurance company to ascertain its financial condition, its ability to fulfill its obligations, and whether it has complied with the provisions of this chapter. The expenses and charges of the examination shall be paid to the State by the company or companies examined.

(b) The provisions of section 3576 of this title shall apply to examinations conducted under this section.

(c) Subdivision 6002(c)(3) of this title shall apply to all examination reports, preliminary examination reports or results, working papers, recorded information, documents and copies thereof produced by, obtained by, or disclosed to the Commissioner or any other person in the course of an examination made under this section.
8 V.S.A. § 3912 — VT Code / Title 8 / Chapter 105 / Section 3912
§ 3912. Contents of declaration
Status: in_force

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, shall show that such persons own in good faith real estate to the amount required and shall also state the town and county in which its principal office is to be located and its corporate name that shall include the word “cooperative.”
8 V.S.A. § 2200 — VT Code / Title 8 / Chapter 73 / Section 2200
§ 2200. Definitions
Status: in_force

As used in this chapter:

(1)(A) “Employee” means, subject to subdivision (B) of this subdivision (1), an individual whose manner and means of work are subject to the right of control of, or are controlled by a person and whose compensation for federal income tax purposes is reported, or required to be reported, on a W-2 form issued by:

(i) the controlling person;

(ii) an entity that directly or indirectly owns 100 percent of the controlling person; or

(iii) an entity that is directly or indirectly 100 percent owned by the same parent company as the controlling person.

(B) For purposes of a registered mortgage loan originator, the term “employee” has such binding definition as may be issued by the federal banking agencies in connection with their responsibilities under the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008.

(2) “Engage in the business of a mortgage loan originator” means to act as, or to hold oneself out as acting as, or to represent to the public that one can provide the services of, a mortgage loan originator, in a commercial context, and with some degree of habitualness or repetition. Habitualness or repetition is met if either the individual who acts as a mortgage loan originator does so with a degree of habitualness or repetition or the source of the prospective financing provides such financing or performs other phases of origination of residential mortgage loans with a degree of habitualness or repetition. Acting in a commercial context is met if either the individual or an entity for which the individual acts does so for the purpose of obtaining profit rather than exclusively for governmental or family purposes.

(3) “Housing finance agency” means any authority:

(A) that is chartered by a state to help meet the affordable housing needs of the residents of the state;

(B) that is supervised directly or indirectly by the state government;

(C) that is subject to audit and review by the state in which it operates; and

(D) whose activities make it eligible to be a member of the National Council of State Housing Agencies.

(4) “Lead” means any information identifying a potential consumer of a loan.

(5) “Lead generation” means to:

(A) initiate consumer interest or inquiry in a loan by online marketing, direct response advertising, telemarketing, or other similar consumer contact;

(B) engage in the business of selling leads for loans;

(C) generate or augment leads for other persons for, or with the expectation of, compensation or gain; or

(D) refer Vermont borrowers to other persons for loans for, or with the expectation of, compensation or gain.

(6) “Loan processor or underwriter” means an individual who performs clerical or support duties as an employee at the direction and subject to the supervision and instruction of a person licensed, or exempt from licensing, under this chapter.

(A) For purposes of this subdivision (6), the term “clerical or support duties” may include, subsequent to the receipt of a residential mortgage loan application:

(i) the receipt, collection, distribution, and analysis of information common for the processing or underwriting of a residential mortgage loan; and

(ii) communicating with a consumer to obtain the information necessary for the processing or underwriting of a loan, to the extent that such communication does not include offering or negotiating loan rates or terms, or counseling consumers about residential mortgage loan rates or terms.

(B) An individual engaging solely in loan processor or underwriter activities shall not represent to the public, through advertising or other means of communicating or providing information, including the use of business cards, stationery, brochures, signs, rate lists, or other promotional items, that such individual can or will perform any of the activities of a mortgage loan originator.

(7)(A) “Loan solicitation” means, for compensation or gain or with the expectation of compensation or gain, to:

(i) offer, solicit, broker, directly or indirectly arrange, place, or find a loan for a prospective Vermont borrower;

(ii) engage in any activity intended to assist a prospective Vermont borrower in obtaining a loan, including lead generation;

(iii) arrange, in whole or in part, a loan through a third party, regardless of whether approval, acceptance, or ratification by the third party is necessary to create a legal obligation for the third party, through any method, including mail, telephone, internet, or any electronic means; or

(iv) represent to the public through advertising or other means of communicating or providing information, including the use of business cards, stationery, brochures, signs, rate lists, or other promotional items, that a person can or will provide a loan or any of the services described in subdivisions (i)-(iii) of this subdivision (7)(A).

(B) As used in this subdivision (7), “loan solicitation” does not:

(i) apply to residential mortgage loans;

(ii) include a broker-dealer registered or exempt from registration under 9 V.S.A. § 5401 when the broker-dealer provides the services described in subdivision (A) of this subdivision (7) and the broker-dealer is not compensated by the consumer for those services;

(iii) include an agent registered or exempt from registration under 9 V.S.A. § 5402 when the agent provides the services described in subdivision (A) of this subdivision (7) and the individual agent is not compensated by the consumer for those services;

(iv) include an insurance producer licensed under 8 V.S.A. § 4800 when the insurance producer provides the services described in subdivision (A) of this subdivision (7) and the individual insurance producer is not compensated by the consumer for those services;

(v) include a seller of goods or services that provides the services described in subdivision (A) of this subdivision (7) in connection with financing the sale or proposed sale of the seller's goods or services and the seller is not compensated by the consumer for the services described in subdivision (A) of this subdivision (7); or

(vi) include other categories of loans or service providers as determined by the Commissioner by rule or order.

(8) “Mortgage broker” means any person who for compensation or gain, or in the expectation of compensation or gain, directly or indirectly negotiates, places, assists in placement, or finds, or offers to negotiate, place, assist in placement, or find, mortgage loans, other than commercial loans, on real property for others. The term shall not include real estate brokers or salespersons, as defined in 26 V.S.A. § 2211, who in connection with services performed in a prospective real estate transaction, provide mortgage information or assistance to a buyer, if such real estate broker or real estate salesperson is not compensated for providing such mortgage information or assistance in addition to the compensation received from the seller or buyer for such real estate brokerage activity. The term shall not include attorneys licensed to practice law in this State acting in their professional capacity. The term shall not include persons engaged in the foregoing activities solely in connection with the sale, assignment, or other transfer of one or more previously originated loans.

(9) “Mortgage loan originator”:

(A) Means an individual who for compensation or gain or in the expectation of compensation or gain:

(i) takes a residential mortgage loan application;

(ii) offers or negotiates terms of a residential mortgage loan; or

(iii) represents to the public, through advertising or other means of communicating or providing information, including the use of business cards, stationery, brochures, signs, rate lists, or other promotional items, that such individual can or will perform the services described in subdivision (i) or (ii) of this subdivision (9)(A).

(B) An individual “takes a residential mortgage loan application” if the individual receives a residential mortgage loan application for the purpose of facilitating a decision whether to extend an offer of residential mortgage loan terms to a borrower or prospective borrower, or to accept the terms offered by a borrower or prospective borrower in response to a solicitation, whether the application is received directly or indirectly from the borrower or prospective borrower.

(C) An individual “offers or negotiates terms of a residential mortgage loan for compensation or gain” if the individual:

(i)(I) presents for consideration by a borrower or prospective borrower particular residential mortgage loan terms;

(II) communicates directly or indirectly with a borrower or prospective borrower for the purpose of reaching a mutual understanding about prospective residential mortgage loan terms; or

(III) recommends, refers, or steers a borrower or prospective borrower to a particular lender or set of residential mortgage loan terms, in accordance with a duty to or incentive from any person other than the borrower or prospective borrower; and

(ii) receives or expects to receive payment of money or anything of value in connection with the activities described in subdivision (i) of this subdivision (9)(C) or as a result of any residential mortgage loan terms entered into as a result of such activities.

(D) Does not include:

(i) an individual engaged solely as a loan processor or underwriter, except as otherwise provided in subsection 2201(g) of this chapter;

(ii) a person or entity that only performs real estate brokerage activities and is licensed or registered in accordance with Vermont law, unless the person or entity is compensated by a buyer or a seller in addition to the compensation received for such real estate brokerage activity or is compensated by a lender, mortgage broker, or other mortgage loan originator or by any agent of such lender, mortgage broker, or other mortgage loan originator; or

(iii) a person or entity solely involved in extensions of credit relating to timeshare plans, as that term is defined in 11 U.S.C. § 101(53D).

(10) “Nontraditional mortgage product” means any mortgage product other than a 30-year fixed rate mortgage.

(11) “Real estate brokerage activity” means any activity that involves offering or providing real estate brokerage services to the public, including:

(A) acting as a real estate agent or real estate broker for a buyer, seller, lessor, or lessee of real property;

(B) bringing together parties interested in the sale, purchase, lease, rental, or exchange of real property;

(C) negotiating, on behalf of any party, any portion of a contract relating to the sale, purchase, lease, rental, or exchange of real property, other than in connection with providing financing with respect to any such transaction;

(D) engaging in any activity for which a person engaged in the activity is required to be registered or licensed as a real estate agent or real estate broker under any applicable law; and

(E) offering to engage in any activity or act in any capacity described in subdivision (A), (B), (C), or (D) of this subdivision (11).

(12) “Registered mortgage loan originator” means any individual who:

(A) meets the definition of mortgage loan originator and is an employee of:

(i) a depository institution;

(ii) a subsidiary that is:

(I) owned and controlled by a depository institution, as determined by a federal banking agency; and

(II) regulated by a federal banking agency; or

(iii) an institution regulated by the Farm Credit Administration; and

(B) is registered with, and maintains a unique identifier through, the Nationwide Multistate Licensing System and Registry.

(13) “Residential mortgage loan application” means a request, in any form, for an offer, or a response to a solicitation of an offer, of residential mortgage loan terms, and information about the borrower or prospective borrower that is customary or necessary in a decision on whether to make such an offer.

(14) “Sales finance company” means any person who has purchased one or more retail installment contracts, as defined in 9 V.S.A. §§ 2351(5) and 2401(7), from one or more retail sellers located in this State. Taking one or more retail installment contracts as security for a loan or loans shall not be construed as purchasing for purposes of this definition.
8 V.S.A. § 4182 — VT Code / Title 8 / Chapter 112 / Section 4182
§ 4182. Prevention of insolvencies
Status: in_force

(a) To aid in the detection and prevention of member insurer impairment or insolvency, it shall be the duty of the Commissioner to:

(1) Notify the commissioners of all the other states within 30 days following the action taken or the date the action occurs when the Commissioner takes any of the following actions against a member insurer:

(A) revocation of license;

(B) suspension of license; or

(C) makes a formal order that the member insurer restrict its premium writing, obtain additional contributions to surplus, withdraw from Vermont, reinsure all or any part of its business, or increase capital, surplus, or any other account for the security of policy owners, contract owners, certificate holders, or creditors.

(2) Report to the Board of Directors when the Commissioner has taken any of the actions set forth in subdivision (1) of this subsection or has received a report from any other commissioner indicating that any such action has been taken in another state. The report to the Board of Directors shall contain all significant details of the action taken or the report received from another commissioner.

(3) Report to the Board of Directors when the Commissioner has reasonable cause to believe from an examination, whether completed or in process, of any member insurer that the insurer may be an impaired or insolvent insurer.

(4) Furnish to the Board of Directors the NAIC Insurance Regulatory Information System ratios and listings of companies not included in the ratios developed by the National Association of Insurance Commissioners, and the Board may use the information contained therein in carrying out its duties and responsibilities under this section. The report and the information contained therein shall be kept confidential by the Board of Directors until such time as made public by the Commissioner or other lawful authority.

(b) The Commissioner may seek the advice and recommendations of the Board of Directors concerning any matter affecting the duties and responsibilities of the Commissioner regarding the financial condition of member insurers and insurers or health maintenance organizations seeking admission to transact business in Vermont.

(c) The Board of Directors, upon majority vote, may make reports and recommendations to the Commissioner upon any matter germane to the solvency, liquidation, rehabilitation, or conservation of any member insurer or germane to the solvency of any insurer or health maintenance organization seeking to do business in Vermont. Such reports and recommendations shall not be considered public documents.

(d) The Board of Directors, upon majority vote, shall notify the Commissioner of any information indicating a member insurer may be an impaired or insolvent insurer.

(e) The Board of Directors, upon majority vote, may make recommendations to the Commissioner for the detection and prevention of member insurer insolvencies.

(f) The Board of Directors shall, at the conclusion of any insurer impairment or insolvency in which the Association carried out its duties under this chapter or exercised any of its powers under this chapter, prepare a report on the history and causes of such impairment or insolvency, based on the information available to the Association, and submit such report to the Commissioner.
8 V.S.A. § 3382 — VT Code / Title 8 / Chapter 101 / Section 3382
§ 3382. Acts that constitute Secretary of State agent for service of process
Status: in_force

Any of the following acts in this State, effected by mail or otherwise, by an unauthorized foreign or alien insurer:

(1) the issuance or delivery of contracts of insurance to residents of this State or to corporations authorized to do business therein;

(2) the solicitation of applications for such contracts;

(3) the collection of premiums, membership fees, assessments, or other considerations for such contracts; or

(4) any other transaction of insurance business; is equivalent to and shall constitute an appointment by such insurer of the Secretary of State and his or her successor or successors in office, to be its true and lawful attorney, upon whom may be served all lawful process in any action, suit, or proceeding instituted by or on behalf of an insured or beneficiary arising out of any such contract of insurance, and any such act shall be signification of its agreement that such service of process is of the same legal force and validity as personal service of process in this State upon such insurer.
8 V.S.A. § 4105 — VT Code / Title 8 / Chapter 109 / Section 4105
§ 4105. Amount of insurance
Status: in_force

(a) Credit life insurance. The amount of credit life insurance shall not exceed the initial indebtedness. Where an indebtedness repayable in substantially equal installments is secured by an individual policy of credit life insurance the amount of insurance shall at no time exceed the scheduled amount of indebtedness and, where secured by a group policy of credit life insurance shall at no time exceed the amount of unpaid indebtedness. Notwithstanding the provisions of this subsection, agricultural loans not exceeding one year may be written up to the amount of the loan commitment on a nondecreasing or level term plan.

(b) Credit accident and health insurance. The amount of periodic indemnity payable by credit accident and health insurance in the event of disability, as defined in the policy, shall not exceed the aggregate of the periodic scheduled unpaid installments of indebtedness and shall not exceed the original indebtedness divided by the number of periodic installments.
8 V.S.A. § 4246 — VT Code / Title 8 / Chapter 113 / Section 4246
§ 4246. Insurer or rating organization; conduct of
Status: in_force

If the Commissioner finds that the conduct of any insurer or advisory or service organization is not in conformity with the Plan, he or she may, after hearing, order the cessation of the conduct complained of. Further conduct in violation of the order is subject to the provisions of chapter 101, subchapter 12 of this title. (1969, No. 63, § 7; amended 1979, No. 28, § 1.)
8 V.S.A. § 7092 — VT Code / Title 8 / Chapter 145 / Section 7092
§ 7092. Liquidation of property of foreign or alien insurers found in this State
Status: in_force

(a) If no domiciliary receiver has been appointed, the Commissioner may apply to the Superior Court of Washington County by verified petition for an order directing the Commissioner to liquidate the assets found in this State of a foreign insurer or an alien insurer not domiciled in this State, on any of the following grounds:

(1) any of the grounds established in section 7051 or 7056 of this title; or

(2) any of the grounds established in subdivisions 7091(a)(2) through (4) of this title.

(b) When an order is sought under subsection (a) of this section, the court shall cause the insurer to be given such notice and time to respond to the order as is reasonable under the circumstances.

(c) If it shall appear to the court that the best interests of creditors, policyholders, and the public require, the court may issue an order to liquidate in whatever terms it shall deem appropriate. The filing or recording of the order with the Superior Court of Washington County or the town clerk of the town in which the principal business of the company is located or the town in which its principal office or place of business is located shall impart the same notice as a deed, bill of sale, or other evidence of title duly filed or recorded with that town clerk would have imparted.

(d) If a domiciliary liquidator is appointed in a reciprocal state while a liquidation is proceeding under this section, the liquidator under this section shall thereafter act as ancillary receiver under section 7094 of this title. If a domiciliary liquidator is appointed in a nonreciprocal state while a liquidation is proceeding under this section, the liquidator under this section may petition the court for permission to act as ancillary receiver under section 7094 of this title.

(e) On the same grounds as are established in subsection (a) of this section, the Commissioner may petition any appropriate federal district court to be appointed receiver to liquidate that portion of the insurer's assets and business over which the court will exercise jurisdiction, or any lesser part thereof that the Commissioner deems desirable for the protection of the policyholders and creditors in this State.

(f) The court may order the Commissioner, when the Commissioner has liquidated the assets of a foreign or alien insurer under this section, to pay claims of residents of this State against the insurer under such rules as to the liquidation of insurers under this chapter as are otherwise compatible with the provisions of this section.
8 V.S.A. § 3504 — VT Code / Title 8 / Chapter 101 / Section 3504
§ 3504. Pension system
Status: in_force

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 and approved by the Commissioner, for any person who is or has been an employee of such company, and who shall retire by reason of age or disability, and may further provide that, if such employee shall contribute to a retirement fund established under such retirement plan, and shall thereafter retire from the service of the company for reasons other than age or disability, the employee may withdraw from such fund the amount of the employee's contribution thereto with interest thereon at such rate, if any, and subject to such rules and regulations, as may be provided by the board of directors. However, such a company shall not grant a pension after the death of an officer, director, or trustee thereof, to a member of his or her family, or to his or her estate or to any other person for the benefit thereof. For the purposes of this section, the word “employee” shall include a salaried officer or an employee of such company and, in the case of a life insurance company, a soliciting or general agent of such company and an employee of such general agent, whether or not the person for whom such pension is to be provided is or shall be deemed for any other purpose an employee of such company.
8 V.S.A. § 13104 — VT Code / Title 8 / Chapter 203 / Section 13104
§ 13104. Submission to Secretary of State
Status: in_force

Following the meeting required under subdivision 13103(e)(1) of this title and approval by the Commissioner under subdivision 13103(e)(5) of this title, the directors so elected shall submit to the Secretary of State an attested copy of each of the institution's organizational documents required by Title 11 or 11A, as the case may be. The Secretary of State shall determine whether such organizational documents satisfy the requirements of Title 11 or 11A. If such requirements are met, the Secretary of State shall file the organizational documents according to the provisions of law. The filing of the organizational documents by the Secretary of State shall not authorize the transaction of business by the financial institution until all conditions of this subchapter are satisfied.
8 V.S.A. § 2561 — VT Code / Title 8 / Chapter 79 / Section 2561
§ 2561. Refunds
Status: in_force

(a) This section does not apply to:

(1) money received for transmission subject to the federal Remittance Rule, 12 C.F.R. Part 1005, subpart B, as may be amended; or

(2) money received for transmission pursuant to a written agreement between the licensee and payee to process payments for goods or services provided by the payee.

(b) Every licensee shall refund to the sender within 10 days of receipt of the sender's written request for a refund of any and all money received for transmission unless any of the following occurs:

(1) The money has been forwarded within 10 days following the date on which the money was received for transmission.

(2) Instructions have been given committing an equivalent amount of money to the person designated by the sender within 10 days following the date on which the money was received for transmission.

(3) The agreement between the licensee and the sender instructs the licensee to forward the money at a time that is beyond 10 days following the date on which the money was received for transmission. If funds have not yet been forwarded in accordance with the terms of the agreement between the licensee and the sender, the licensee shall issue a refund in accordance with the other provisions of this section.

(4) The refund is requested for a transaction that the licensee has not completed based on a reasonable belief or a reasonable basis to believe that a crime or violation of law, rule, or regulation has occurred, is occurring, or may occur.

(5) The refund request does not enable the licensee to:

(A) identify the sender's name and address or telephone number; or

(B) identify the particular transaction to be refunded in the event the sender has multiple transactions outstanding.
8 V.S.A. § 5037 — VT Code / Title 8 / Chapter 138 / Section 5037
§ 5037. Suspension, revocation, or refusal of surplus lines broker's license
Status: in_force

The Commissioner may suspend, revoke, or refuse to renew the license of a surplus lines broker after notice and hearing as provided under 3 V.S.A. chapter 25, upon any one or more of the following grounds:

(1) failure to make accounts and records relating to domestic risks from this State available to the Commissioner during the period when such accounts and records are required to be maintained under section 5033 of this title;

(2) closing of the surplus lines broker's office for a period of more than 30 consecutive days, unless permission is granted by the Commissioner;

(3) failure to make and file required quarterly reports;

(4) failure to transmit required tax on surplus lines premiums;

(5) suspension, revocation, or refusal to renew any other license issued by the Commissioner;

(6) lack of qualifications as for an original surplus lines broker's license;

(7) material violation of any provision of this chapter; or

(8) for any other cause for which a license could be denied, revoked, suspended, or renewal refused under section 4804 of this title.
8 V.S.A. § 3301a — VT Code / Title 8 / Chapter 101 / Section 3301a
§ 3301a. Insurance defined
Status: in_force

As used in this title, “insurance” means an agreement to indemnify or otherwise assume an obligation, provide services or any other thing of value on the happening of a particular event or contingency, or to provide indemnity for loss with respect to a specified subject by specified circumstances in return for a consideration. Without limiting the generality of the term, “insurance” shall include any business defined in section 3301 of this title, annuity contracts, and the business of health maintenance organizations and continuing care retirement communities.
8 V.S.A. § 3465 — VT Code / Title 8 / Chapter 101 / Section 3465
§ 3465. Exemption from investment limitations
Status: in_force

(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 time may be reasonably necessary to avoid loss on a loan or investment previously made or an obligation created in good faith, the conditions and limitations of the investment of funds in this chapter to the contrary notwithstanding.

(b) No investment limitation contained in this chapter shall prohibit an insurer from investing in or acquiring securities or other properties of another insurance company in connection with a lawful agreement of bulk reinsurance, merger, consolidation, sale of assets, or acquisition of a subsidiary under subchapter 13 of this chapter.

(c) No investment limitation contained in this chapter shall prohibit the acquisition and retention by an insurer of substitute or additional securities or property if:

(1) received as a dividend;

(2) a lawful distribution of assets;

(3) through the exercise of rights of conversion, warrants, or rights to purchase stock or preemptive rights to subscribe to stock, contained in or attached to a previously existing investment in such company;

(4) pursuant to a lawful plan of reorganization.
8 V.S.A. § 14403 — VT Code / Title 8 / Chapter 204 / Section 14403
§ 14403. Approval of Commissioner
Status: in_force

No financial institution not otherwise expressly authorized by its respective supervisory agency under state or federal law may exercise the powers provided in this subchapter until it has applied for and obtained approval of the Commissioner to do so under subsection 11701(b) of this title. The Commissioner shall conduct inquiry into the affairs of the financial institution applying for those powers to determine if the financial institution is staffed, equipped, and able to furnish those services.
8 V.S.A. § 6048h — VT Code / Title 8 / Chapter 141 / Section 6048h
§ 6048h. Securities
Status: in_force

(a) A special purpose financial insurance company may:

(1) subject to the prior approval of the Commissioner, account for the proceeds of a surplus note issued by the special purpose financial insurance company as surplus; and

(2) submit for prior approval of the Commissioner periodic written requests for authorization to make payments of interest on and repayments of principal of surplus notes and other debt obligations issued by the special purpose financial insurance company, provided that the Commissioner shall not approve such payment if the Commissioner determines that such payment would jeopardize the ability of the special purpose financial insurance company or any other person to fulfill his or her respective obligations pursuant to the special purpose financial insurance company securitization agreements, the reinsurance contract, or any related transaction. In lieu of approval of periodic written requests for authorization to make payments of interest on and repayments of principal of surplus notes and other debt obligations issued by the special purpose financial insurance company, the Commissioner may approve a formula or plan, which shall be included in the special purpose financial insurance company's plan of operation as amended from time to time, for payment of interest, principal, or both with respect to such surplus notes and debt obligations.

(b) In addition to the provisions of section 6005 of this chapter, no dividend or distribution may be declared or paid by a special purpose financial insurance company if such dividend or distribution would jeopardize the ability of the special purpose financial insurance company or any other person to fulfill the company's or other person's respective obligations pursuant to the special purpose financial insurance company securitization agreements, the reinsurance contract, or any related transaction.

(c) A special purpose financial insurance company security shall not be subject to regulation as an insurance or reinsurance contract. An investor in such a security or a holder of such a security shall not be considered to be transacting the business of insurance in this State solely by reason of having an interest in the security. The underwriter's placement or selling agents and their partners, commissioners, officers, members, managers, employees, agents, representatives, and advisors involved in an insurance securitization by a special purpose financial insurance company shall not be considered to be insurance producers or brokers or to be conducting business as an insurance or reinsurance company or as an insurance agency, brokerage, intermediary, advisory, or consulting business solely by virtue of their underwriting activities in connection with such securitization.
8 V.S.A. § 4582 — VT Code / Title 8 / Chapter 125 / Section 4582
§ 4582. Incorporation of dental and other service corporations
Status: in_force

Three or more persons duly licensed under the laws of this State to practice dentistry, osteopathy, chiropractic, podiatry, or optometry may incorporate for the purpose of establishing a dental, osteopathic, chiropractic, podiatric, or optometric service corporation, respectively, to furnish dental, osteopathic, chiropractic, podiatric, or optometric services respectively, in the manner and subject to the restrictions specified in this chapter with respect to such corporation and consistent with the provisions of this chapter with reference to a medical service corporation organized under this chapter.
8 V.S.A. § 11201 — VT Code / Title 8 / Chapter 201 / Section 11201
§ 11201. Business days
Status: in_force

(a)(1) For purposes of this title, unless otherwise provided under other state or federal law applicable to a Vermont or state financial institution that is a depository institution, a business day is a calendar day other than the following:

(A) Saturday and Sunday;

(B) New Year's Day, January 1;

(C) Martin Luther King Jr.'s Birthday, the third Monday in January;

(D) Presidents' Day, the third Monday in February;

(E) Town Meeting Day, the first Tuesday in March;

(F) Memorial Day, the last Monday in May;

(G) Independence Day, July 4;

(H) Bennington Battle Day, August 16;

(I) Labor Day, the first Monday in September;

(J) Indigenous Peoples' Day, the second Monday in October;

(K) Veterans' Day, November 11;

(L) Thanksgiving Day, the fourth Thursday in November;

(M) Christmas Day, December 25.

(2) A legal holiday that falls on a Saturday may be observed on the preceding Friday, and a legal holiday that falls on a Sunday may be observed on the following Monday.

(b) A Vermont financial institution may choose to remain open or to close any of its banking offices on any of the days enumerated in subsection (a) of this section.
8 V.S.A. § 11402 — VT Code / Title 8 / Chapter 201 / Section 11402
§ 11402. Internal audits
Status: in_force

(a) The governing body shall cause internal audits of the Vermont financial institution to be performed. The internal audit shall be reported in writing to the governing body at least once in six months if made by a committee of the governing body and at least once a year if made by a certified or registered public accountant. Any committee of the governing body shall consist of at least three persons. At the request of the Commissioner, a copy of the report shall be made available to the Commissioner.

(b) Prior to declaration of any dividend or other distribution, the governing body of a Vermont financial institution shall determine that the institution will continue to meet the capital requirements under section 14104 of this title as established by the Commissioner after payment of the proposed dividend or other distribution.
8 V.S.A. § 2111 — VT Code / Title 8 / Chapter 72 / Section 2111
§ 2111. Revocation, suspension, termination, or nonrenewal where more than one place of business
Status: in_force

The Commissioner may revoke, suspend, terminate, or refuse to renew only the license for a particular place of business at which grounds for revocation, suspension, termination, or refusal to renew may occur or exist, or if the Commissioner finds that such grounds for revocation, suspension, termination, or refusal to renew are of general application to all licensed places of business, or to more than one licensed place of business, operated by such licensee, the Commissioner shall revoke, suspend, terminate, or refuse to renew all of the licenses issued to the licensee or such licenses as such grounds apply to, as the case may be.
8 V.S.A. § 24 — VT Code / Title 8 / Chapter 1 / Section 24
§ 24. Senior investor protection
Status: in_force

(a) The Commissioner may, in addition to other powers conferred on the Commissioner by law, adopt rules and issue orders necessary to protect senior investors from being misled by false or misleading certifications, licenses, professional designations, or other credentials that imply or indicate a special level of knowledge with regard to senior investors or their needs in the sale of securities or insurance, or both, in the providing of investment advice.

(b) To implement the protections described in subsection (a) of this section, the Commissioner may:

(1) establish standards for senior-specific certifications, licenses, professional designations, and other credentials;

(2) develop initiatives to investigate and take action against fraudulent, misleading, dishonest, or unethical marketing practices directed toward seniors;

(3) develop educational materials and training aimed at reducing such marketing practices; and

(4) accept grants from government or private entities to fund the activities set forth in this section.

(c) Any rules adopted or orders issued by the Commissioner under this section shall conform to the extent practicable to the North American Securities Administrators Association Model Rule on the Use of Senior-Specific Certifications and Professional Designation, as amended, and the National Association of Insurance Commissioners Model Regulation on the Use of Senior-Specific Certifications and Professional Designations in the Sale of Life Insurance and Annuities, as amended.

(d)(1) A violation of a rule adopted or orders issued under this section with respect to the business of insurance shall constitute an unfair or deceptive act or practice in the business of insurance, and the Commissioner may enforce such violations pursuant to the Commissioner's authority conferred by the Insurance Trade Practices Act, chapter 129 of this title, and pursuant to any other authority conferred upon the Commissioner by law.

(2) A violation of a rule adopted or order issued under this section with respect to the business of securities and investment advice shall constitute a violation of 9 V.S.A. § 5412(d)(13), and the Commissioner may enforce such violations pursuant to the Commissioner's authority conferred by the Vermont Uniform Securities Act, 9 V.S.A. chapter 150, and pursuant to any other authority conferred upon the Commissioner.

(e) The Commissioner, in addition to other powers conferred on the Commissioner by law, may increase the amount of an administrative penalty by not more than $5,000.00 per violation for violations involving a person who is a vulnerable adult as defined in 33 V.S.A. § 6902(34).
8 V.S.A. § 3571 — VT Code / Title 8 / Chapter 101 / Section 3571
§ 3571. Confidentiality
Status: in_force

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 disclosed by the Department.
8 V.S.A. § 3717 — VT Code / Title 8 / Chapter 103 / Section 3717
§ 3717. Annuity contracts
Status: in_force

A company authorized to transact the business of life insurance may grant annuities. An annuity is a contract issued for a valuable consideration under which the obligations are assumed with respect to periodic payments for a specified term or terms or where the making or continuance of all or of some of such payments, or the amount of any such payments, is dependent upon the continuance of human life. Such a contract that includes extra benefits of the kind set forth in subdivisions 3301(a)(1) and (2) of this title relating to life and health insurance shall nevertheless be deemed to be an annuity if such extra benefits constitute a subsidiary or incidental part of the entire contract.
8 V.S.A. § 3807 — VT Code / Title 8 / Chapter 103 / Section 3807
§ 3807. Public employee groups
Status: in_force

The lives of a group of individuals may be insured under a policy issued to the departmental head of any department or agency of the State of Vermont, its political subdivisions, or to an association of public employees formed for purposes other than obtaining insurance and having, when the policy is placed in force, a membership in the classes eligible for insurance of not less than 75 percent of the number of employees eligible for membership in such classes, which association or departmental head shall be deemed the policyholder, to insure members of such association or public employees for the benefit of persons other than the departmental head, the association or any of its officials, subject to the following requirements:

(1) The persons eligible for insurance under the policy shall be all of the members of the association or employees of the department, or all of any class or classes thereof determined by conditions pertaining to their employment, or to membership in the association, or both. The policy may provide that the term “employee” shall include retired employees.

(2) The premium for the policy shall be paid by the policyholder, either from the association's own funds, or from charges collected from the insured members or employees specifically for the insurance, or from both, or as may otherwise be authorized by existing or future legislation. Any charges collected from the insured members or employees specifically for the insurance, and the dues of the association if they include the cost of insurance, shall be collected through deductions by the employer from salaries of the members or employees. Such deductions from salary may be paid by the employer to the association or directly to the insurer. No policy may be placed in force unless and until at least 75 percent of the then eligible members of the association or employees of the department, excluding any as to whom evidence of individual insurability is not satisfactory to the insurer, have elected to be covered and have authorized their employer to make the required deductions from salary.

(3) Charges collected from the insured members or employees specifically for the insurance, and the dues of the association if they include the cost of insurance, shall be determined according to each attained age or in not less than four reasonably spaced attained age groups. In no event shall the rate of such dues or charges be level for all members or employees regardless of attained age.

(4) The policy must cover at least 10 persons at the date of issue.

(5) The amounts of insurance under the policy must be based upon some plan precluding individual selection either by the members, employees, or by the association.

(6) As used herein, “employees” means employees of the U.S. government, or of any state, or of any political subdivision or instrumentality of any of them.

(7) This section does not preclude the insuring of public employees under any other applicable provision of this subchapter or law of this State.
8 V.S.A. § 4023 — VT Code / Title 8 / Chapter 107 / Section 4023
§ 4023. Provisions applying to policies delivered in another state
Status: in_force

If any policy is issued by a health insurer domiciled in this State for delivery to a person residing in another state, and if the official having responsibility for the administration of the insurance laws of the other state informs the Commissioner that the policy is not subject to approval or disapproval by the official, the Commissioner may issue an order requiring that the policy meet the standards set forth in sections 4029, 4030, and 4031 of this title. (Recodified and amended 2025, No. 11, § 2, eff. September 1, 2025.)
8 V.S.A. § 2519 — VT Code / Title 8 / Chapter 79 / Section 2519
§ 2519. Activities of check cashers and currency exchanges
Status: in_force

(a) Check cashing.

(1) A licensee, in every location conducting business under a license issued pursuant to this chapter, shall conspicuously post and at all times display a notice stating all fees charged. A licensee shall file with the Commissioner a statement of the fees charged at every location licensed for services offered there.

(2) Before a licensee shall deposit, with any financial institution, a payment instrument that is cashed by a licensee, each such item shall be endorsed with the actual name under which such licensee is doing business. Additionally, the words “Licensed Check Cashing Business” must be written legibly or stamped immediately after or below the name of the endorser.

(3) A licensee shall comply with all applicable federal statutes governing currency transaction reporting.

(4) A licensee may not alter or delete any information on any payment instrument cashed.

(5) A licensee shall issue a receipt for each check cashing transaction upon request. The receipt shall include, among other matters the licensee may desire to include, the amount of the payment instrument and the total fee charged.

(6) A licensee shall not impose any fee or other charge for bad checks other than as expressly permitted under the provisions of 9 V.S.A. §§ 2311 and 2312.

(7) Within 10 business days after being advised by the payor financial institution that a payment instrument has been altered, forged, stolen, obtained through fraudulent or illegal means, negotiated without proper legal authority, or represents the proceeds of illegal activity, the licensee shall notify the police department in the city or town where the payment instrument was cashed. If a payment instrument is returned to the licensee by the payor financial institution for any of the aforementioned reasons, the licensee may not release or destroy the payment instrument without the consent of the city or town police department, or other investigative law enforcement authority.

(8) No licensee shall issue coupons, gift certificates, or tokens to be used in lieu of money when cashing a payment instrument.

(9) No licensee shall require the customer to receive payment by a method that causes the customer to pay additional or further fees and charges to the licensee or other person, and no licensee shall charge or receive any other charges or fees in addition to the fees listed in this chapter.

(10) A licensee shall pay to every customer tendering a payment instrument to be cashed the entire face amount of such instrument in cash, less any charges permitted by this section, on the same date upon which such instrument is presented to the licensee.

(11) A licensee is prohibited from requiring that a customer cash two or more separate checks in a manner to avoid the limitations on the fees as set forth in this section.

(12) No check casher shall:

(A) charge check cashing fees, except as otherwise provided in this chapter, in excess of five percent of the face amount of the payment instrument or $5.00, whichever is greater;

(B) charge check cashing fees in excess of three percent of the face amount of the payment instrument, or $2.00, whichever is greater, if such payment instrument is the payment of any kind of state public assistance or federal Social Security benefit, if the customer cashing the payment instrument is the named payee of such payment instrument; or

(C) charge check cashing fees for personal checks or money orders in excess of 10 percent of the face amount of the personal check or money order or $5.00, whichever is less.

(13) No licensee shall agree to hold a payment instrument for later deposit. No licensee shall cash or advance any money on a postdated payment instrument.

(14) Licensees may charge a customer with a one-time membership fee not to exceed $10.00.

(b) Currency exchange.

(1) The rate of exchange and fees charged by a licensee for rendering currency exchange services shall be prominently displayed to the public at each business location.

(2) Licensees shall provide each customer with a written receipt sufficient to identify the transaction, the licensee, the rate of exchange, the fees charged, and the amount of currency exchanged.
8 V.S.A. § 2541 — VT Code / Title 8 / Chapter 79 / Section 2541
§ 2541. Security
Status: in_force

(a) An applicant for a money transmission license shall provide, and a licensee at all times shall maintain, security consisting of a surety bond in a form satisfactory to the Commissioner or, with the Commissioner's approval, a deposit that meets the requirements of this section.

(b) The amount of the required security shall be the greater of $100,000.00 or an amount equal to one hundred percent of the licensee's average daily money transmission liability in this State calculated for the most recently completed three-month period, up to a maximum of $2,000,000.00.

(c) A licensee that maintains a surety bond or deposit in the maximum amount provided for in subsection (b) of this section shall not be required to calculate its average daily money transmission liability in this State for purposes of this section.

(d) A licensee may exceed the maximum required surety bond or deposit amount pursuant to subdivision 2543(a)(5) of this subchapter.

(e) The surety bond or deposit shall be payable to the State for use of the State and for the benefit of any claimant against the licensee and its authorized delegates to secure the faithful performance of the obligations of the licensee and its authorized delegates with respect to money transmission.

(f) The aggregate liability on a surety bond may not exceed the principal sum of the bond. A claimant against a licensee or its authorized delegate may maintain an action directly against the bond, or the Commissioner may maintain an action on behalf of the claimant against the bond. The power vested in the Commissioner by this subsection shall be in addition to any other powers of the Commissioner under this chapter.

(g) The surety bond or deposit shall cover claims effective for as long as the Commissioner specifies, but for at least five years after the licensee ceases to provide money services in this State. However, the Commissioner may permit the amount of security to be reduced or eliminated before the expiration of that time to the extent the amount of the licensee's outstanding money transmission obligations in this State is reduced.
8 V.S.A. § 3427 — VT Code / Title 8 / Chapter 101 / Section 3427
§ 3427. Voting
Status: in_force

At any meeting of the shareholders, members, or policyholders, as the case may be, held pursuant to the resolution of the board of directors for the purpose of adopting an agreement of merger or consolidation, as provided for in sections 3424 and 3425 of this title, the shareholders, members, or policyholders, as the case may be, entitled to vote in respect thereof may vote in person or by proxy and shall have such votes as they are entitled to pursuant to the charter and bylaws of the insurer or as may otherwise be provided by law. Two-thirds of the votes cast at the meeting in person or by proxy shall be necessary for the adoption of such proposed articles of merger or consolidation.
8 V.S.A. § 3434 — VT Code / Title 8 / Chapter 101 / Section 3434
§ 3434. Fees-Penalty for receiving
Status: in_force

(a) No director, officer, or member of any such insurer or insurers except as fully expressed in the affidavits, described in section 3433 of this title, shall receive any fee, commission, other compensation, or valuable consideration whatever, direct or indirect, for in any manner aiding, promoting, or assisting in such merger, consolidation, or reinsurance.

(b) Any person violating the provisions of this section shall be deemed guilty of a misdemeanor, and upon conviction thereof, shall be punished by a fine of not less than $5,000.00 and not more than $15,000.00.
8 V.S.A. § 4807 — VT Code / Title 8 / Chapter 131 / Section 4807
§ 4807. Surplus lines insurance broker
Status: repealed

(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 representing the insured and his or her beneficiary and not the insurer; except any insurer that directly or through its agents delivers in this State to any surplus lines insurance broker a policy or contract for insurance pursuant to the application or request of the surplus lines insurance broker, acting for an insured other than himself or herself, shall be deemed to have authorized the surplus lines insurance broker to receive on its behalf payment of any premium that is due on the policy or contract for insurance at the time of its issuance or delivery.

(b) [Repealed.]

(c) Notwithstanding any other provision of this title, a person licensed as a surplus lines insurance broker in his or her home state shall receive a nonresident surplus lines insurance broker license pursuant to section 4800 of this chapter.

(d) Not later than July 1, 2012, the Commissioner shall participate in the national insurance producer database of the NAIC, or any other equivalent uniform national database, for the licensure of surplus lines brokers and the renewal of such licenses.
8 V.S.A. § 2532 — VT Code / Title 8 / Chapter 79 / Section 2532
§ 2532. Authorized delegate reporting
Status: in_force

(a) Each licensee shall submit a report of authorized delegates within 45 days after the end of the calendar quarter. The Commissioner is authorized and encouraged to use NMLS for the submission of the report required by this section provided that such functionality is consistent with the requirements of this section.

(b) The authorized delegate report shall include, at a minimum, each authorized delegate's:

(1) company legal name;

(2) taxpayer employer identification number;

(3) principal provider identifier;

(4) physical address;

(5) mailing address;

(6) any business conducted in other states;

(7) any fictitious or trade name;

(8) contact person name, phone number, and email;

(9) start date as licensee's authorized delegate;

(10) end date acting as licensee's authorized delegate, if applicable;

(11) any administrative, civil, or criminal order against an authorized delegate concerning their activity as an authorized delegate; and

(12) any other information the Commissioner reasonably requires with respect to the authorized delegate.
8 V.S.A. § 7097 — VT Code / Title 8 / Chapter 145 / Section 7097
§ 7097. Claims of residents against insurers domiciled in reciprocal states
Status: in_force

(a) In a liquidation proceeding in a reciprocal state against an insurer domiciled in that state, claimants against the insurer who resides within this State may file claims either with the ancillary receiver, if any, in this State, or with the domiciliary liquidator. Claims must be filed on or before the last dates fixed for the filing of claims in the domiciliary liquidation proceeding.

(b) Claims belonging to claimants residing in this State may be proved either in the domiciliary state under the law of that state, or in ancillary proceedings, if any, in this State. If a claimant elects to prove his or her claim in this State, the claimant shall file the claim with the liquidator in the manner provided in sections 7074 and 7075 of this title. The ancillary receiver shall make his or her recommendation to the court as provided under section 7082 of this title. The ancillary receiver shall also arrange a date for hearing if necessary under section 7078 of this title and shall give notice to the liquidator in the domiciliary state, either by certified mail or by personal service at least 40 days prior to the date set for hearing. If the domiciliary liquidator, within 30 days after the giving of such notice, gives notice in writing to the ancillary receiver and to the claimant, either by certified mail or by personal service, of his or her intention to contest the claim, the domiciliary liquidator shall be entitled to appear or to be represented in any proceeding in this State involving the adjudication of the claim.

(c) The final allowance of the claim by the courts of this State shall be accepted as conclusive as to amount and as to priority against special deposits or other security located in this State.
8 V.S.A. § 8007 — VT Code / Title 8 / Chapter 151 / Section 8007
§ 8007. Refunds
Status: in_force

(a) Unless otherwise provided in this section, all refunds of entrance fees shall be made within 60 days of the day notice of termination is given. Refunds shall be made less any additional costs specifically incurred by the provider at the request of the resident and set forth in writing as a separate addendum. Refunds shall be made according to the following provisions.

(b) If the contract is terminated:

(1) due to death prior to the occupancy date or 90 days thereafter, or if the person is precluded from becoming a resident under the continuing care contract due to illness, injury, or incapacity, the provider shall refund within 10 days all entrance fees received in connection with the contract;

(2) due to death after the first 90 days but within the first year of occupancy, at least 50 percent of the entrance fee shall be refunded.

(c) If the contract is voluntarily terminated by the resident and:

(1) occurs within 30 days of the date the contract was entered, the provider shall refund all money paid or property transferred in connection with the contract within 10 days;

(2) occurs more than 30 days after the contract is entered into and within the first 90 days of occupancy, the resident shall receive a refund of the entrance fee less an amount up to four percent of the entrance fee;

(3) occurs more than 90 days after occupancy, a refund shall be calculated on a pro rata basis with the provider retaining no more than two percent of the entrance fee per month of occupancy.

(d) If the contract is terminated by the provider, the provider shall refund an amount equal to the entrance fee divided by the resident's years of expected lifetime at the time of admission multiplied by his or her years of lifetime at the time of discharge or dismissal. For purposes of this subsection, years of expected lifetime shall be computed on the basis of the mortality tables used by the Department under the provisions of section 3784 of this title at the time of the discharge or dismissal. However, in any event, refunds shall not be less than 10 percent of the entrance fee. Refunds due under this subsection shall be due and payable within 10 days of the date that the resident relinquishes possession of the living unit.

(e) If less than 80 percent of individual units are contracted, a provider may apply to the Commissioner for permission to delay the refund period under subdivisions (c)(2) and (3) of this section for up to 24 months or until receipt of an entrance fee for the same or a comparable unit, whichever is earlier. If the Commissioner determines that the financial condition of the provider requires such an extension, he or she may order partial distribution of the refund in order to protect a resident from undue hardship.

(f) Notwithstanding the other refund provisions of this section, if the facility is not available for occupancy, a provider may elect to defer payment of refunds of up to 50 percent of the entrance fee received from or on behalf of the resident until receipt of an entrance fee for the same or a comparable unit or until the facility is occupied, whichever occurs first. However, in no event shall the provider defer payment of a refund for more than 24 months.

(g) In the event a provider defers payment of the refund beyond 60 days under subsections (e) and (f) of this section, it shall pay interest to the resident at a rate which is two percentage points above the prime rate charged by banks, as that term is defined in 32 V.S.A. § 3108(a).
8 V.S.A. § 1802 — VT Code / Title 8 / Chapter 65 / Section 1802
§ 1802. General and specific power
Status: in_force

A development credit corporation shall have such general and specific rights and powers, within the limitations of its charter, as are enjoyed by other Vermont corporations, and, in addition, such rights and powers as are granted hereafter.
8 V.S.A. § 8097 — VT Code / Title 8 / Chapter 154 / Section 8097
§ 8097. Authority to adopt rules
Status: in_force

The Commissioner shall adopt reasonable rules to promote premium adequacy and to protect the policyholder in the event of substantial rate increases, and to establish minimum standards for marketing practices, agent compensation, field issuance, agent testing, penalties, and reporting practices for long-term care insurance.
8 V.S.A. § 6037 — VT Code / Title 8 / Chapter 141 / Section 6037
§ 6037. Investments by sponsored captive insurance companies and protected cells
Status: in_force

Notwithstanding the provisions of section 6034 of this title, the assets of two or more protected cells may be combined for purposes of investment, and such combination shall not be construed as defeating the segregation of such assets for accounting or other purposes. Sponsored captive insurance companies and protected cells shall comply with the investment requirements contained in section 6010 of this title.
8 V.S.A. § 7008 — VT Code / Title 8 / Chapter 143 / Section 7008
§ 7008. Delinquency and collection charges
Status: in_force

(a) An insurance premium finance agreement may provide for the payment by the insured of a delinquency charge of $1.00 to a maximum of five percent of the amount of the delinquent installment that is in default for a period of five days or more, whichever is greater.

(b) An insurance premium finance agreement may provide for payment of reasonable collection and court costs, and attorney's fees of not more than 25 percent of the outstanding indebtedness.

(c) None of the charges referred to in this section shall be considered directly or indirectly in determining whether a violation of the usury laws has occurred under an insurance premium finance agreement.
8 V.S.A. § 2125 — VT Code / Title 8 / Chapter 72 / Section 2125
§ 2125. Report to Nationwide Multistate Licensing System and Registry
Status: in_force

(a) Subject to State privacy and confidentiality laws, and subject to section 2126 of this title, the Commissioner shall report regularly violations of this part, enforcement actions, and other relevant information to the Nationwide Multistate Licensing System and Registry.

(b) A licensee may challenge information the Commissioner reports to the Nationwide Multistate Licensing System and Registry in accordance with 3 V.S.A. chapter 25 and any rules adopted by the Commissioner on hearing procedures.
8 V.S.A. § 30702 — VT Code / Title 8 / Chapter 220 / Section 30702
§ 30702. Power of Commissioner to impose corrective action
Status: in_force

(a) The Commissioner may, in addition to any other powers exercisable by the Commissioner under the provisions of this title, require a Vermont credit union or state credit union with an office in this State to:

(1) maintain its accounts in accordance with such rules as the Commissioner may prescribe having regard to the size of the organization;

(2) observe methods and standards that the Commissioner may prescribe for determining the value of various types of assets;

(3) charge off or sell the whole or part of an asset that was acquired in violation of:

(A) the credit union's investment policy;

(B) the credit union's loan policy; or

(C) an order of the Commissioner;

(4) write down an asset to its market value;

(5) record liens and other interests in property;

(6) obtain a financial statement from a borrower to the extent that the credit union can do so;

(7) obtain insurance against damage to real estate taken as security;

(8) search, or obtain insurance of, the title to real estate taken as security;

(9) maintain adequate insurance against such other risks as the Commissioner may deem necessary and appropriate for the protection of members and the public; and

(10) maintain such additional policies and procedures as the Commissioner may require.

(b) Any order of the Commissioner issued under this section shall be subject to subsection 30701(c) of this title.
8 V.S.A. § 13106 — VT Code / Title 8 / Chapter 203 / Section 13106
§ 13106. Certificate to commence business
Status: in_force

(a) Upon receipt of the statement required in section 13105 of this title, the Commissioner shall cause an examination to be made to determine if the minimum capital deposits have been credited to the account of the institution and that all requirements of this section and other provisions of law have been met.

(b) Upon completion of the examination, and if it appears to the Commissioner that the whole of the required capital deposits has been paid in, the Commissioner shall issue a certificate under seal authorizing the financial institution to commence business, and this certificate shall be filed with the Secretary of State. In the case of a violation of this provision, the officers and directors assenting to the activity shall be personally liable for all debts incurred before the certificate is issued and filed. Such certificate shall be conclusive of the facts stated in the certificate and it shall be unlawful for any such mutual or cooperative financial institution to begin transacting business until such a certificate has been granted.
8 V.S.A. § 35102 — VT Code / Title 8 / Chapter 225 / Section 35102
§ 35102. Conversion of a credit union to a mutual financial institution or a cooperative financial institution
Status: in_force

(a) In addition to the provisions of chapter 206 of this title, a credit union may convert to a mutual or cooperative financial institution if all of the following are met:

(1) At least 30 days before the governing body votes on a plan of conversion under subdivision (2) of this subsection, the governing body shall give written notice to the members that it is considering a conversion. The governing body shall mail the notice to the members and shall not include any other mailing with the notice. The notice shall include all of the following:

(A) a brief statement of why the governing body is considering the conversion;

(B) a brief statement of the major positive and negative effects of the proposed conversion; and

(C) a request for members' written comments on the proposed conversion.

(2) The governing body must approve of the plan of conversion and file the plan of conversion with the Commissioner. An affirmative vote of two-thirds of the entire governing body is required to approve a plan of conversion. The plan of conversion shall meet all of the following:

(A) The conversion plan discloses to the members information concerning the advantages and disadvantages of the proposed conversion and contains a statement indicating any material differences in powers between a credit union and a mutual or cooperative financial institution.

(B) The conversion is not intended to circumvent a pending supervisory action initiated by the Commissioner or another regulatory agency because of a concern over the safety and soundness of the credit union.

(C) The conversion plan does not provide any official of the converting credit union with any remuneration or other economic benefit in connection with the conversion.

(D) After conversion, the mutual or cooperative financial institution is likely to be economically viable.

(3) The governing body shall call a special meeting of the members to vote on the conversion plan and shall mail to each member a notice of the meeting and proposed conversion 60 days before the date of the special meeting. The notice shall include all of the following:

(A) a summary of the positive and negative effects of the proposed conversion;

(B) a statement that the directors will not receive any remuneration or other economic benefit in connection with the conversion of the credit union;

(C) a statement that any interested person may obtain more detailed information about the conversion from the credit union at its principal place of business or by any method approved in advance by the Commissioner;

(D) a statement that the governing body may substantively amend the proposed plan of conversion before the special meeting based on comments from regulatory authorities or any other reason, and that the governing body may terminate the proposed plan of conversion;

(E) instructions for obtaining a copy of the conversion plan;

(F) the date of the special meeting and a statement that the vote on the conversion will close on that date; and

(G) any other information required by the Commissioner.

(4) 30 days before the special meeting of the members, the governing body shall mail a notice of the meeting and proposed conversion to each member. The notice shall include all of the information described in subdivision (3) of this subsection for the 60-day notice and shall include the date, time, and place of the special member meeting, a ballot and postage-paid return envelope, and a summary of the methods permitted for casting votes.

(5) If the governing body substantively amends the plan of conversion, at least 30 days before the vote of the members on the plan, the governing body shall mail a notice to each member. The notice shall contain the information concerning the amended plan of conversion described in subdivision (3) of this subsection for a notice under that subdivision.

(6) At the special meeting of members, the members, by a two-thirds vote of members voting, must approve of the conversion and the plan of conversion. A member may vote in person or by mail. With the prior approval of the Commissioner, a credit union may accept member votes by an alternative method that is reasonably calculated to ensure each member has an opportunity to vote.

(7) The credit union shall file with the Commissioner all of the following:

(A) certified copies of records of all proceedings held by the governing body and members of the credit union;

(B) copies of member comments submitted to the credit union under subdivision (1)(C) of this subsection;

(C) if such consent or approval is required, a certified copy of the consent or approval of any state or federal regulatory authority with jurisdiction over the mutual or cooperative financial institution after the conversion and, if a holding company is to be formed in connection with the conversion, the regulations of the Federal Reserve Board of Governors or of the Office of Thrift Supervision applicable to holding companies; and

(D) verification that deposits in the converted mutual or cooperative financial institution qualify for federal insurance.

(b) If the requirements of this section are met and the Commissioner determines that the notices to members were accurate, timely, and not misleading, and that conduct of the vote on the conversion plan was fair and lawful, the Commissioner shall approve the conversion, and the conversion shall be effective.

(c) Except as otherwise required by the Commissioner, this section does not apply to a credit union that submitted to the Commissioner a plan of conversion to a mutual or cooperative financial institution before July 1, 2005.

(d) In the event of any conflict between the provisions of this section and the provisions of chapter 206 of this title, the provisions of this section shall govern.
8 V.S.A. § 19 — VT Code / Title 8 / Chapter 1 / Section 19
§ 19. Fees and departmental expenses
Status: in_force

(a) The Commissioner shall charge each financial institution or financial institution applicant for Department services rendered. Charges for Department services shall be billed as follows:

(1) New financial institution application or new independent trust company application, $5,000.00.

(2) Interim reorganization application, $2,000.00.

(3) Merger, change in control, or other reorganization, share exchange, consolidation, or acquisition, $2,000.00.

(4) Conversion of a charter, $2,500.00.

(5) Establishment of a branch in the State, $500.00.

(6) Establishment of a remote service unit, $250.00. Where more than one remote service unit performing identical services on single premises are petitioned at the same time, the total charge shall be $250.00. This fee shall not apply if the remote service unit is placed at an existing branch.

(7) Relocation of main office, branch, or remote service unit, $250.00.

(8) For trust powers subsequent to the granting of the authority as financial institution, $2,000.00.

(9) Sale of branch, $500.00.

(10) Sale, lease, or exchange of all an institution's assets, $5,000.00.

(11) Voluntary dissolution or liquidation of an institution, $5,000.00.

(12) Establishment of a special purpose financial institution, $5,000.00.

(13) Establishment of a temporary agency, $150.00.

(14) Activity at a school, $250.00.

(15) Establishment of a loan production office or engaging in loan production activity in the State, $750.00.

(16) Permit a foreign exchange activity, $500.00.

(17) Purchase or establish a subsidiary or service corporation, $2,500.00.

(18) Certificate (good standing), $100.00.

(19) Establish a development credit corporation, $1,000.00.

(20) Permission to use “bank” in name, $100.00.

(21) Advisory interpretations, advisory opinions, non-objection letters, and no action letters, $250.00, plus expenses.

(22) Increase or reduction in permanent capital, $250.00.

(23) New credit union application, new credit union service organization application, or new corporate credit union application, $2,500.00.

(24) Extension of a certificate of general good or extension of a certificate of approval, $50.00.

(25) Contract with another financial institution as agent, $500.00.

(26) Any other corporate organizational changes not covered in this subsection, $250.00 plus expenses. No petition or application shall be considered by the Commissioner until payment for the enumerated charge has been received.

(b) Merchant banks established under section 12603 of this title, uninsured banks established under section 12604 of this title, and independent trust companies assessed as provided in subdivision 2405(f)(1) of this title shall be billed for all examinations. All other institutions subject to assessment under subsection (d) of this section shall not be billed for regular examinations.

(c) Each person, except as otherwise provided in subsection (d) of this section, within 30 days of notification, shall pay the Department fees as prescribed by section 18 of this title, which fees shall be billed when they are incurred.

(d) The Commissioner shall apportion the expenses allowed under the title “Department of Financial Regulation—Banking” in the annual appropriation bill among the several financial institutions, credit unions, and independent trust companies directly regulated under this title, including the operations in Vermont of any such entity organized in another jurisdiction. Annually, on or before November 1, the Commissioner shall notify the institutions of the proposed assessment. The assessment shall consider surpluses or shortfalls from prior year assessments, increases, and decreases in entity deposits and assets under management, and any other factor that may affect the Banking Division's expenditures and revenues. The Commissioner shall send each entity a bill for such entity's portion of the assessment on or before March 1 of each year, which bill shall be paid into the State Treasury on or before April 1.

(1) Financial institutions and credit unions that accept deposits will be assessed based on the amount of their deposits held in this State on the preceding June 30.

(2) In the case of merchant banks established under section 12603 of this title, the assessment shall be based on assets in this State on the preceding June 30.

(3) In the case of nondepository trust companies established under section 12602 of this title, the assessment will be based on assets under management in this State on the preceding June 30.

(4) In the case of an uninsured bank established under section 12604 of this title:

(A) an uninsured bank whose primary activity is transactional shall pay to the Department an annual assessment equal to $0.0001 per dollar volume of activity performed for the most recent year ended December 31, which assessment shall not be greater than $50,000.00; and

(B) an uninsured bank whose primary activity is accepting uninsured deposits shall be assessed based on the amount of deposits on the preceding June 30.

(5) No financial institution, credit union, nondepository trust company, merchant bank, or uninsured bank subject to assessment under subdivision (1), (2), (3), or (4) of this subsection may pay less than $2,000.00 per annual assessment.

(6) Loan production offices or persons engaged in an approved loan production activity authorized under prior law that do not pay an assessment under subdivision (1), (2), (3), or (4) of this subsection shall pay an annual fee of $1,200.00.

(7) In the case of independent trust companies organized under chapter 77 of this title:

(A) an independent trust company whose primary activity in this State is transactional shall pay an assessment calculated under subdivision 2405(f)(1) of this title; and

(B) an independent trust company whose primary activity in this State is asset management shall pay an assessment based on assets under management, provided the annual assessment shall not be less than $2,000.00.

(e) If any entity fails to pay fees or expenses as provided in this section or section 18 of this title, within 45 days after notice from the Department of the amount due, the Commissioner may issue an execution against the property of the delinquent for an amount equal to 150 percent of the amount of the overdue payment. Such execution shall be enforced as an execution of a court.

(f) There is hereby created a fund to be known as the Financial Institution Supervision Fund for the purpose of providing the financial means for the Commissioner of Financial Regulation to administer Parts 2, 4, and 5 of this title, 9 V.S.A. Parts 1 and 3, and Title 9A. All fees and assessments received by the Department pursuant to such administration shall be deposited in this Fund.

(g) All payments from the Banking Supervision Fund for the maintenance of staff and associated expenses, including contractual services as necessary, shall be disbursed from the State Treasury only upon warrants issued by the Commissioner of Finance and Management after receipt of proper documentation regarding services rendered and expenses incurred.

(h) Any entity, subject to the assessment under subsection (d) of this section, that converts or relinquishes its State charter or closes all of its branches or offices in this State will be responsible for a pro rata share of the assessment made under subsection (d) of this section for the final period it was authorized to conduct business under this title.
8 V.S.A. § 4203 — VT Code / Title 8 / Chapter 113 / Section 4203
§ 4203. Required conditions
Status: in_force

Each policy issued and delivered under this chapter shall contain in substance the following conditions:

(1) The company shall pay and satisfy any judgment that may be recovered against the insured upon any claim covered by this policy to the extent and within the limits of liability assumed thereby and shall protect the insured against the levy of any execution issued upon any such judicial judgment or claim against the insured. No limitation of liability in the policy shall be valid if, after a judgment has been rendered against the insured in respect to his or her legal liability for damages in a particular instance, the company continues the litigation by an appeal or otherwise, unless the insured stipulates with the company, agreeing to continue such litigation.

(2) No action shall lie against the company to recover for any loss under this policy, unless brought within one year after the amount of such loss is made certain either by judgment against the insured after final determination of the litigation or by agreement between the parties with the written consent of the company.

(3) The insolvency or bankruptcy of the insured shall not release the company from the payment of damages for injury sustained or loss occasioned during the life of the policy, and in case of such insolvency or bankruptcy an action may be maintained by the injured person or claimant against the company under the terms of the policy, for the amount of any judgment obtained against the insured not exceeding the limits of the policy.

(4) Payment of any judicial judgment or claim by the insured for any of the company's liability under the policy shall not bar the insured from any action or right of action against the company. In case of payment of loss or expense under the policy, the company shall be subrogated to all rights of the insured against any party, as respects such loss or expense, to the amount of such payment, and the insured shall execute all papers required and shall cooperate with the company to secure to the company such rights.

(5) Policies of motor vehicle insurance shall not provide for any adjustment of rates, the application of any merit rating surcharge plan, nor any similar adjustment or surcharge for any payments made to or on behalf of an insured for damages not attributable to any fault of the insured.

(6) Policies of motor vehicle insurance shall not provide for any adjustment of rates, the application of any merits surcharge rating plan, nor any similar adjustment or surcharge for the first violation of 23 V.S.A. § 800.
8 V.S.A. § 3812 — VT Code / Title 8 / Chapter 103 / Section 3812
§ 3812. Provisions required in group contracts
Status: in_force

No policy of group life insurance shall be delivered in this State unless it contains in substance the provisions set forth in sections 3813 through 3822 of this title or provisions that in the opinion of the Commissioner are more favorable to the persons insured, or at least as favorable to the persons insured and more favorable to the policyholder; except, however, that:

(1) Sections 3818 to 3822 inclusive shall not apply to policies issued to a creditor to insure debtors of such creditor.

(2) The standard provisions required for individual life insurance policies shall not apply to group life insurance policies.

(3) If the group life insurance policy is on a plan of insurance other than the term plan, it shall contain a nonforfeiture provision or provisions that in the opinion of the Commissioner is or are equitable to the insured persons and to the policyholder, but nothing herein shall be construed to require that group life insurance policies contain the same nonforfeiture provisions as are required for individual life insurance policies.
8 V.S.A. § 6004 — VT Code / Title 8 / Chapter 141 / Section 6004
§ 6004. Minimum capital and surplus; letter of credit
Status: in_force

(a) Prior to issuing any policies of insurance or entering into any contracts of reinsurance, each captive insurance company shall possess and thereafter maintain unimpaired paid-in capital and surplus of:

(1) in the case of a pure captive insurance company, not less than $250,000.00;

(2) in the case of an association captive insurance company, not less than $500,000.00;

(3) in the case of an industrial insured captive insurance company, not less than $500,000.00;

(4) in the case of an agency captive insurance company, not less than $250,000.00;

(5) in the case of a risk retention group, not less than $1,000,000.00; and

(6) in the case of a sponsored captive insurance company, not less than $100,000.00.

(b) The Commissioner may prescribe additional capital and surplus based upon the type, volume, and nature of insurance business transacted.

(c) Capital and surplus may be in the form of cash, marketable securities, a trust approved by the Commissioner and of which the Commissioner is the sole beneficiary, or an irrevocable letter of credit issued by a bank approved by the Commissioner. The Commissioner may reduce or waive the capital and surplus amounts required by this section pursuant to a plan of dissolution for the company approved by the Commissioner.

(d) Within 30 days after commencing business, each captive insurance company shall file with the Commissioner a statement under oath of its president and secretary or, in the case of a captive insurance company formed as a limited liability company or as a reciprocal insurer, of two individuals authorized by the governing board certifying that the captive insurance company possessed the requisite unimpaired, paid-in capital and surplus prior to commencing business.
8 V.S.A. § 4249 — VT Code / Title 8 / Chapter 113 / Section 4249
§ 4249. Proof of financial stability
Status: in_force

(a) In order to ensure the performance of a provider's obligations to its contract holders, each provider shall continue to possess and provide the Commissioner the following documents as proof of financial stability:

(1)(A) a surety bond, securities of the type eligible for deposit by an authorized insurer in this State, cash, or letter of credit in a form acceptable to the Commissioner, which shall have at all times a value of not less than five percent of the gross annual consideration from all service contracts issued and in force, but in no case to be less than $25,000.00. Such bond, securities, cash, or letter of credit shall be maintained unimpaired as long as the provider continues to do business in this State. When the provider ceases to do business in this State and has furnished the Commissioner proof that it has discharged all its obligations to its service contract holders in this State, the Commissioner shall release said bond, cash, or letter of credit; and

(B) a funded reserve account for its liability under its service contracts issued and outstanding in this State. Such reserve shall at all times be not less than 40 percent of all consideration received, less claims paid, on in force contracts. Such reserve accounts shall be subject to examination and review by the Commissioner upon a request; or

(2) evidence that all of its service contracts are insured through the purchase of a service contract reimbursement policy issued by an insurer that files annually with the National Association of Insurance Commissioners a financial statement prepared in accordance with the accounting practices and procedures required or permitted by their domiciliary regulatory authority and a corresponding audit report that reflects:

(A) capital and surplus of $5,000,000.00 or more;

(B) written premiums not exceeding three times capital and surplus over the most recent five years; and

(C) profitable operations over the most recent five years; or

(3) a copy of the provider's financial statement or, if the provider's financial statement is consolidated with those of a parent company or affiliate, the provider's parent company or affiliate's financial statement, for the most recent calendar year which shows a net worth of the provider or its parent company or affiliate of at least $50 million. The financial statement shall contain information relating to the general financial condition, ownership, and management of the provider and its controlling parent organization, the identity of the controlling entity, if applicable, and any reinsurance agreements covering all or substantially all of the ceded service contracts. A Form 10-K filed with the Securities and Exchange Commission within the last calendar year may be filed to meet the financial stability filing requirement.

(b) If the provider's parent or affiliate company's financial statement is filed with the Commissioner pursuant to subdivision (a)(3) of this section as evidence of a net worth of at least $50 million, the parent or affiliate company shall agree, on a form prescribed by the Commissioner, to guarantee the provider's obligations relating to service contracts sold by the provider in this State.

(c) The Commissioner may, upon review of the business activities of a provider, determine that the amounts set forth in this section are inadequate for protection of the public, and may require additional assurances of financial stability.

(d) In the event that the Department recovers funds from service contract providers, the Commissioner in his or her discretion may distribute such funds in a manner that he or she determines is equitable and cost-effective, giving due consideration to the amount of funds recovered, the estimated amounts due to consumers, and the costs of administering any distribution. Distributions may be allocated based on claims made, premiums, or the number of consumers affected. If the Commissioner determines that it would be prohibitively expensive or impossible to make restitution to consumers, the recovered funds will be remitted to the General Fund.
8 V.S.A. § 8304 — VT Code / Title 8 / Chapter 159 / Section 8304
§ 8304. Regulatory action level event
Status: in_force

(a) The following are deemed to be regulatory action level events and subject to the requirements of this section:

(1) A risk-based capital report or final adjusted risk-based capital report that indicates that the insurer's total adjusted capital is greater than or equal to its authorized control level risk-based capital, but less than its regulatory action level risk-based capital.

(2) Late filing of a risk-based capital report that is not excused by the Commissioner and cured within 10 days of the filing date.

(3) Failure to file a risk-based capital plan within the time provided in section 8303 of this title.

(4) Notice by the Commissioner that a plan submitted by the insurer under section 8303 of this title is disapproved and that the disapproval has been deemed by the Commissioner as constituting a regulatory action level event.

(5) Notice by the Commissioner of a failure to adhere to its risk-based capital plan or revised risk-based capital plan where the failure has a substantial adverse effect on the ability of the insurer to eliminate the regulatory action level event in accordance with its plan.

(b) An insurer shall prepare and submit to the Commissioner a risk-based capital plan within 45 days of filing a risk-based capital report or within 45 days of notice of a final adjusted risk-based capital report showing a regulatory action level event.

(c) The Commissioner shall order such examination and analysis as the Commissioner deems necessary of the assets, liabilities, and operations of the insurer, including a review of its risk-based capital plan or revised risk-based capital plan. Subsequent to the examination or analysis, the Commissioner shall issue an order specifying such corrective actions as the Commissioner shall determine are required. In determining corrective actions, the Commissioner may take into account the results of any examination and analysis of the insurer's assets, liabilities, and operations, including any sensitivity test undertaken pursuant to the risk-based capital instructions.

(d) The Commissioner may retain actuaries, investment experts, and other consultants as the Commissioner deems necessary to review the insurer's risk-based capital plan or revised risk-based capital plan; examine or analyze the assets, liabilities, and operations of the insurer; and formulate the corrective order with respect to the insurer. The fees, costs, and expenses relating to consultants shall be borne by the affected insurer or such other party as directed by the Commissioner.
8 V.S.A. § 4853 — VT Code / Title 8 / Chapter 132 / Section 4853
§ 4853. Nonassessable policies
Status: in_force

(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 of the attorney and as approved by the subscribers' advisory committee, the Commissioner shall issue his or her certificate authorizing the insurer to extinguish the contingent liability of subscribers under its policies then in force in this State, and to omit provisions imposing contingent liability in all policies delivered or issued for delivery in this State for so long as all of the surplus remains unimpaired.

(b) Upon impairment of such surplus, the Commissioner shall immediately revoke the certificate. The revocation shall not render subject to contingent liability any policy then in force and for the remainder of the period for which the premium has previously been paid; but after the revocation no policy shall be issued or renewed without providing for contingent assessment liability of the subscriber.

(c) The Commissioner shall not authorize a domestic reciprocal insurer so to extinguish the contingent liability of any of its subscribers or in any of its policies to be issued, unless it is qualified to and does extinguish the liability of all its subscribers and in all policies for all kinds of insurance transacted by it. Nevertheless, if required by the laws of another state in which the insurer is transacting insurance as an authorized insurer, the insurer may issue policies providing for the contingent liability of such of its subscribers as may acquire such policies in that state, and need not extinguish the contingent liability applicable to policies previously in force in that state.
8 V.S.A. § 3587 — VT Code / Title 8 / Chapter 101 / Section 3587
§ 3587. Contents of ORSA summary report
Status: in_force

(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 examination or upon request of the Commissioner.

(b) The review of the summary report, and any additional requests for information, shall be made using similar procedures currently used in the analysis and examination of multistate or global insurers and insurance groups.
8 V.S.A. § 6009 — VT Code / Title 8 / Chapter 141 / Section 6009
§ 6009. Grounds and procedures for suspension or revocation of license
Status: in_force

(a) The license of a captive insurance company may be suspended or revoked by the Commissioner for any of the following reasons:

(1) insolvency or impairment of capital or surplus;

(2) failure to meet the requirements of section 6004 of this title;

(3) refusal or failure to submit an annual report, as required by this chapter, or any other report or statement required by law or by lawful order of the Commissioner;

(4) failure to comply with the provisions of its own charter, bylaws, or other organizational document;

(5) failure to submit to or pay the cost of examination or any legal obligation relative thereto, as required by this chapter;

(6) use of methods that, although not otherwise specifically prohibited by law, nevertheless render its operation detrimental or its condition unsound with respect to the public or to its policyholders; or

(7) failure otherwise to comply with the laws of this State.

(b) If the Commissioner finds, upon examination, hearing, or other evidence, that any captive insurance company has violated any provision of subsection (a) of this section, the Commissioner may suspend or revoke such company's license if the Commissioner deems it in the best interests of the public and the policyholders of such captive insurance company, notwithstanding any other provision of this title.
8 V.S.A. § 7057 — VT Code / Title 8 / Chapter 145 / Section 7057
§ 7057. Liquidation orders
Status: in_force

(a) An order to liquidate the business of a domestic insurer shall appoint the Commissioner and the Commissioner's successors in office liquidator and shall direct the liquidator immediately to take possession of the assets of the insurer and to administer them under the general supervision of the court. The liquidator shall be vested by operation of law with the title to all the property, contracts, and rights of action, and all the books and records of the insurer ordered liquidated, wherever located, as of the entry of the final order of liquidation. The filing or recording of the order with the Superior Court of Washington County or the town clerk of the town in which its principal office or place of business is located or, in the case of real estate, with the town clerk of the town where the property is located, shall impart the same notice as a deed, bill of sale, or other evidence of title duly filed or recorded with that town clerk would have imparted.

(b) Upon issuance of the order, the rights and liabilities of any such insurer and of its creditors, policyholders, shareholders, members, and all other persons interested in its estate shall become fixed as of the date of entry of the order of liquidation, except as provided in sections 7058 and 7076 of this title.

(c) An order to liquidate the business of an alien insurer domiciled in this State shall be in the same terms and have the same legal effect as an order to liquidate a domestic insurer, except that the assets of the U.S. branch of the alien insurer shall be the only assets and business included in the order.

(d) At the time of petitioning for an order of liquidation, or at any time thereafter, the Commissioner, after making appropriate findings of an insurer's insolvency, may petition the court for a judicial declaration of such insolvency. After providing such notice and hearing as it deems proper, the court may make the declaration.

(e) Any order issued under this section shall require accounting to the court by the liquidator. Accountings shall include (at a minimum) the assets and liabilities of the insurer and all funds received or disbursed by the liquidator during the current period. Accountings shall be filed within one year of the liquidation order and at least annually thereafter.

(f)(1) No order of liquidation shall be stayed pending appeal unless the persons challenging the order of liquidation on appeal post a bond satisfactory to cover all legal costs of defending the appeal and all loss and expense costs to the estate attributable to the delay by reason of the stay pending appeal.

(2) In the event an order of liquidation is set aside upon any appeal, the company shall not be released from delinquency proceedings unless and until all funds advanced by any guaranty association, including reasonable administrative expenses in connection therewith relating to obligations of the company, shall be repaid in full, together with interest at the judgment rate of interest or unless an arrangement for repayment thereof has been made with the consent of all applicable guaranty associations.
8 V.S.A. § 7080 — VT Code / Title 8 / Chapter 145 / Section 7080
§ 7080. Secured creditor's claims
Status: in_force

(a) The value of any security held by a secured creditor shall be determined in one of the following ways, as the court may direct:

(1) by converting the same into money according to the terms of the agreement pursuant to which the security was delivered to such creditors; or

(2) by agreement, arbitration, compromise, or litigation between the creditor and the liquidator.

(b) The determination made under subsection (a) of this section shall be under the supervision and control of the court with due regard for the recommendation of the liquidator. The amount so determined shall be credited upon the secured claim, and any deficiency shall be treated as an unsecured claim. If the claimant shall surrender his or her security to the liquidator, the entire claim shall be allowed as if unsecured.
8 V.S.A. § 4813n — VT Code / Title 8 / Chapter 131 / Section 4813n
§ 4813n. Reciprocity
Status: in_force

(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 to residents of this State on the same basis.

(b) A nonresident producer's satisfaction of his or her home state's continuing education requirements for licensed insurance producers shall constitute satisfaction of this State's continuing education requirements if the nonresident producer's home state recognizes the satisfaction of its continuing education requirements imposed upon producers from this State on the same basis.
8 V.S.A. § 32704 — VT Code / Title 8 / Chapter 222 / Section 32704
§ 32704. Limitation on loans to and investments in a CUSO
Status: in_force

(a) A credit union may invest its funds in or make loans to a CUSO, provided the total of any such investment in or loan to any one CUSO does not exceed two percent of the total paid-in and unimpaired capital and surplus and share deposits as of its last calendar year-end financial report of the credit union without regard to the amount derived from the profitability of such CUSO.

(b) As used in subsection (a) of this section:

(1) paid-in and unimpaired capital and surplus means shares plus postclosing, undivided earnings (this does not include regular reserves or special reserves required by law, regulation, or special agreement between the credit union and its regulator or share insurer); and

(2) total investments in and total loans to CUSO will be measured consistent with generally accepted accounting principles.

(c) If the Commissioner determines that a credit union's investments in or loans to any CUSO exceed the limitations of this section or are otherwise not prudent for the credit union to maintain, the Commissioner may require the credit union to divest such loans or investments.
8 V.S.A. § 3842 — VT Code / Title 8 / Chapter 103 / Section 3842
§ 3842. Disclosure to insurer
Status: in_force

Thirty days prior to the execution of a life settlement contract or the execution or other affirmation of an agreement or arrangement to enter into a life settlement contract, a life settlement provider shall provide notice to the insurer that issued or has assumed the policy, provided the contract, agreement or arrangement is executed or otherwise affirmed prior to, or during the first five years after issuance of a policy. The notice shall contain information identifying the policy and the policy owner, if applicable, and a copy of the proposed life settlement contract.
8 V.S.A. § 3766 — VT Code / Title 8 / Chapter 103 / Section 3766
§ 3766. Calculation of adjusted premiums; ordinary policies
Status: in_force

(a) This section does not apply to ordinary policies issued on or after the operative date of section 3768 of this subchapter. In the case of ordinary policies issued on or after the operative date of this section, all adjusted premiums and present values referred to in this subchapter shall be calculated on the basis of the Commissioners' 1958 Standard Ordinary Mortality Table and the rate of interest specified in the policy for calculating cash surrender values and paid-up nonforfeiture benefits, provided that such rate of interest shall not exceed three and one-half percent per annum, except that a rate of interest not exceeding four percent per annum may be used for policies issued on or after April 12, 1973, and prior to January 1, 1980, and a rate of interest not exceeding five and one-half percent per annum may be used for policies issued on or after January 1, 1980, except that for any single premium whole life or endowment insurance policy, a rate of interest not exceeding six and one-half percent per annum may be used, provided that for any category of ordinary insurance issued on female risks, adjusted premiums and present values may be calculated according to an age not more than six years younger than the actual age of the insured. In calculating the present value of any paid-up term insurance with accompanying pure endowment, if any, offered as a nonforfeiture benefit, the rates of mortality assumed may not be more than those shown in the Commissioners' 1958 Extended Term Insurance Table. For insurance issued on a substandard basis, the calculation of any adjusted premiums and present values may be based on such other table of mortality as may be specified by the company and approved by the Commissioner.

(b) After the effective date of this section, any company may file with the Commissioner a written notice of its election to comply with the provisions of this section after a specified date before January 1, 1966. After the filing of such notice, upon the specified date (which shall be the operative date of this section for that company), this section shall become operative with respect to the ordinary policies thereafter issued by the company. If a company makes no election, the operative date of this section for the company shall be January 1, 1966.
8 V.S.A. § 14501 — VT Code / Title 8 / Chapter 204 / Section 14501
§ 14501. Failure to pay rent; removal of contents
Status: in_force

(a) If the amount due for the use of any safe or box in the vaults of a financial institution is not paid for one year, or such other period as may be fixed in the contract of renting of such safe or box, the financial institution, at the expiration thereof, may cause to be sent to the person in whose name the safe or box stands on its books, a notice in writing that if the amount then due for the use of the safe or box is not paid within 60 days from the date of the notice, the financial institution will then cause the safe or box to be opened in the presence of an officer duly authorized by the governing body and of a notary public not an officer or in the employ of the financial institution, and the contents thereof, if any, will be sealed up by the notary in a package upon which the notary will distinctly mark the name and address of the person in whose name such safe or box stands upon the books of the financial institution and the estimated value thereof. The package so sealed and addressed, when marked for identification by the notary, will be placed by the notary in one of the general safes or boxes of such financial institution. The notice shall be sent in a postage prepaid registered letter directed to that person at his or her post office address as recorded upon the books of the financial institution, and at his or her last known address.

(b) The proceedings of the notary shall be fully set forth in the notary's own handwriting and official seal in a book to be kept by the financial institution for that purpose. After such contents have been so placed in general safes or boxes, the financial institution shall be required to use only the degree of care required of a bailee for the sole benefit of the bailor notwithstanding the contract of renting requires a higher degree of care during the period of renting.
8 V.S.A. § 4470 — VT Code / Title 8 / Chapter 121 / Section 4470
§ 4470. Qualifications for membership
Status: in_force

(a) A society may admit to benefit membership any person not less than 15 years of age, at his or her nearest birthday, who has furnished evidence of insurability acceptable to the society. A member who applies for additional benefits more than six months after becoming a benefit member shall furnish additional evidence of insurability acceptable to the society.

(b) A person admitted before becoming 18 years of age is bound by the terms of the application and certificate and by all the laws and rules of the society and is entitled to all the rights and privileges of membership to the same extent as though the age of majority had been reached at the time of application. A society may also admit general or social members who shall have no voice or vote in the management of its insurance affairs.
8 V.S.A. § 2502 — VT Code / Title 8 / Chapter 79 / Section 2502
§ 2502. Relationship to federal law
Status: in_force

(a) In the event state money transmission jurisdiction is conditioned on a federal law, any inconsistencies between a provision of this chapter and the federal law governing money transmission shall be governed by the applicable federal law to the extent of the inconsistency.

(b) In the event of any inconsistencies between this chapter and a federal law that governs pursuant to subsection (a) of this section, the Commissioner may provide interpretive guidance that:

(1) identifies the inconsistency; and

(2) identifies the appropriate means of compliance with federal law.
8 V.S.A. § 8510 — VT Code / Title 8 / Chapter 165 / Section 8510
§ 8510. Finance
Status: in_force

(a) The Commission shall pay or provide for the payment of the reasonable expenses of its establishment and organization. To fund the cost of its initial operations, the Commission may accept contributions and other forms of funding from the National Association of Insurance Commissioners, compacting states, and other sources. Contributions and other forms of funding from other sources shall be of such a nature that the independence of the Commission concerning the performance of its duties shall not be compromised.

(b) The Commission shall collect a filing fee from each insurer and third-party filer filing a product with the Commission to cover the cost of the operations and activities of the Commission and its staff in a total amount sufficient to cover the Commission's annual budget.

(c) The Commission's budget for a fiscal year shall not be approved until it has been subject to notice and comment as set forth in section 8505 of this chapter.

(d) The Commission shall be exempt from all taxation in and by the compacting states.

(e) The Commission shall not pledge the credit of any compacting state, except by and with the appropriate legal authority of that compacting state.

(f) The Commission shall keep complete and accurate accounts of all its internal receipts, including grants and donations, and disbursements of all funds under its control. The internal financial accounts of the Commission shall be subject to the accounting procedures established under its bylaws. The financial accounts and reports including the system of internal controls and procedures of the Commission shall be audited annually by an independent certified public accountant. Upon the determination of the Commission, but no less frequently than every three years, the review of the independent auditor shall include a management and performance audit of the Commission. The Commission shall make an annual report to the governors and legislatures of the compacting states, which shall include a report of the independent audit. The Commission's internal accounts shall not be confidential and such materials may be shared with the Commissioner of any compacting state upon request; provided, however, that any work papers related to any internal or independent audit, and any information regarding the privacy of individuals and insurers' proprietary information, including trade secrets, shall remain confidential.

(g) No compacting state shall have any claim to or ownership of any property held by or vested in the Commission or to any Commission funds held pursuant to the provisions of this compact.
8 V.S.A. § 6033 — VT Code / Title 8 / Chapter 141 / Section 6033
§ 6033. Supplemental application materials
Status: in_force

In addition to the information required by subdivisions 6002(c)(1) and (2) of this title, and subject to the confidentiality provisions of subdivision 6002(c)(3) of this title, each applicant-sponsored captive insurance company shall file with the Commissioner the following:

(1) materials demonstrating how the applicant will account for the loss and expense experience of each protected cell at a level of detail found to be sufficient by the Commissioner and how it will report such experience to the Commissioner;

(2) a statement acknowledging that all financial records of the sponsored captive insurance company, including records pertaining to any protected cells, shall be made available for inspection or examination by the Commissioner or the Commissioner's designated agent;

(3) all contracts or sample contracts between the sponsored captive insurance company and any participants; and

(4) evidence that expenses shall be allocated to each protected cell in a fair and equitable manner.
8 V.S.A. § 3439 — VT Code / Title 8 / Chapter 101 / Section 3439
§ 3439. Effects of redomestication
Status: in_force

Upon redomestication in accordance with section 3437 of this title, the foreign or alien insurer shall become a domestic insurer organized under the laws of this State and have all the rights, privileges, immunities, and powers, and be subject to all applicable laws, duties, and liabilities, of domestic insurers of the same type. Such domestic insurer shall thereupon and thereafter possess all rights that obtained prior to the redomestication to the extent permitted by the laws of this State, and thenceforth be responsible and liable for all the liabilities and obligations that obtained prior to the redomestication. The certificate of authority, agents, appointments and licenses, rates, and other items that the Commissioner of insurance allows, in his or her discretion, that are in existence at the time any insurer licensed to transact the business of insurance in this State transfers its corporate domicile to this or any other state or jurisdiction by redomestication, shall continue in full force and effect upon such transfer if such insurer remains duly qualified to transact the business of insurance in this State. All transferring insurers qualified in this State shall notify the Commissioner of the transfer of domicile and shall provide the Commissioner such information and documentation as the Commissioner may request. All outstanding policies of any transferring insurer shall remain in full force and effect.
8 V.S.A. § 3687 — VT Code / Title 8 / Chapter 101 / Section 3687
§ 3687. Confidential treatment
Status: in_force

(a) Documents, materials, or other information in the possession or control of the Department that are obtained by or disclosed to the Commissioner or any other person in the course of an examination or investigation made pursuant to section 3686 of this title and all information reported pursuant to subdivisions 3683(b)(12) and (13), section 3684, and section 3685 of this chapter are recognized by this State as being proprietary and to contain trade secrets and shall be given confidential treatment, shall not be subject to subpoena, shall not be subject to public inspection and copying under the Public Records Act, shall not be subject to discovery or admissible in evidence in any private civil action, and shall not be made public by the Commissioner or any other person. However, the Commissioner is authorized to use the documents, materials, or other information in the furtherance of any regulatory or legal action brought as a part of the Commissioner's official duties. The Commissioner shall not otherwise make the documents, materials, or other information public without the prior written consent of the insurer to which it pertains unless the Commissioner, after giving the insurer and its affiliates who would be affected thereby notice and opportunity to be heard, determines that the interests of policyholders, shareholders, or the public will be served by the publication thereof, in which event the Commissioner may publish all or any part thereof in such manner as the Commissioner may deem appropriate.

(1) For purposes of the information reported and provided to the Department pursuant to subdivision 3684(m)(2) of this chapter, the Commissioner shall maintain the confidentiality of the group capital calculation and group capital ratio produced within the calculation and any group capital information received from an insurance holding company supervised by the Federal Reserve Board or any U.S. groupwide supervisor.

(2) For purposes of the information reported and provided to the Department pursuant to subdivision 3684(m)(3) of this chapter, the Commissioner shall maintain the confidentiality of the liquidity stress test results and supporting disclosures and any liquidity stress test information received from an insurance holding company supervised by the Federal Reserve Board and non-U.S. groupwide supervisors.

(b) Neither the Commissioner nor any person who received documents, materials, or other information while acting under the authority of the Commissioner or with whom such documents, materials, or other information are shared pursuant to this chapter shall be permitted or required to testify in any private civil action concerning any confidential documents, materials, or information subject to subsection (a) of this section.

(c) In order to assist in the performance of the Commissioner's duties, the Commissioner:

(1) May share documents, materials, or other information, including the confidential and privileged documents, materials, or information subject to subsection (a) of this section, including proprietary and trade secret documents and materials, with other state, federal, and international regulatory agencies, with the NAIC, with third-party consultants designated by the Commissioner, and with state, federal, and international law enforcement authorities, including members of any supervisory college described in section 3695 of this title, provided that the recipient agrees in writing to maintain the confidentiality and privileged status of the document, material, or other information and has verified in writing the legal authority to maintain confidentiality.

(2) Notwithstanding subdivision (1) of this subsection, may only share confidential and privileged documents, material, or information reported pursuant to subdivision 3684(m)(1) of this chapter with commissioners of states having statutes or regulations substantially similar to subsection (a) of this section and who have agreed in writing not to disclose such information.

(3) May receive documents, materials, or information, including otherwise confidential and privileged documents, materials, or information, including proprietary and trade-secret information, from the NAIC and its affiliates and subsidiaries and from regulatory and law enforcement officials of other foreign or domestic jurisdictions and shall maintain as confidential or privileged any document, material, or information received with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material, or information.

(4) Shall enter into written agreements with the NAIC and any third-party consultant designated by the Commissioner governing sharing and use of information provided under this chapter consistent with this subsection that shall:

(A) Specify procedures and protocols regarding the confidentiality and security of information shared with the NAIC or a third-party consultant designated by the Commissioner pursuant to this subchapter, including procedures and protocols for sharing by the NAIC with other state, federal, or international regulators. The agreement shall provide that the recipient agrees in writing to maintain the confidentiality and privileged status of the documents, materials, or other information and has verified in writing the legal authority to maintain such confidentiality.

(B) Specify that ownership of information shared with the NAIC or a third-party consultant pursuant to this section remains with the Commissioner and the NAIC's use of the information is subject to the direction of the Commissioner.

(C) Excluding documents, materials, or information reported pursuant to subdivision 3684(m)(3) of this title, prohibit the NAIC or third-party consultant designated by the Commissioner from storing the information shared pursuant to this subchapter in a permanent database after the underlying analysis is completed.

(D) Require prompt notice be given to an insurer whose confidential information in the possession of the NAIC or third-party consultant designated by the Commissioner under this subchapter is subject to a request or subpoena to the NAIC or a third-party consultant designated by the Commissioner for disclosure or production.

(E) Require the NAIC or a third-party consultant designated by the Commissioner to consent to intervention by an insurer in any judicial or administrative action in which the NAIC or third-party consultant designated by the Commissioner may be required to disclose confidential information about the insurer shared with the NAIC or third-party consultant designated by the Commissioner pursuant to this section.

(F) For documents, materials, or information report pursuant to subdivision 3684(b)(3) of this chapter, in the case of an agreement involving a third-party consultant, provide for notification of the identity of the consultant to the applicable insurers.

(d) The sharing of information by the Commissioner pursuant to this section shall not constitute a delegation of regulatory authority or rulemaking, and the Commissioner is solely responsible for the administration, execution, and enforcement of the provisions of this section.

(e) No waiver of any applicable privilege or claim of confidentiality in the documents, materials, or information shall occur as a result of disclosure to the Commissioner under this section or as a result of sharing as authorized in subsection (c) of this section.

(f) Documents, materials, or other information in the possession or control of the NAIC or third-party consultant designated by the Commissioner pursuant to this subchapter shall be confidential by law and privileged, shall not be subject to public inspection and copying under the Public Records Act, shall not be subject to subpoena, shall not be subject to discovery or admissible in evidence in any private civil action, and shall not be made public by the Commissioner or any other person.

(g) The group capital calculation and resulting group capital ratio required under subdivision 3684(m)(2) of this subchapter and the liquidity stress test along with its results and supporting disclosures required under subdivision 3684(m)(3) of this subchapter are regulatory tools for assessing group risks and capital adequacy and group liquidity risks, respectively, and are not intended as a means to rank insurers or insurance holding company systems, generally. Therefore, except as otherwise may be required under the provisions of this chapter, the making, publishing, disseminating, circulating or placing before the public, or causing directly or indirectly to be made, published, disseminated, circulated, or placed before the public in a newspaper, magazine, or other publication, or in the form of a notice, circular, pamphlet, letter, or poster, or over any radio or television station or any electronic means of communication available to the public, or in any other way as an advertisement, announcement, or statement containing a representation or statement with regard to the group capital calculation, group capital ratio, the liquidity stress test results, or supporting disclosures for the liquidity stress test of any insurer or any insurer group, or of any component derived in the calculation by any insurer, broker, or other person engaged in any manner in the insurance business would be misleading and is therefore prohibited. However, if any materially false statement with respect to the group capital calculation, resulting group capital ratio, an inappropriate comparison of any amount to an insurer's or insurance group's group capital calculation or resulting group capital ratio, liquidity stress test result, supporting disclosures for the liquidity stress test, or an inappropriate comparison of any amount to an insurer's or insurance group's liquidity stress test result or supporting disclosures is published in any written publication and the insurer is able to demonstrate to the Commissioner with substantial proof the falsity of such statement or the inappropriateness, as the case may be, then the insurer may publish announcements in a written publication if the sole purpose of the announcement is to rebut the materially false statement.
8 V.S.A. § 14401 — VT Code / Title 8 / Chapter 204 / Section 14401
§ 14401. Types of trust functions
Status: in_force

(a) With the prior approval of its governing board, a financial institution may act alone or with others as:

(1) fiduciary;

(2) custodian of property;

(3) agent or attorney in fact;

(4) registrar or transfer agent of securities;

(5) trustees under corporate mortgages, trust deeds or similar indentures; or

(6) fiscal agent of the United States, a political subdivision thereof, a body politic, a corporation, or an individual.

(b) With that approval, a financial institution may also be appointed and act as executor or coexecutor of a will, codicil, or writing testamentary, as administrator or co-administrator with the will annexed, as administrator or co-administrator of a person deceased, as receiver, assignee, trustee, alone or with others, or as guardian or co-guardian of a person subject to guardianship, and with that approval may relinquish the fiduciary office, under the same circumstances, in the same manner and subject to the same control by a court having jurisdiction, as a natural person legally qualified.
8 V.S.A. § 3461a — VT Code / Title 8 / Chapter 101 / Section 3461a
§ 3461a. General limitations and diversification requirements for property and casualty, financial guaranty and mortgage guaranty insurers
Status: in_force

(a) General five percent diversification.

(1) Except as otherwise specified in this subchapter, a domestic property and casualty, financial guaranty or mortgage guaranty insurer shall not acquire directly or indirectly through an investment subsidiary an investment under this subchapter if, as a result of and after giving effect to the investment, the insurer would hold more than five percent of its admitted assets in investments of all kinds issued, assumed, accepted, insured, or guaranteed by a single person.

(2) This five percent limitation shall not apply to the aggregate amounts insured by a single financial guaranty insurer with the highest generic rating issued by a nationally recognized statistical rating organization.

(3) Asset-backed securities shall not be subject to the limitations of subdivision (1) of this subsection; however, an insurer shall not acquire an asset-backed security if, as a result of and after giving effect to the investment, the aggregate amount of asset-backed securities secured by or evidencing an interest in a single asset or single pool of assets held by a trust or other business entity then held by the insurer would exceed five percent of its admitted assets.

(b) An insurer subject to this section shall comply with applicable regulations addressing investments in lower and medium grade obligations.

(c) Canadian investments.

(1) An insurer subject to this section shall not acquire, directly or indirectly through an investment subsidiary, any Canadian investments authorized by this subchapter, if, as a result of and after giving effect to the investment, the aggregate amount of these investments then held by the insurer would exceed 40 percent of its admitted assets or if the aggregate amount of Canadian investments not acquired under subdivision 3461c(2) of this subchapter then held by the insurer would exceed 25 percent of its admitted assets.

(2) However, as to an insurer that is authorized to do business in Canada or that has outstanding insurance, annuity or reinsurance contracts on lives or risks resident or located in Canada and denominated in Canadian currency, the limitations of subdivision (1) of this subsection shall be increased by the greater of:

(A) the amount the insurer is required by Canadian law to invest in Canada or to be denominated in Canadian currency; or

(B) 125 percent of the amount of its reserves and other obligations under contracts on risks resident or located in Canada.
8 V.S.A. § 7035 — VT Code / Title 8 / Chapter 145 / Section 7035
§ 7035. Continuation of delinquency proceedings
Status: in_force

Every proceeding heretofore commenced under the laws in effect before May 29, 1991, except a liquidation proceeding in which a liquidation order has been entered by the Superior Court, shall be deemed to have commenced under this chapter for the purpose of conducting the proceeding henceforth, except that in the discretion of the Commissioner the proceeding may be continued, in whole or in part, as it would have been continued had this chapter not been enacted.
8 V.S.A. § 11604 — VT Code / Title 8 / Chapter 201 / Section 11604
§ 11604. Indemnification
Status: in_force

A financial institution shall not indemnify any person for any penalty or fine imposed under this title.
8 V.S.A. § 32711 — VT Code / Title 8 / Chapter 222 / Section 32711
§ 32711. Rules
Status: in_force

The Commissioner may adopt such additional rules governing CUSOs as the Commissioner deems appropriate.
8 V.S.A. § 4098a — VT Code / Title 8 / Chapter 107 / Section 4098a
§ 4098a. Coverage of health care services delivered through telemedicine and by store-and-forward means
Status: in_force

(a) As used in this section:

(1) “Distant site” means the location of the health care provider delivering services through telemedicine at the time the services are provided.

(2) “Health insurance plan” has the same meaning as in section 4011 of this title and also includes a stand-alone dental plan or policy or other dental insurance plan offered by a dental insurer.

(3) “Health care facility” has the same meaning as in 18 V.S.A. § 9402.

(4) “Health care provider” means a person, partnership, or corporation, other than a facility or institution, that is licensed, certified, or otherwise authorized by law to provide professional health care services, including dental services, in this State to an individual during that individual's medical care, treatment, or confinement.

(5) “Originating site” means the location of the patient, whether or not accompanied by a health care provider, at the time services are provided by a health care provider through telemedicine, including a health care provider's office, a hospital, or a health care facility, or the patient's home or another nonmedical environment such as a school-based health center, a university-based health center, or the patient's workplace.

(6) “Store-and-forward” means an asynchronous transmission of medical information, such as one or more video clips, audio clips, still images, x-rays, magnetic resonance imaging scans, electrocardiograms, electroencephalograms, or laboratory results, sent over a secure connection that complies with the requirements of the Health Insurance Portability and Accountability Act of 1996, Pub. L. No. 104-191, to be reviewed at a later date by a health care provider at a distant site who is trained in the relevant specialty. In store-and-forward, the health care provider at the distant site reviews the medical information without the patient present in real time and communicates a care plan or treatment recommendation back to the patient or referring provider, or both.

(7) “Telemedicine” means the delivery of health care services, including dental services, such as diagnosis, consultation, or treatment, through the use of live interactive audio and video over a secure connection that complies with the requirements of the Health Insurance Portability and Accountability Act of 1996, Pub. L. No. 104-191.

(b)(1) A health insurance plan shall provide coverage for health care services and dental services delivered through telemedicine by a health care provider at a distant site to a covered individual at an originating site to the same extent that the plan would cover the services if they were provided through in-person consultation.

(2)(A) A health insurance plan shall provide the same reimbursement rate for services billed using equivalent procedure codes and modifiers, subject to the terms of the health insurance plan and provider contract, regardless of whether the service was provided through an in-person visit with the health care provider or through telemedicine.

(B) The provisions of subdivision (A) of this subdivision (2) shall not apply:

(i) to services provided pursuant to the health insurance plan's contract with a third-party telemedicine vendor to provide health care or dental services; or

(ii) in the event that a health insurer and health care provider enter into a value-based contract for health care services that include care delivered through telemedicine or by store-and-forward means.

(c) A health insurance plan may charge a deductible, co-payment, or coinsurance for a health care service or dental service provided through telemedicine as long as it does not exceed the deductible, co-payment, or coinsurance applicable to an in-person consultation.

(d) A health insurance plan may limit coverage to health care providers in the plan's network. A health insurance plan shall not impose limitations on the number of telemedicine consultations a covered individual may receive that exceed limitations otherwise placed on in-person covered services.

(e) Nothing in this section shall be construed to prohibit a health insurance plan from providing coverage for only those services that are medically necessary and are clinically appropriate for delivery through telemedicine, subject to the terms and conditions of the covered individual's policy.

(f)(1) A health insurance plan shall reimburse for health care services and dental services delivered by store-and-forward means.

(2) A health insurance plan shall not impose more than one cost-sharing requirement on a covered individual for receipt of health care services or dental services delivered by store-and-forward means. If the services would require cost sharing under the terms of the covered individual's health insurance plan, the plan may impose the cost sharing requirement on the services of the originating site health care provider or of the distant site health care provider, but not both.

(g) A health insurance plan shall not construe a covered individual's receipt of services delivered through telemedicine or by store-and-forward means as limiting in any way the covered individual's ability to receive additional covered in-person services from the same or a different health care provider for diagnosis or treatment of the same condition.

(h) Nothing in this section shall be construed to require a health insurance plan to reimburse the distant site health care provider if the distant site health care provider has insufficient information to render an opinion.

(i) In order to facilitate the use of telemedicine in treating substance use disorder, when the originating site is a health care facility, health insurers and the Department of Vermont Health Access shall ensure that the health care provider at the distant site and the health care facility at the originating site are both reimbursed for the services rendered, unless the health care providers at both the distant and originating sites are employed by the same entity.

(j) This section shall apply to Medicaid and any other public health care assistance program offered or administered by the State or by any subdivision or instrumentality of the State. (Recodified and amended 2025, No. 11, § 2, eff. September 1, 2025.)
8 V.S.A. § 4589 — VT Code / Title 8 / Chapter 125 / Section 4589
§ 4589. Investments
Status: in_force

Funds of a medical service corporation may be invested in any prudent investment as permitted for an insurance company formed under chapter 101 of this title. The corporation shall file and obtain the Commissioner's prior approval of its investment guidelines. Any amendments to the investment guidelines must be approved by the Commissioner prior to use.
8 V.S.A. § 6036 — VT Code / Title 8 / Chapter 141 / Section 6036
§ 6036. Participants in sponsored captive insurance companies
Status: in_force

(a) Associations, corporations, limited liability companies, partnerships, trusts, risk retention groups, sole proprietorships, and other business entities may be participants in any sponsored captive insurance company formed or licensed under this chapter.

(b) A sponsor may be a participant in a sponsored captive insurance company.

(c) A participant need not be a shareholder of the sponsored captive insurance company or any affiliate thereof.

(d) A participant shall not insure any risks other than its own and the risks of affiliated entities or of controlled unaffiliated entities.
8 V.S.A. § 3791q — VT Code / Title 8 / Chapter 103 / Section 3791q
§ 3791q. Confidentiality
Status: in_force

(a) As used in this subchapter, “confidential information” means:

(1) a memorandum in support of an opinion submitted under section 3791c of this subchapter and any other documents, materials, and information, including all working papers and copies thereof, created, produced, or obtained by or disclosed to the Commissioner or any other person in connection with such memorandum;

(2) all documents, materials, and other information, including all working papers and copies thereof, created, produced, or obtained by or disclosed to the Commissioner or any other person in the course of an examination made under subsection 3791n(f) of this subchapter; provided, however, that if an examination report or other material prepared in connection with an examination made under chapter 101, subchapter 7 of this title is not held as private and confidential information under such subchapter, an examination report or other material prepared in connection with an examination made under subsection 3791n(f) of this subchapter shall not be “confidential information” to the same extent as if such examination report or other material had been prepared under chapter 101, subchapter 7 of this title;

(3) any reports, documents, materials, and other information developed by a company in support of, or in connection with, an annual certification by the company under subdivision 3791o(b)(2) of this subchapter evaluating the effectiveness of the company's internal controls with respect to a principle-based valuation and any other documents, materials, and other information, including all working papers and copies thereof, created, produced, or obtained by or disclosed to the Commissioner or any other person in connection with such reports, documents, materials, and other information;

(4) any principle-based valuation report developed under subdivision 3791o(b)(3) of this subchapter and any other documents, materials, and other information, including all working papers and copies thereof, created, produced, or obtained by or disclosed to the Commissioner or any other person in connection with such report; and

(5) any documents, materials, data, and other information submitted by a company under section 3791p of this subchapter—collectively, “experience data”—and any other documents, materials, data, and other information, including all working papers and copies thereof, created or produced in connection with such experience data, in each case that include any potentially company-identifying or personally identifiable information, that is provided to or obtained by the Commissioner, together with any experience data, and other experience materials, and any other documents, materials, data, and other information, including all working papers and copies thereof, created, produced, or obtained by or disclosed to the Commissioner or any other person in connection with such experience materials.

(b) Except as provided in this section, a company's confidential information is confidential by law and privileged, and shall be exempt from public inspection and copying under the Public Records Act, shall not be subject to subpoena, and shall not be subject to discovery or admissible in evidence in any private civil action; provided, however, that the Commissioner is authorized to use the confidential information in the furtherance of any regulatory or legal action brought against the company as a part of the Commissioner's official duties.

(c) Neither the Commissioner nor any person who received confidential information while acting under the authority of the Commissioner shall be permitted or required to testify in any private civil action concerning any confidential information.

(d) In order to assist in the performance of the Commissioner's duties, the Commissioner may share confidential information:

(1) with other state, federal, and international regulatory agencies and with the NAIC and its affiliates and subsidiaries; and

(2) in the case of confidential information specified in subdivisions (a)(1) and (a)(4) of this section only, with the Actuarial Board for Counseling and Discipline or its successor upon request stating that the confidential information is required for the purpose of professional disciplinary proceedings and with State, federal, and international law enforcement officials; in the case of this subdivision and subdivision (1) of this subsection (d), provided that such recipient agrees, and has the legal authority to agree, to maintain the confidentiality and privileged status of such documents, materials, data, and other information in the same manner and to the same extent as required for the Commissioner.

(e) The Commissioner may receive documents, materials, data, and other information, including otherwise confidential and privileged documents, materials, data, or information, from the NAIC and its affiliates and subsidiaries, from regulatory or law enforcement officials of other foreign or domestic jurisdictions and from the Actuarial Board for Counseling and Discipline, or its successor, and shall maintain as confidential or privileged any document, material, data, or other information received with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material, or other information.

(f) The Commissioner may enter into agreements governing sharing and use of information consistent with subsection (b) of this section.

(g) No waiver of any applicable privilege or claim of confidentiality in the confidential information shall occur as a result of disclosure to the Commissioner under this section or as a result of sharing as authorized in subdivision (b)(3) of this section.

(h) A privilege established under the law of any state or jurisdiction that is substantially similar to the privilege established under subsection (b) of this section shall be available and enforced in any proceeding in, and in any court of, this State.

(i) As used in this section, “regulatory agency,” “law enforcement agency,” and the NAIC include their employees, agents, consultants, and contractors.

(j) Notwithstanding any provision in this section to the contrary, any confidential information specified in subdivision (a)(1) or (a)(4) of this section:

(1) may be subject to subpoena for the purpose of defending an action seeking damages from the appointed actuary submitting the related memorandum in support of an opinion submitted under section 3791c of this subchapter or principle-based valuation report developed under subdivision 3791o(b)(3) of this subchapter by reason of an action required by this subchapter or by rules adopted hereunder;

(2) may otherwise be released by the Commissioner with the written consent of the company; and

(3) once any portion of a memorandum in support of an opinion submitted under section 3791c of this subchapter or a principle-based valuation report developed under subdivision 3791o(b)(3) of this subchapter is cited by the company in its marketing or is publicly volunteered to or before a governmental agency other than a state insurance department or is released by the company to the news media, all portions of such memorandum or report shall no longer be confidential.
8 V.S.A. § 5029 — VT Code / Title 8 / Chapter 138 / Section 5029
§ 5029. Surplus lines insurance valid
Status: in_force

(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 insurance trade practices provisions of sections 4723 and 4724(1)-(7) and (9)-(18) of this title, and the cancellation provisions of sections 3879-3883 (regarding fire and casualty policies) and 4711-4715 (regarding commercial risk policies) of this title shall apply to surplus lines insurers, both domestic and foreign.

(c) Other provisions of this title not specifically applicable to surplus lines insurers shall not apply.
8 V.S.A. § 17502 — VT Code / Title 8 / Chapter 207 / Section 17502
§ 17502. Assumption of liabilities
Status: in_force

(a) Assumption of liabilities. Subject to the approval of the Commissioner, any Vermont financial institution may, by contract, assume all or any part of the deposit and other liability of any other financial institution or financial institutions and may accept in payment or part payment for the obligations so assumed all or any part of the assets of the other financial institution or may so accept in payment or part payment, the notes or other undertakings of the other financial institution secured by a pledge to the assuming financial institution, or secured by any other lien or trust for its benefit, with respect to all or any part of the assets of the other financial institution or financial institutions, at least equal in value to the amount of the deposit liability assumed. Such contracts of assumption, notes, undertakings, liens, or trust agreements may be in any form approved by the Commissioner that provides for equality of treatment of all depositors and for the full payment of all assumed deposits on demand. All depositors whose deposits are so assumed shall be notified by mail of the assumption and any depositor objecting to the assumption within 60 days after that notice shall be paid the full amount of the assumed deposit, with interest to the date of the objection, computed at the proportional part of the interest rate to be paid for that period by the Vermont financial institution on other deposits or, if no rate has been determined, at the rate for the interest period next preceding the notice, not to exceed the rate prescribed by the directors for the then current period, if a rate has been so prescribed for the period.

(b) Contracts for assumption of deposit liability. Contracts for the assumption of deposit liability may be entered into independently of merger of financial institutions or as a part of any such merger, and the Commissioner may authorize under the provisions of chapter 205 of this title the assuming financial institution to establish a branch at any location at which the other financial institution might have conducted its business. However, such a contract shall not be valid unless the governing bodies of the signatory financial institutions have been authorized to act by a vote of the investors or mutual voters of the financial institutions. That authorization requires the affirmative vote, in the case of a mutual or cooperative financial institution, of a majority of the mutual voters, and in the case of an investor- owned financial institution, requires the vote provided in its organizational documents for amending the charter and in any event, at least the affirmative vote of a majority of the equity interests, as well as the affirmative vote of a majority of each class of equity interest present and voting at the meeting. All classes of equity interests may vote on the question whether or not the rights of any class to vote generally have been suspended under the terms of the charter by reason of nonpayment of dividends.
8 V.S.A. § 4207 — VT Code / Title 8 / Chapter 113 / Section 4207
§ 4207. Penalty for unauthorized alterations
Status: in_force

An alteration of a written application for insurance by erasure, insertion, or otherwise shall not be made by a person other than the applicant without his or her written consent, and a person making such alteration without the consent of the applicant shall pay an administrative penalty of not more than $2,000.00. If such alteration is made by an officer of the insurer, or by an employee of the insurer with the insurer's knowledge or consent, such act shall be deemed to have been performed by the insurer thereafter issuing the policy upon such altered application.
8 V.S.A. § 2256 — VT Code / Title 8 / Chapter 74 / Section 2256
§ 2256. Examinations
Status: in_force

For the purpose of protecting consumer interests and determining a company's financial stability and compliance with the requirements of this chapter, the Commissioner may conduct an examination of a company engaged in the business of consumer litigation funding as often as the Commissioner deems necessary.