8 V.S.A. § 3309 — VT Code / Title 8 / Chapter 101 / Section 3309
§ 3309. Mutual insurers to commence business; when
Status: in_force

(a) A corporation that, according to its charter, is not to have a capital stock shall not receive authorization to commence business until:

(1) it complies with preliminary requirements for the procurement of an adequate amount of subscriptions for insurance and possesses and thereafter maintains unimpaired basic surplus of not less than $2,000,000.00 and, when first authorized, shall possess free surplus of not less than $3,000,000.00; and

(2) the Commissioner has considered the criteria in section 3361 of this chapter.

(b) The Commissioner in his or her discretion may establish lesser surplus amount requirements in the case of affiliated corporations jointly conducting the business of insurance under a pooling agreement. Such surplus shall be in the form of cash or marketable securities, a portion of which may be held on deposit with the State Treasurer, such securities as designated by the insurer and approved by the Commissioner, in an amount and subject to conditions determined by the Commissioner. The conditions shall include a requirement that any interest or other earnings attributable to cash or marketable securities shall inure to the benefit of the insurer until the Commissioner determines that the deposit must be used for the benefit of the policyholders of the insurer or some other authorized public purpose relating to the regulation of the insurer. The Commissioner may prescribe additional surplus based upon the type, volume, and nature of insurance business transacted.
8 V.S.A. § 8087 — VT Code / Title 8 / Chapter 154 / Section 8087
§ 8087. Prior institutionalization
Status: in_force

No long-term care insurance policy shall condition benefits upon a period of prior hospitalization or upon admission to a facility for the same or related condition that led to hospitalization or admission to the facility.
8 V.S.A. § 3963 — VT Code / Title 8 / Chapter 105 / Section 3963
§ 3963. Time and place for making valuation
Status: in_force

Upon the receipt of such a request, the Commissioner shall appoint a time and place for making such valuation that shall be not later than 15 days thereafter, unless an earlier date is agreed upon by the parties interested, and he or she shall give proper notice thereof to all concerned.
8 V.S.A. § 8504 — VT Code / Title 8 / Chapter 165 / Section 8504
§ 8504. Meetings and acts of the Commission
Status: in_force

(a) The Commission shall meet and take such actions as are consistent with the provisions of this compact and the bylaws.

(b) Each member of the Commission shall have the right and power to cast a vote to which that compacting state is entitled and to participate in the business and affairs of the Commission. A member shall vote in person or by such other means as provided in the bylaws. The bylaws may provide for members' participation in meetings by telephone or other means of communication.

(c) The Commission shall meet at least once during each calendar year. Additional meetings shall be held as set forth in the bylaws.
8 V.S.A. § 3810a — VT Code / Title 8 / Chapter 103 / Section 3810a
§ 3810a. Associations and discretionary groups
Status: in_force

(a) The lives of a group of individuals may be insured under a policy issued to an association, or to the trustees of a fund established or maintained for the benefit of members of an association, which association or trustees shall be deemed the policyholder, to insure members of such association for the benefit of persons other than the association, trustees, or their officials, subject to the following requirements:

(1) The association shall have a minimum of 100 members at the time of incorporation or formation if it has been incorporated or formed outside this State, and a minimum of 25 members at the time of incorporation or formation if it has been incorporated or formed in this State.

(2) The association shall have been organized and maintained in good faith for purposes other than that of obtaining insurance.

(3) The association shall have been in active existence for at least five years.

(4) The association shall have articles of association and bylaws that provide that:

(A) the association holds regular meetings not less than annually to further purposes of the members;

(B) the association collects dues or solicits contributions from members; and

(C) the members have voting privileges and representation on the governing board and committees.

(5)(A) The premium for the policy shall be paid from funds contributed by the association, or by members, or by both, or from funds contributed by the covered persons or from both the covered persons and the association members.

(B) Except as provided in subdivision (C) of this subdivision (5), a policy on which no part of the premium is to be derived from funds contributed by the covered persons specifically for the insurance must insure all eligible persons, except those who reject such coverage in writing.

(C) An insurer may exclude or limit the coverage on any person as to whom evidence of individual insurability is not satisfactory to the insurer.

(6) The amount of insurance under the policy must be based upon some plan precluding anti-selection either by the members or the association.

(b) The lives of a group of individuals may be insured under a policy issued to any other group determined in the discretion of the Commissioner to be substantially similar to those described in this chapter.

(c) The lives of individuals insured under a group policy authorized by this subchapter may continue to be insured following termination of employment, membership, or other affiliation of the individual with the group under a portability group approved by the Commissioner, provided that the group policy complies with all the applicable requirements of this subchapter.
8 V.S.A. § 4075 — VT Code / Title 8 / Chapter 107 / Section 4075
§ 4075. Craniofacial disorders
Status: in_force

(a)(1) A health insurance plan shall provide coverage for diagnosis and medically necessary treatment, including surgical and nonsurgical procedures, for a musculoskeletal disorder that affects any bone or joint in the face, neck, or head and is the result of accident, trauma, congenital defect, developmental defect, or pathology. Subject to subsection (b) of this section, this coverage shall be the same as that provided under the health insurance plan for any other musculoskeletal disorder in the body and shall be covered when the diagnosis or treatment, or both, is prescribed or administered by a physician or a dentist.

(2) This section shall not be construed to require coverage for dental services for the diagnosis or treatment of dental disorders or dental pathology primarily affecting the gums, teeth, or alveolar ridge.

(b) A health insurance plan may require a referral from a health care provider under contract with the plan. (Recodified and amended 2025, No. 11, § 2, eff. September 1, 2025.)
8 V.S.A. § 4581 — VT Code / Title 8 / Chapter 125 / Section 4581
§ 4581. Incorporation of medical service corporations
Status: in_force

(a) Three or more persons licensed by the State Board of Medical Practice to practice medicine and surgery may incorporate under the general law of this State governing corporations for the purpose of forming a medical service corporation, but subject to the provisions of section 4584 of this title.

(b) Subject to the approval of the Commissioner, a medical service corporation may establish, maintain, and operate a hospital service plan as defined in section 4511 of this title. The Commissioner may refuse approval if the Commissioner finds that the rates submitted are excessive, inadequate, or unfairly discriminatory. The contracts of a medical service corporation that operates a hospital service plan under this subsection shall be governed by chapter 123 of this title to the extent that they provide for hospital service benefits, and by this chapter to the extent that the contracts provide for medical service benefits.
8 V.S.A. § 5114 — VT Code / Title 8 / Chapter 139 / Section 5114
§ 5114. Part-time employees
Status: in_force

A health maintenance organization shall not exclude part-time employees or refuse to offer the same benefits to part-time employees as it offers to the employee groups of which the part-time employees would be members if they were full-time employees. The insurer shall offer to include the part-time employees as part of the employer's employee group, at the full rate to be paid by the employer, at a rate prorated between the employer and the employee, or at the employee's expense. “Part-time employee” means any employee who works a minimum of at least 17 1/2 hours per week.
8 V.S.A. § 5108 — VT Code / Title 8 / Chapter 139 / Section 5108
§ 5108. Prohibited practices
Status: in_force

Section 4724 of this title relating to unfair trade practices shall be construed to apply to health maintenance organizations, except to the extent that the Commissioner determines that the nature of health maintenance organizations renders such section clearly inappropriate.
8 V.S.A. § 4476 — VT Code / Title 8 / Chapter 121 / Section 4476
§ 4476. Nonforfeiture benefits, cash surrender values, certificate loans, and other options
Status: in_force

(a) A society may grant paid-up nonforfeiture benefits, cash surrender values, certificate loans, and such other options as its laws may permit. As to certificates issued on and after November 22, 1959, a society shall grant at least one paid-up nonforfeiture benefit, except in the case of pure endowment, annuity or reversionary annuity, contracts, reducing term insurance contracts or contracts of term insurance of uniform amount of 15 years or less expiring before age 66.

(b) In the case of certificates other than those for which reserves are computed in accordance with subsection (d) of this section, the value of every paid-up nonforfeiture benefit and the amount of any cash surrender value, loan or other option granted shall not be less than the excess, if any, of (1) over (2) as follows:

(1) the reserve under the certificate determined on the basis specified in the certificate; and

(2) the sum of any indebtedness to the society on the certificate, including interest due and accrued, and a surrender charge equal to two and one-half percent of the face amount of the certificate, which, in the case of insurance on the lives of children, shall be the ultimate face amount of the certificate, if death benefits provided under the certificate are graded.

(c) However, in the case of certificates issued on a substandard basis or in the case of certificates, the reserves for which are computed upon the American Men Ultimate Table of Mortality, the term of any extended insurance benefit granted including accompanying pure endowment, if any, may be computed upon the rates of mortality not greater than 130 percent of those shown by the mortality table specified in the certificate for the computation of the reserve.

(d) In the case of certificates for which reserves are computed on the Commissioners 1941 Standard Ordinary Mortality Table, the 1941 Standard Industrial Table, or such later tables as are authorized for use by domestic life insurers, every paid-up nonforfeiture benefit and the amount of any cash surrender value, loan, or other option granted shall not be less than the corresponding amount ascertained in accordance with the provisions of the laws of this State applicable to life insurance companies issuing policies containing like insurance benefits based upon such tables.
8 V.S.A. § 19315 — VT Code / Title 8 / Chapter 209 / Section 19315
§ 19315. Appeal
Status: in_force

A person dissatisfied with an order or decree of the Superior judge in any proceeding arising under this chapter may file an appeal as in other cases.
8 V.S.A. § 4047b — VT Code / Title 8 / Chapter 107 / Section 4047b
§ 4047b. Continuation; notice; terms
Status: in_force

(a) A person electing continuation shall notify the health insurer, or the policyholder, or the contractor, or agent for the group if the policyholder did not contract for the policy directly with the health insurer, of such election in writing within 60 days after receiving notice following the occurrence of a qualifying event pursuant to subsection 4047a(e) of this title. Notice of election to continue under the group policy shall be accompanied by the initial contribution, which shall include payment for the period from the qualifying event through the end of the month in which the election is made.

(b) Contributions shall be due on a monthly basis in advance to the health insurer or the health insurer's agent and shall not be more than 102 percent of the group rate for the insurance being continued under the group policy on the due date of each payment. (Recodified and amended 2025, No. 11, § 2, eff. September 1, 2025.)
8 V.S.A. § 6053 — VT Code / Title 8 / Chapter 142 / Section 6053
§ 6053. Risk retention groups not chartered in this State
Status: in_force

Risk retention groups chartered and licensed in states other than this State and seeking to do business as a risk retention group in this State shall comply with the laws of this State as follows:

(1) Notice of operations and designation of Commissioner as agent. Before offering insurance in this State, a risk retention group shall submit to the Commissioner:

(A) a statement identifying the state or states in which the risk retention group is chartered and licensed as a liability insurance company, charter date, its principal place of business, and such other information, including information on its membership, as the Commissioner of this State may require to verify that the risk retention group is qualified under subdivision 6051(11) of this title;

(B) a copy of its plan of operations and feasibility study and revisions of such plan or study submitted to the state in which the risk retention group is chartered and licensed; provided, however, that the provision relating to the submission of a plan of operation or feasibility study shall not apply with respect to any line or classification of liability insurance that:

(i) was defined in the Product Liability Risk Retention Act of 1981 before October 27, 1986; and

(ii) was offered before such date by any risk retention group that had been chartered and operating for not less than three years before such date; and

(iii) the risk retention group shall submit a copy of any revision to its plan of operation or feasibility study required by subsection 6052(b) of this title at the time that such revision has become effective in its chartering state; and

(C) a statement of registration, for which a filing fee shall be determined by the Commissioner, that designates the Commissioner as its agent for the purpose of receiving service of legal documents or process.

(2) Financial condition. Any risk retention group doing business in this State shall submit to the Commissioner:

(A) a copy of the group's financial statement submitted to the state in which the risk retention group is chartered and licensed that shall be certified by an independent public accountant and contain a statement of opinion on loss and loss adjustment expense reserves made by a member of the American Academy of Actuaries or a qualified loss reserve specialist, under criteria established by the National Association of Insurance Commissioners;

(B) a copy of each examination of the risk retention group as certified by the Commissioner or public official conducting the examination; and

(C) upon request by the Commissioner, a copy of any information or document pertaining to any outside audit performed with respect to the risk retention group.

(3) Taxation. Each risk retention group subject to the provisions of this section shall be liable for the payment of premium taxes and taxes on premiums of direct business for risks resident or located within this State as provided in 32 V.S.A. § 8551, and shall report to the Commissioner the net premiums written for risks resident or located within this State. Such risk retention group shall be subject to taxation, and any applicable fines and penalties related thereto, on the same basis as a foreign admitted insurer.

(4) Compliance with Unfair Claims Settlement Practices Law. Any risk retention group, its agents and representatives shall comply with the Unfair Claims Settlement Practices Act of this State, subdivision 4724(9) of this title.

(5) Deceptive, false, or fraudulent practices. Any risk retention group shall comply with subdivisions 4724(1)-(5) of this title regarding deceptive, false, or fraudulent acts or practices.

(6) Examination regarding financial condition. Any risk retention group may be required to submit to an examination by the Commissioner to determine its financial condition if the Commissioner of the jurisdiction in which the group is chartered and licensed has not initiated an examination or does not initiate an examination within 60 days after a request by the Commissioner of this State. Any such examination shall be coordinated to avoid unjustified repetition and conducted in an expeditious manner and in accordance with the Examiner Handbook of the National Association of Insurance Commissioners.

(7) Notice to purchasers. Risk retention groups shall be required to notify purchasers as required by 15 U.S.C. § 3902(a)(1)(I).

(8) Prohibited acts regarding solicitation or sale. The following acts by a risk retention group are hereby prohibited:

(A) the solicitation or sale of insurance by a risk retention group to any person who is not eligible for membership in such group; and

(B) the solicitation or sale of insurance by, or operation of, a risk retention group that is in hazardous financial condition or financially impaired.

(9) Prohibition on ownership by an insurance company. No risk retention group shall be allowed to do business in this State if an insurance company, other than an affiliated risk retention group, captive or other policyholder-owned insurance company, or a risk retention group all of whose members are insurance companies, is directly or indirectly a member or owner of such risk retention group.

(10) Prohibited coverage. The terms of any insurance policy issued by any risk retention group shall not provide, or be construed to provide, coverage prohibited generally by statute of this State or declared unlawful by the highest court of this State whose law applies to such policy. This subsection shall not be construed to require the preapproval of forms by the Commissioner.

(11) Delinquency proceedings. After an examination under subdivision 6053(6) of this title, a risk retention group not chartered in this State and doing business in this State shall comply with a lawful order issued in a voluntary dissolution proceeding or in a delinquency proceeding commenced by a state insurance commissioner if there has been a finding of financial impairment within the meaning of chapter 145 of this title.

(12) Penalties. A risk retention group subject to this section that violates any provision of this chapter will be subject to the fines and the penalties including revocation of its right to do business in this State, applicable to licensed insurers generally under this title.

(13) Operation prior to enactment of this chapter. In addition to complying with the requirements of this section, any risk retention group operating in this State prior to enactment of this chapter shall, within 30 days after December 31, 1992, comply with the provision of subdivision (1)(A) of this section.
8 V.S.A. § 8093 — VT Code / Title 8 / Chapter 154 / Section 8093
§ 8093. Denial of claims; written explanation
Status: in_force

(a) If a claim under a long-term care insurance contract is denied, the issuer shall, within 60 days of the date of a written request by the policyholder or certificate holder, or a representative thereof:

(1) provide a written explanation of the reasons for the denial; and

(2) make available all information directly related to the denial.

(b) After completion of all internal appeals, the policyholder or certificate holder may appeal the insurer's benefit trigger determination to an independent review organization designated by the Commissioner, upon payment of a filing fee of no more than $15.00. The filing fee may be waived or reduced upon a finding by the Commissioner that the financial circumstances of the insured warrant a waiver or reduction. All other costs of the independent review shall be paid by the insurer.
8 V.S.A. § 14110 — VT Code / Title 8 / Chapter 204 / Section 14110
§ 14110. Duties of executive officers, directors, and persons who control principal equity interests in financial institutions; officers may not receive fees
Status: in_force

(a) All executive officers, directors, and holders of principal equity interest of a Vermont or state financial institution subject to the laws of this State under this title shall comply with the standards for member banks established by Regulation O of the Federal Reserve Board, 12 C.F.R., Part 215, as amended.

(b) An officer, director, or employee of a Vermont or state financial institution shall not corruptly solicit or demand for the benefit of any person, or corruptly accept or agree to accept (i) any fee, present, benefit, or commission, directly or indirectly, from a borrower or applicant for a loan or from anyone negotiating securities at the financial institution of which he or she is an officer, director, or employee; (ii) any fee, present, benefit, or commission, directly or indirectly, for signing with another as accommodation maker, surety or endorser, or for a loan made or securities bought or sold by the financial institution, except for the benefit or profit he or she may derive in common with other depositors or stockbrokers, and the compensation allowed by the financial institution, for services and expenses.
8 V.S.A. § 7117 — VT Code / Title 8 / Chapter 147 / Section 7117
§ 7117. Examinations
Status: in_force

(a) The Commissioner has the authority to order any assuming company to produce any records, books, and papers in the possession of the assuming company or its affiliates necessary to ascertain the financial condition or legality of conduct of the assuming company.

(b) The Commissioner shall exercise his or her authority under subsection (a) of this section only if he or she has reason to believe the interests of the assuming company's policyholders may be adversely affected under the plan.

(c) The Commissioner may retain, at the assuming company's expense, attorneys, actuaries, accountants, and other experts not otherwise a part of the Commissioner's staff reasonably necessary to assist with an examination under this section. Any persons so retained shall be under the direction and control of the Commissioner and shall act in a purely advisory capacity.

(d) Each assuming company that produces records, books, and papers for examination under this section shall pay the expense of such examination.
8 V.S.A. § 3866 — VT Code / Title 8 / Chapter 105 / Section 3866
§ 3866. Returns, rate of tax, exemption
Status: in_force

Such companies shall also make annual returns to the Commissioner of Taxes in form satisfactory to him or her, and shall pay to the Commissioner of Taxes annually, in the month of February, a tax at the rate of two percent on gross premium deposits upon policies on risks located in this State in force on December 31 next preceding, after deducting the unabsorbed portion of such premium deposits computed at the average rate of return actually made on annual policies expiring during such year. However, none of the requirements of any resident agent law of this State shall apply to such a company so long as it insures only factories or mills, or property connected with such factories or mills.
8 V.S.A. § 4483 — VT Code / Title 8 / Chapter 121 / Section 4483
§ 4483. Reinsurance
Status: in_force

A domestic society may, by a reinsurance agreement, cede any individual risk or risks in whole or in part to an insurer (other than another fraternal benefit society) having the power to make such reinsurance and authorized to do business in this State or, if not so authorized, one which is approved by the Commissioner of Financial Regulation, but no such society may reinsure substantially all of its insurance in force without the written permission of the Commissioner of Financial Regulation. It may take credit for the reserves on such ceded risks to the extent reinsured, but no credit shall be allowed as an admitted asset or as a deduction from liability, to a ceding society for reinsurance made, ceded, renewed, or otherwise becoming effective after November 22, 1959, unless the reinsurance is payable by the assuming insurer on the basis of the liability of the ceding society under the contract or contracts reinsured without diminution because of the insolvency of the ceding society.
8 V.S.A. § 4514 — VT Code / Title 8 / Chapter 123 / Section 4514
§ 4514. Required contract provisions
Status: in_force

A contract entered into by a hospital service corporation shall be in writing, one copy of which shall be furnished to the subscriber, and shall contain the following provisions:

(1) A statement of the amount payable to the corporation by the subscriber and the times at which and manner in which such amount is to be paid.

(2) A statement of the nature of the services to be furnished and the period during which they will be furnished and, if there are any services to be excepted, a detailed statement of the exceptions printed as specified in section 4515 of this chapter.

(3) A statement of the terms and conditions, if any, upon which the contract may be canceled or otherwise terminated at the option of either party.

(4) A statement that the contract includes the endorsements thereon and attached papers, if any, and contains the entire contract for services.

(5) A statement that no representation by the subscriber in an application for a contract shall avoid the contract or be used in any legal proceeding under the contract, unless the application or an exact copy of the application is included in or attached to the contract, and that no agent or representative of the corporation, other than an officer designated in the contract, is authorized to change the contract or waive any of its provisions.

(6) A statement that if the subscriber defaults in making any payment under the contract, the subsequent acceptance of a payment by the corporation or by any of its duly authorized agents shall reinstate the contract, but, with respect to sickness and injury, only to cover such sickness as may be first manifested more than 10 days after the date of such acceptance.

(7) A statement of the period of grace that will be allowed the subscriber for making any payment due under the contract. The grace period shall be not less than 10 days.
8 V.S.A. § 4064 — VT Code / Title 8 / Chapter 107 / Section 4064
§ 4064. Mental health services review
Status: in_force

(a) The purposes of this section are to:

(1) promote the delivery of quality mental health services in a cost-effective manner;

(2) foster the practice of mental health services review as a professional collaborative process, the primary objective of which is to enhance the effectiveness of clinical treatment;

(3) protect clients and patients, employers, and mental health providers by ensuring that review agents are qualified to perform service review activities and to make informed decisions on the appropriateness of mental health care; and

(4) ensure the confidentiality of clients' and patients' mental health records in the performance of service review activities in accordance with applicable State and federal laws.

(b) Definitions. As used in this section:

(1) “License” means a review agent's license granted by the Commissioner.

(2) “Mental health provider” means any individual, corporation, facility, or institution certified or licensed by this State to provide mental health services, including a physician, nurse with recognized psychiatric specialties, hospital or other health care facility, psychologist, clinical social worker, mental health counselor, alcohol or drug abuse counselor, or an employee or agent of such mental health provider acting in the course and scope of employment or an agency related to mental health services.

(3) “Mental health services” mean acts of diagnosis, treatment, evaluation, or advice or any other acts permissible under the health care laws of Vermont, whether performed in an outpatient or institutional setting, and include treatment for substance use disorder.

(4) “Review agent” means a person or entity performing service review activities within one year following the date of submission of a fully compliant application for licensure who is affiliated with, under contract with, or acting on behalf of a business entity in this State and who provides or administers mental health benefits to members of health insurance plans subject to the Department's jurisdiction, including a health insurer.

(5) “Service review” means any system for reviewing the appropriate and efficient allocation of mental health services given or proposed to be given to a client or patient, or to a group of clients or patients, for the purpose of recommending or determining whether the services should be covered and includes activities of utilization review and managed care, but does not include professional peer review that does not affect reimbursement for or provision of services.

(c) Any person who approves or denies payment, or who recommends approval or denial of payment, for mental health services, or whose review results in approval or denial of payment for mental health services on a case-by-case basis, shall not review these services in this State unless the Commissioner has granted the person a review agent's license. The Commissioner shall adopt rules to implement the provisions of this section, including the procedures and standards for licensure. The rules shall differentiate between health maintenance organizations licensed to do business within this State and other forms of utilization review. The rules shall establish:

(1) A requirement that within 10 business days after receiving a request for them, the review agent shall make available at no cost to the clients, patients, and providers affected by its service review activities the specific review criteria and standards, credentials of the reviewing professionals, and procedures and methods to be used in evaluating proposed or delivered mental health services.

(2) A time period within which any determination regarding the provision or reimbursement of mental health services shall be made.

(3) A requirement that any determination regarding mental health services rendered or to be rendered to a client or patient that may result in a denial of third-party reimbursement or a denial of precertification for that service shall include the evaluation, findings, and concurrence of a mental health professional whose training and expertise is at least comparable to that of the treating mental health provider.

(4) The type, qualifications, and number of personnel required to perform service review activities.

(5) A requirement that a determination by a review agent that care rendered or to be rendered is inappropriate shall not be made until the review agent has communicated with the patient's attending mental health provider concerning that care. The review shall be prospective or concurrent with the treatment.

(6) A requirement that any determination that care rendered or to be rendered is inappropriate shall include the written evaluation and findings of the review agent.

(7) A procedure for clients, patients, mental health providers, and hospitals to seek prompt reconsideration before an independent review organization pursuant to section 4063 of this title of an adverse decision by a review agent. The external reviewer engaged by the independent review organization shall have training and expertise at least comparable to that of the treating health care provider.

(8) Policies and procedures to ensure that all applicable State and federal laws to protect the confidentiality of individual mental health records are followed.

(9) Policies and procedures that ensure appropriate notification and concurrence of providers and their clients or patients before client or patient interviews are conducted by the review agent.

(10)(A) Prohibition of an agreement between the review agent and a business entity or third-party payor in which payment to the review agent includes an incentive or contingent fee arrangement based on the reduction of mental health services, reduction of length of stay, reduction of treatment, or treatment setting selected.

(B) Nothing in this subdivision (10) shall prohibit capitation arrangements for reimbursement for mental health services.

(C) A clinical decision made by the attending mental health provider regarding continued treatment shall not be construed as a denial of services subject to the provisions of this section.

(d) Reviewing agents shall be subject to the provisions of chapter 129 of this title governing unfair insurance trade practices.

(e) The Commissioner shall have the authority to examine, take administrative action against, and penalize review agents as provided in chapters 3, 101, and 129 of this title. A person who violates any provision of this section or who submits any false information in an application required by this section may be fined not more than $5,000.00 for each violation.

(f) A review agent shall pay a license fee of $200.00 for the year of registration and a renewal fee of $200.00 for each year thereafter. In addition, a review agent shall pay any additional expenses incurred by the Commissioner to examine and investigate an application or an amendment to an application.

(g) The confidentiality of any health care information acquired by or provided to an independent review organization pursuant to section 4063 of this title shall be maintained in compliance with any applicable State or federal laws. Records of, and internal materials prepared for, specific reviews under this section shall be exempt from public inspection and copying under the Public Records Act. (Recodified and amended 2025, No. 11, § 2, eff. September 1, 2025.)
8 V.S.A. § 5025 — VT Code / Title 8 / Chapter 138 / Section 5025
§ 5025. Exceptions concerning placement of insurance with non-admitted insurers; records
Status: in_force

The provisions of this chapter controlling the placement of insurance with non-admitted insurers shall not apply to life insurance, health insurance, annuities, or reinsurance, nor to the following insurance when so placed by any licensed producer in this State:

(1) insurance on subjects whose home state is other than Vermont;

(2) insurance on the property or operations of aircraft or railroads engaged in transportation in interstate and foreign commerce; or

(3) insurance of vessels, crafts or hulls, cargoes, marine builder's risks, marine protection and indemnity, or other risks, including strikes and war risks commonly insured under ocean or wet marine forms of policy.
8 V.S.A. § 7155 — VT Code / Title 8 / Chapter 149 / Section 7155
§ 7155. Policy conditions
Status: in_force

(a) A pet insurer may issue policies that exclude coverage on the basis of one or more preexisting conditions with appropriate disclosure to the consumer. The pet insurer has the burden of proving that the preexisting condition exclusion applies to the condition for which a claim is being made.

(b) A pet insurer may issue policies that impose waiting periods that do not exceed 30 days from the effective date of the policy for illnesses or orthopedic conditions not resulting from an accident. Waiting periods for accidents are prohibited. An insurer must issue coverage to be effective not later than 12:01 a.m. on the second calendar day after premium is paid.

(1) A pet insurer using a waiting period permitted under this subsection shall include a provision in its contract that allows the waiting period to be waived upon completion of a medical examination. Pet insurers may require the examination to be conducted by a licensed veterinarian after the purchase of the policy.

(A) A medical examination pursuant to this subdivision (1) shall be paid for by the policyholder, unless the policy specifies that the pet insurer will pay for the examination.

(B) A pet insurer can specify elements to be included as part of the examination and require documentation thereof, provided the specifications do not unreasonably restrict a consumer's ability to waive the waiting period under this subsection.

(2) Waiting periods, and the requirements applicable to them, shall be clearly and prominently disclosed to consumers prior to the policy purchase.

(3) If a policy does not include a waiting period, an insurer may set a policy effective date that is up to 15 calendar days after purchase, provided such policy effective date is clearly disclosed and no premium is earned before the policy becomes effective.

(c) A pet insurer must not require a veterinary examination of the covered pet for the insured to have their policy renewed.

(d) If a pet insurer includes any prescriptive, wellness, or noninsurance benefits in the policy form, then it is made part of the policy contract and shall follow all applicable insurance laws and rules.

(e) An insured's eligibility to purchase a pet insurance policy shall not be based on participation, or lack of participation, in a separate wellness program.

(f) A condition for which coverage is afforded on a policy shall not be considered a preexisting condition on any renewal of the policy.

(g) A policyholder shall be allowed to modify coverage amounts without having the policy cancelled and renewed.

(h) Coverage for new or existing claims shall not be suspended due to nonpayment of premium. The policy is considered effective until renewal, cancellation, or nonrenewal.

(i) Unpaid premiums shall not be deducted from claim payments for a covered loss.
8 V.S.A. § 3711 — VT Code / Title 8 / Chapter 103 / Section 3711
§ 3711. Charitable life gifts
Status: in_force

(a) A life insurance contract may be entered into in which a person paying the consideration for such insurance has no insurable interest in the life of the individual insured, provided that a charitable, benevolent, educational, or religious institution or its agency or any other organization that qualifies under Section 501(c)(3) of the Internal Revenue Code is irrevocably designated as the owner and beneficiary of the contract.

(b) In making such a contract, both the owner and the insured shall make and sign the joint application. The person paying the premium shall irrevocably designate a charitable, benevolent, educational, or religious institution, or an agency of such an institution or any other organization that qualifies under Section 501(c)(3) of the Internal Revenue Code, as the irrevocable owner and beneficiary of such contract.

(c) If a prospective insured applies jointly for a life insurance policy that irrevocably names a 501(c)(3) organization or nonprofit as owner and beneficiary, then, at the time of such joint application, an insurable interest is created for the entity in the prospective insured's life. Before an application may be made for such a policy, the insurer shall provide the prospective insured with a written disclosure to remind the prospective insured to consider his or her current state of health and to consult with a tax advisor or estate planner.

(d) Nothing in this section shall prohibit any combination of the applicant, premium payer, owner, and beneficiary from being the same person.

(e) This section does not alter the insurable interest requirements of any other law.
8 V.S.A. § 3791 — VT Code / Title 8 / Chapter 103 / Section 3791
§ 3791. Title
Status: in_force

This subchapter shall be known as the Standard Valuation Law.
8 V.S.A. § 2711 — VT Code / Title 8 / Chapter 81 / Section 2711
§ 2711. Rules
Status: in_force

(a) The Commissioner may adopt such rules as are necessary to carry out the purposes of this chapter with respect to financial institutions, credit unions, and all persons and entities licensed or required to be licensed under this title.

(b) The Attorney General may adopt such rules as are necessary to carry out the purposes of this chapter with respect to all persons and entities other than financial institutions, credit unions, and all persons or entities licensed or required to be licensed under this title.
8 V.S.A. § 4257 — VT Code / Title 8 / Chapter 114 / Section 4257
§ 4257. Definitions
Status: in_force

As used in this chapter:

(1) “Portable electronics” means electronic devices that are portable in nature, their accessories, and services related to the use of such devices.

(2) “Portable electronics insurance” means insurance that may be offered on a month-to-month or other periodic basis as a group or master commercial inland marine policy that provides coverage for the repair or replacement of portable electronics against any one or more of the following causes of loss: loss, theft, inoperability due to mechanical failure, malfunction, damage, or other similar causes of loss. The term does not include a service contract governed by chapter 113, subchapter 4 of this title, a policy of insurance covering a seller's or a manufacturer's obligations under a warranty, or a homeowner's, renter's, private passenger automobile, commercial multi-peril, or similar policy.

(3) “Portable electronics vendor” means a person in the business of selling or leasing portable electronics directly or indirectly.
8 V.S.A. § 3844 — VT Code / Title 8 / Chapter 103 / Section 3844
§ 3844. Prohibited practices
Status: in_force

(a) It is a violation of this subchapter for any person to:

(1) Commit any fraudulent life settlement acts.

(2) Enter into any practice, agreement, arrangement, or transaction that results in or is intended to result in the issuance of stranger-originated life insurance or STOLI.

(3) Enter, within a five-year period commencing with the date of issuance of the insurance policy or certificate, into a life settlement contract unless the policy owner certifies to the life settlement provider that one or more of the following conditions have commenced or occurred after the date of issuance of the insurance policy or certificate and within the five-year period:

(A) The policy was issued upon the policy owner's exercise of conversion rights arising out of a group or individual policy, provided the total of the time covered under the conversion policy plus the time covered under the prior policy is at least 60 months. The time covered under a group policy shall be calculated without regard to any change in insurance carriers, provided the coverage has been continuous and under the same group sponsorship.

(B) The policy owner submits independent evidence to the life settlement provider that one or more of the following conditions have commenced or occurred after the date of issuance of the insurance policy or certificate and within the five-year period:

(i) the policy owner or insured is terminally or chronically ill;

(ii) the policy owner's spouse dies;

(iii) the policy owner divorces his or her spouse;

(iv) the policy owner retires from full-time employment;

(v) the policy owner becomes physically or mentally disabled and a physician determines that the disability prevents the policy owner from maintaining full-time employment;

(vi) a final order, judgment, or decree is entered by a court of competent jurisdiction, on the application of a creditor of the policy owner, adjudicating the policy owner bankrupt or insolvent or approving a petition seeking reorganization of the policy owner or appointing a receiver, trustee, or liquidator to all or a substantial part of the policy owner's assets; or

(vii) the policy owner has suffered a significant economic reversal, as demonstrated by a 50 percent decline in the policy owner's annual adjusted gross income, or by a 50 percent decline in the policy owner's net worth, or as demonstrated by other facts and circumstances approved by the Commissioner.

(C) The policy owner enters into a life settlement contract more than two years after the date of issuance of a policy and, with respect to the policy, at all times prior to the date that is two years after policy issuance, the following conditions are met:

(i) policy premiums have been funded exclusively with unencumbered assets, including an interest in the life insurance policy being financed only to the extent of its net cash surrender value, provided by or with full recourse liability incurred by the insured or a person described in subdivision 3835(9)(C)(v) of this title;

(ii) there is no agreement or understanding with any other person to guarantee any such liability or to purchase or stand ready to purchase the policy, including through an assumption or forgiveness of the loan; and

(iii) a life settlement provider or a life settlement broker has not conducted a life expectancy evaluation of the insured in connection with a proposed settlement of the policy, and the insured has not undergone a life expectancy evaluation for settlement in connection with the issuance of the policy.

(b) Copies of the independent evidence described in subdivision (a)(3)(B) of this section and documents required by section 3842 of this title shall be submitted to the insurer when the life settlement provider or other party entering into a life settlement contract with a policy owner submits a request to the insurer for verification of coverage. The copies shall be accompanied by a letter of attestation from the life settlement provider that the copies are true and correct copies of the documents received by the life settlement provider.

(c) No insurer may, as a condition of responding to a request for verification of coverage or effecting the transfer of a policy pursuant to a life settlement contract, require that the policy owner, insured, life settlement provider, or life settlement broker sign any forms or disclosures of consent or waiver that have not been expressly approved by the Commissioner for use in connection with life settlement contracts in this State.

(d) Upon receipt of a properly completed request for change of ownership or beneficiary of a policy, the insurer shall respond in writing within 30 calendar days with written acknowledgment confirming that the change has been effected or specifying the reasons why the requested change cannot be processed. The insurer shall not unreasonably delay effecting change of ownership or beneficiary and shall not otherwise seek to interfere with any life settlement contract lawfully entered into in this state.

(e) It shall be a violation of this section to enter into a life settlement contract in reliance on the conditions established in subdivision (a)(3)(B) of this section if such condition commenced or occurred prior to the issuance of the insurance policy or certificate.

(f) The Commissioner shall adopt rules regulating the marketing and solicitation of life settlement products.
8 V.S.A. § 2245 — VT Code / Title 8 / Chapter 73 / Section 2245
§ 2245. Pension loans
Status: in_force

Any person who engages in the business of offering consideration in exchange for a secured interest in all or part of pension proceeds in the possession of a participant, beneficiary, or member of a pension plan, program, or system shall be deemed to be engaged in the business of making loans pursuant to subdivision 2201(a)(1) of this chapter and shall be subject to 9 V.S.A. chapters 4 and 63.
8 V.S.A. § 3572 — VT Code / Title 8 / Chapter 101 / Section 3572
§ 3572. Revocation of certificate of authority
Status: in_force

The Commissioner may suspend, revoke, or refuse to renew the certificate of authority of any insurer failing to file its annual statement when due or within any extension of time that the Commissioner, for good cause, may have granted.
8 V.S.A. § 6006 — VT Code / Title 8 / Chapter 141 / Section 6006
§ 6006. Formation of captive insurance companies in this State
Status: repealed

(a) Subject to the approval of the Commissioner, a captive insurance company may be formed as any type of entity permissible under Vermont law.

(b)-(c) [Repealed.]

(d) A captive insurance company incorporated or organized in this State shall have one or more incorporators or one or more organizers, at least one of which shall be a resident of this State.

(e)(1) Before any required formation documents are transmitted to the Secretary of State, the incorporators or organizers shall petition the Commissioner to issue a certificate setting forth the Commissioner's finding that the establishment and maintenance of the proposed entity will promote the general good of the State. In arriving at such a finding, the Commissioner shall consider:

(A) the character, reputation, financial standing, and purposes of the incorporators or organizers;

(B) the character, reputation, financial responsibility, insurance experience, and business qualifications of the officers and directors or members of the governing board; and

(C) such other aspects the Commissioner deems advisable.

(2) The formation documents, the certificate, and the organization fee shall be transmitted to the Secretary of State, who shall record both the formation documents and the certificate.

(f) The capital stock of a captive insurance company incorporated as a stock insurer may be authorized with no par value.

(g) In the case of a captive insurance company:

(1) formed as a corporation, at least one of the members of the board of directors shall be a resident of this State;

(2) formed as a reciprocal insurer, at least one of the members of the subscribers' advisory committee shall be a resident of this State;

(3) formed as a limited liability company, at least one of the managers shall be a resident of this State.

(h) Other than captive insurance companies formed as limited liability companies under 11 V.S.A. chapter 25 or as nonprofit corporations under Title 11B, captive insurance companies formed as corporations under the provisions of this chapter shall have the privileges and be subject to the provisions of Title 11A as well as the applicable provisions contained in this chapter. In the event of conflict between the provisions of said general corporation law and the provisions of this chapter, the latter shall control.

(i) Captive insurance companies formed under the provisions of this chapter:

(1) As limited liability companies shall have the privileges and be subject to the provisions of 11 V.S.A. chapter 25 as well as the applicable provisions contained in this chapter. In the event of a conflict between the provisions of 11 V.S.A. chapter 25 and the provisions of this chapter, the latter shall control.

(2) As nonprofit corporations shall have the privileges and be subject to the provisions of Title 11B as well as the applicable provisions contained in this chapter. In the event of conflict between the provisions of Title 11B and the provisions of this chapter, the latter shall control.

(3) As mutual insurers shall have the privileges and be subject to the provisions of sections 3303 and 3311 of this title as well as the applicable provisions contained in this chapter. In the event of a conflict between the provisions of sections 3303 and 3311 of this title and the provisions of this chapter, the latter shall control.

(j) The provisions of chapter 101, subchapters 3 and 3A of this title, pertaining to mergers, consolidations, conversions, mutualizations, redomestications, and mutual holding companies, shall apply in determining the procedures to be followed by captive insurance companies in carrying out any of the transactions described therein, except that:

(1) If the shareholders, members, or policyholders of the captive insurance company have unanimously approved of the merger, the procedures set forth in section 6006a of this title shall apply.

(2) The Commissioner may, upon request of an insurer party to a merger authorized under this subsection, waive the requirement of subdivision 3424(6) of this title.

(3) The Commissioner may waive the requirements for public notice and hearing or, in accordance with rules that the Commissioner may adopt addressing categories of transactions, modify the requirements for public notice and hearing. If a notice of public hearing is required, but no one requests a hearing ten days before the day set for the hearing, then the Commissioner may cancel the hearing.

(4) The provisions of subsections 3423(f) and (h) of this title shall not apply, and the Commissioner may waive or modify the requirement of subdivision 3423(b)(4) of this title, with respect to market value of a converted company as necessary or desirable to reflect applicable restrictions on ownership of companies formed under this chapter.

(5) An alien insurer may be a party to a merger authorized under this subsection, provided that the requirements for a merger between a captive insurance company and a foreign insurer under section 3431 of this title shall apply to a merger between a captive insurance company and an alien insurer under this subsection. Such alien insurer shall be treated as a foreign insurer under section 3431 and such other jurisdictions shall be the equivalent of a state for purposes of section 3431.

(6) The Commissioner may issue a certificate of general good to permit the formation of a captive insurance company that is established for the purpose of consolidating or merging with or assuming existing insurance or reinsurance business from an existing licensed captive insurance company. The Commissioner may, upon request of such newly formed captive insurance company, waive or modify the requirements of subdivisions 6002(c)(1)(B) and (2) of this title.

(7) The Commissioner may waive or modify application of the provisions of chapter 132 and chapter 101, subchapters 3 and 3A of this title and the provisions of Titles 11, 11A, and 11B in order to permit mergers of a non-insurer subsidiary of a captive insurance company with and into the captive insurance company or another of its subsidiaries without approval of the shareholders, members, or subscribers of such captive insurance company and without making available to the shareholders, members, or subscribers dissenters' rights otherwise made available in such a merger; provided, however, that the board of directors, managers, or subscribers' advisory committee of each of the merging entities shall approve such merger. The Commissioner may condition any such waiver or modification upon a good faith effort by the captive insurance company to provide notice of the merger to its shareholders, members, or subscribers.

(k) Captive insurance companies formed as reciprocal insurers under the provisions of this chapter shall have the privileges and be subject to the provisions of chapter 132 of this title in addition to the applicable provisions of this chapter. In the event of a conflict between the provisions of chapter 132 and the provisions of this chapter, the latter shall control. However, in approving assessments levied upon subscribers of a captive insurance company formed as a reciprocal insurer, the Commissioner may exempt the company from any provision of sections 4850 (assessments), 4851 (time limit for assessments), and 4852 (aggregate of liability) of chapter 132. To the extent a reciprocal insurer is made subject to other provisions of this title pursuant to chapter 132, such provisions shall not be applicable to a reciprocal insurer formed under this chapter unless such provisions are expressly made applicable to captive insurance companies under this chapter. The Commissioner may exempt a company's attorney-in-fact from the provisions of section 4840 (attorney's bond) of chapter 132 if:

(1) the reciprocal insurer is formed as an association captive;

(2) each member of the reciprocal insurer qualifies as “industrial insured” pursuant to subdivision 6001(9) of this subchapter; or

(3) the reciprocal insurer is an incorporated protected cell of a sponsored captive insurance company.

(l) The articles of incorporation or bylaws of a captive insurance company formed as a corporation may authorize a quorum of its board of directors to consist of no fewer than one-third of the fixed or prescribed number of directors determined under 11A V.S.A. § 8.24(a) or under 11B V.S.A. § 8.24.

(m) The subscribers' agreement or other organizing document of a captive insurance company formed as a reciprocal insurer may authorize a quorum of its subscribers' advisory committee to consist of no fewer than one-third of the number of its members.

(n) With the Commissioner's approval, a captive insurance company organized as a stock insurer may convert to a nonprofit corporation with one or more members by filing with the Secretary of State an irrevocable election for such conversion, provided that:

(1) the irrevocable election shall certify that, at the time of the company's original organization and at all times thereafter, the company conducted its business in a manner not inconsistent with a nonprofit purpose; and

(2) at the time of the filing of its irrevocable election, the company shall file with both the Commissioner and the Secretary of State amended and restated articles of incorporation consistent with the provisions of this chapter and with Title 11B, duly authorized by the corporation.

(o) The following provisions of Title 11B shall not apply to captive insurance companies that are nonprofit corporations:

(1) subsection 2.02(c) (relating to the signing of articles of incorporation by directors); and

(2) section 11.02, in the case of any merger in which a captive insurance company merges with and into a captive insurance company organized as a nonprofit corporation under Title 11B where the latter is the surviving corporation.

(p) In the case of a captive insurance company formed as a limited liability company, a reciprocal insurance company, or mutual insurance company, any proxy executed by the members, subscribers, and policyholders of each shall be valid if executed and transmitted in compliance with 11A V.S.A. § 7.22.

(q) With the Commissioner's prior written approval, a captive insurance company may establish one or more separate accounts and may allocate to them amounts to provide for the insurance of risks of certain of its parents, affiliates, or members, as the case may be, subject to the following:

(1) The income, gains, and losses, realized or unrealized, from assets allocated to a separate account shall be credited to or charged against the account, without regard to other income, gains, or losses of the captive insurance company.

(2) Amounts allocated to a separate account in the exercise of the power granted by this subsection are owned by the captive insurer, and the captive insurer may not be nor hold itself out to be a trustee with respect to such amounts.

(3) Unless otherwise approved by the Commissioner, assets allocated to a separate account shall be valued in accordance with the rules otherwise applicable to the captive insurer's assets.

(4) If and to the extent so provided under the applicable contracts, that portion of the assets of any such separate account equal to the reserves and other contract liabilities with respect to such account shall not be chargeable with liabilities arising out of any other business the captive insurer may conduct.

(5) No sale, exchange, or other transfer of assets may be made by such captive insurer between any of its separate accounts or between any other investment account and one or more of its separate accounts unless, in the case of a transfer into a separate account, such transfer is made solely to establish the account or to support the operation of the contracts with respect to the separate account to which the transfer is made and unless such transfer, whether into or from a separate account is made by a transfer of cash or by a transfer of securities having a readily determinable market value, provided that such transfer of securities is approved by the Commissioner. The Commissioner may approve other transfers among such accounts if, in his or her opinion, such transfers would be equitable.

(6) To the extent such captive insurer deems it necessary to comply with any applicable federal or State laws, such captive insurer, with respect to any separate account, including any separate account that is a management investment company or a unit investment trust, may provide for persons having an interest therein appropriate voting and other rights and special procedures for the conduct of the business of such account, including special rights and procedures relating to investment policy, investment advisory services, selection of independent public accountants, and the selection of a committee, the members of which need not be otherwise affiliated with such company, to manage the business of such account.
8 V.S.A. § 4512 — VT Code / Title 8 / Chapter 123 / Section 4512
§ 4512. Powers
Status: in_force

(a) Such hospital service corporation shall be a nonprofit sharing corporation without capital stock. It shall be maintained and operated solely for the benefit of the subscribers thereof and shall not be authorized to pay money in lieu of hospital service. A person, partnership, association, or corporation shall not contract to furnish hospital service unless authorized so to do pursuant to the provisions of this chapter. Corporations formed under the provisions of this chapter shall have the privileges and be subject to the provisions of Title 11B as well as the applicable provisions of this chapter. In the event of a conflict between the provisions of Title 11B and the provisions of this chapter, the latter shall control.

(b) Subject to the approval of the Commissioner or the Green Mountain Care Board established in 18 V.S.A. chapter 220, as appropriate, a hospital service corporation may establish, maintain, and operate a medical service plan as defined in section 4583 of this title. The Commissioner or the Board may refuse approval if the Commissioner or the Board finds that the rates submitted are excessive, inadequate, or unfairly discriminatory, fail to protect the hospital service corporation's solvency, or fail to meet the standards of affordability, promotion of quality care, and promotion of access pursuant to section 4026 of this title. The contracts of a hospital service corporation that operates a medical service plan under this subsection shall be governed by chapter 125 of this title to the extent that they provide for medical service benefits, and by this chapter to the extent that the contracts provide for hospital service benefits.

(c) Subject to the approval of the Commissioner, a hospital or medical service corporation may establish, maintain, and operate, or participate in the establishment, maintenance, and operation of, health care services contracts or arrangements, including health maintenance organizations authorized pursuant to chapter 139 of this title, all of which are intended to ensure that subscriber benefits are provided at minimum cost under efficient and economical management. A health maintenance organization established, maintained, or operated under the authority of this subsection shall be organized so that its business and affairs will be managed by a governing board or committee of which a majority are members who are not providers, as those terms are defined in section 5101 of this title. Notwithstanding the foregoing, subject to the approval of the Commissioner, a hospital or medical service corporation may establish, maintain, and operate or participate in the establishment, maintenance, and operation of administrative claims processing services and related services.
8 V.S.A. § 10504 — VT Code / Title 8 / Chapter 200 / Section 10504
§ 10504. Basic banking rules
Status: in_force

The Commissioner may adopt rules to require financial institutions with their principal place of business in this State to offer basic checking and savings accounts if the Commissioner finds a material deterioration in the availability and cost of basic checking and savings account services in the results of any two consecutive surveys. The rule adopted by the Commissioner under this section shall ensure that any required basic banking will not impair the safety and soundness of any affected financial institution and that any such rules shall not adversely affect other consumers of banking services.
8 V.S.A. § 2703 — VT Code / Title 8 / Chapter 81 / Section 2703
§ 2703. Prohibited fees
Status: in_force

(a) Dormancy fees, latency fees, issuance fees, redemption fees, or any other administrative fees or service charges in connection with a gift certificate are prohibited.

(b) Notwithstanding subsection (a) of this section, a money transmitter licensed under chapter 79 of this title, financial institution, or credit union may charge a one-time fee upon the issuance of a prepaid access card that is reasonably related to the cost to the issuer of issuing the card, provided that in no event shall the fee exceed $10.00.
8 V.S.A. § 4467 — VT Code / Title 8 / Chapter 121 / Section 4467
§ 4467. Location of office; place of meeting
Status: in_force

The principal office of any domestic society shall be located in this State. The meetings of its supreme legislative or governing body may be held in any state, district, province, or territory wherein the society has at least five subordinate branches and all business transacted at the meetings shall be as valid in all respects as if the meetings were held in this State.
8 V.S.A. § 4481 — VT Code / Title 8 / Chapter 121 / Section 4481
§ 4481. Accident and health insurance and total and permanent disability insurance certificates; filing and approval
Status: in_force

(a) No domestic, foreign, or alien society authorized to do business in this State shall issue or deliver in this State any certificate or other evidence of any contract of accident insurance or health insurance or of any total and permanent disability insurance contract unless and until the form thereof, together with the form of application and all riders of endorsements for use in connection therewith, has been filed with the Commissioner of Financial Regulation. Each filing of a policy, contract, endorsement, rider, or certificate shall be accompanied by payment to the Commissioner of a nonrefundable fee of $50.00 per filing submission.

(b) The Commissioner may adopt rules prescribing the required, optional, and prohibited provisions in the contracts, and the rules shall conform, as far as practicable, to the provisions of chapter 107 of this title. Where the Commissioner deems inapplicable, either in part or in their entity, the provisions of this chapter, the Commissioner may prescribe the portions or summary of the portions of the contract to be printed on the certificate issued to the member.
8 V.S.A. § 3847 — VT Code / Title 8 / Chapter 103 / Section 3847
§ 3847. Fraud prevention and control
Status: in_force

(a)(1) A person shall not commit a fraudulent life settlement act.

(2) A person shall not knowingly or with reason to know interfere with the enforcement of the provisions of this subchapter or investigations of suspected or actual violations of this subchapter.

(3) It shall be a violation of this subchapter for a person in the business of life settlements who with knowledge or who reasonably should know to permit any person convicted of a felony involving dishonesty or breach of trust to participate in the business of life settlements.

(b)(1) Life settlement contracts and applications for life settlements, regardless of the form of transmission, shall contain the following statement or a substantially similar statement:

“Any person who knowingly presents false information in an application for insurance or life settlement contract may be guilty of a crime and may be subject to fines and confinement in prison.”

(2) The lack of a statement as required in subdivision (1) of this subsection does not constitute a defense in any prosecution for a fraudulent life settlement act.

(c)(1) Any person engaged in the business of life settlements having knowledge or a reasonable suspicion that a fraudulent life settlement act is being, will be, or has been committed shall immediately provide to the Commissioner such information as required and in a manner prescribed by the Commissioner by rule or order.

(2) Any other person having knowledge or a reasonable belief that a fraudulent life settlement act is being, will be, or has been committed may provide to the Commissioner such information required and in a manner prescribed by the Commissioner by order or rule.

(d)(1) No civil liability shall be imposed on and no cause of action shall arise from a person's furnishing information concerning suspected, anticipated, or completed fraudulent life settlement acts or suspected or completed fraudulent insurance acts if the information is provided to or received from:

(A) the Commissioner or the Commissioner's employees, agents, or representatives;

(B) federal, State, or local law enforcement or regulatory officials or their employees, agents, or representatives;

(C) a person involved in the prevention and detection of fraudulent viatical settlement acts or that person's agents, employees, or representatives;

(D) the National Association of Insurance Commissioners, the Financial Industry Regulatory Authority (FINRA), the North American Securities Administrators Association (NASAA), or their employees, agents, or representatives, or another regulatory body overseeing life insurance, life settlements, or securities or investment fraud; or

(E) the life insurer that issued the life insurance policy covering the life of the insured.

(2) Subdivision (1) of this subsection shall not apply to statements made with actual malice. In an action brought against a person for filing a report or furnishing other information concerning a fraudulent life settlement act, the party bringing the action shall plead specifically any allegation that subdivision (1) of this subsection does not apply because the person filing the report or furnishing the information did so with actual malice.

(3) A person furnishing information as identified in subdivision (1) of this subsection shall be entitled to an award of attorney's fees and costs if he or she is the prevailing party in a civil cause of action for libel, slander, or any other relevant tort arising out of activities in carrying out the provisions of this subchapter and if the party bringing the action was not substantially justified in doing so. For the purposes of this section, a proceeding is “substantially justified” if it had a reasonable basis in law or fact at the time that it was initiated. However, such an award does not apply to any person furnishing information concerning his or her own fraudulent life settlement acts.

(4) This section does not abrogate or modify common law or statutory privileges or immunities enjoyed by a person described in subdivision (1) of this subsection.

(5) Confidentiality.

(A) The documents and evidence provided pursuant to this subsection or obtained by the Commissioner in an investigation of suspected or actual fraudulent life settlement acts shall be privileged and confidential and shall not be a public record and shall not be subject to discovery or subpoena in any private civil action.

(B) Subdivision (A) of this subdivision does not prohibit release by the Commissioner of documents and evidence obtained in an investigation of suspected or actual fraudulent life settlement acts:

(i) in administrative or judicial proceedings to enforce laws administered by the Commissioner;

(ii) to federal, state, or local law enforcement or regulatory agencies, to an organization established for the purpose of detecting and preventing fraudulent viatical settlement acts, or to the National Association of Insurance Commissioners; or

(iii) at the discretion of the Commissioner, to a person in the business of life settlements that is aggrieved by a fraudulent life settlement act.

(C) Release of documents and evidence under subdivision (B) of this subdivision does not abrogate or modify the privilege granted in subdivision (A) of this subdivision.

(6) This subchapter shall not:

(A) preempt the authority or relieve the duty of other law enforcement or regulatory agencies to investigate, examine, and prosecute suspected violations of law;

(B) prevent or prohibit a person from disclosing voluntarily or otherwise information concerning life settlement fraud to a law enforcement or regulatory agency other than the Department of Financial Regulation; or

(C) limit the powers granted elsewhere by the laws of this State to the Commissioner or an insurance fraud unit to investigate and examine possible violations of law and to take appropriate action against wrongdoers.

(7)(A) Life settlement providers shall have in place antifraud initiatives reasonably calculated to detect, prosecute, and prevent fraudulent life settlement acts. The Commissioner may, at his or her discretion, order or a licensee may request and the Commissioner may grant such modifications of the required initiatives listed in subdivision (B) of this subdivision (7) as necessary to ensure an effective antifraud program. The modifications may be more or less restrictive than the required initiatives so long as the modifications may reasonably be expected to accomplish the purpose of this section.

(B) Antifraud initiatives shall include:

(i) The use of fraud investigators, who may be life settlement provider employees or independent contractors.

(ii) An antifraud plan, which shall be submitted to the Department at the request of the Commissioner. The antifraud plan shall include:

(I) a description of the procedures for detecting and investigating possible fraudulent life settlement acts and procedures for resolving material inconsistencies between medical records and insurance applications;

(II) a description of the procedures for reporting possible fraudulent life settlement acts to the Commissioner;

(III) a description of the plan for antifraud education and training of underwriters and other personnel; and

(IV) a description or chart outlining the organizational arrangement of the antifraud personnel who are responsible for the investigation and reporting of possible fraudulent life settlement acts and investigating unresolved material inconsistencies between medical records and insurance applications.

(e) Antifraud plans submitted to the Commissioner shall be privileged and confidential and shall not be a public record and shall not be subject to discovery or subpoena in a civil or criminal action.
8 V.S.A. § 4145 — VT Code / Title 8 / Chapter 111 / Section 4145
§ 4145. Fidelity companies may act as sole surety
Status: in_force

Where by law two or more sureties are required upon an obligation that a fidelity insurance company is authorized to insure, the fidelity insurance company may act as sole surety upon the obligation and may be accepted as such by the court or other person authorized to approve the sufficiency of the bond or undertaking. Any State law requiring sureties on bonds to be residents of this State shall not be construed to forbid the acceptance of a qualified foreign company as joint and sole surety upon any such bond.
8 V.S.A. § 4494 — VT Code / Title 8 / Chapter 121 / Section 4494
§ 4494. Reports and valuations
Status: in_force

Reports shall be filed and synopses of annual statements shall be published in accordance with the provisions of this section.

(1) Every society transacting business in this State shall annually, on or before March 1, unless for cause shown such time has been extended by the Commissioner of Financial Regulation, file with the Commissioner of Financial Regulation a true statement of its financial condition, transactions, and affairs for the preceding calendar year and pay a fee of $20.00 for filing it. The statement shall be in general form and context as approved by the National Association of Insurance Commissioners for fraternal benefit societies and as supplemented by additional information required by the Commissioner of Financial Regulation.

(2) A synopsis of its annual statement providing an explanation of the facts concerning the condition of the society thereby disclosed shall be printed and mailed to each benefit member of the society not later than June 1 of each year, or, in lieu thereof, the synopsis may be published in the society's official publication.

(3) As a part of the annual statement required in this section, each society shall, on or before March 1, file with the Commissioner a valuation of its certificates in force on December 31 last preceding; provided, however, the Commissioner may, in the Commissioner's discretion for cause shown, extend the time for filing the valuation for not more than two calendar months. Such report of valuation shall show, as reserve liabilities, the difference between the present mid-year value of the promised benefits provided in the certificates of the society in force and the present mid-year value of the future net premiums as the same are in practice actually collected, not including any value for the right to make extra assessments and not including any amount by which the present mid-year value of future net premiums exceeds the present mid-year value of promised benefits on individual certificates. At the option of any society, in lieu of the above, the valuation may show the net tabular value. The net tabular value as to certificates issued before one year after November 22, 1959 shall be determined in accordance with the provisions of law applicable before November 22, 1959, and as to certificates issued on or after one year from November 22, 1959 shall be not less than the reserves determined according to the Commissioners' Reserve Valuation method as defined in this section. If the premium charged is less than the tabular net premium according to the basis of valuation used, an additional reserve equal to the present value of the deficiency in the premiums shall be set up and maintained as a liability. The reserve liabilities shall be properly adjusted in the event that the mid-year or tabular values are not appropriate.

(4)(A) Reserves according to the Commissioners' Reserve Valuation method, for the life insurance and endowment benefits of certificates providing for a uniform amount of insurance and requiring the payment of uniform premiums shall be the excess, if any, of the present value, at the date of valuation, of the future guaranteed benefits provided for by the certificates, over the then present value of any future modified net premiums for the certificates. The modified net premiums for any such certificate shall be such percentage of the respective contract premiums for the benefits that the present value, at the date of issue of the certificate, of all such modified net premiums shall be equal to the sum of the then present value of the benefits provided for by the certificate and the excess of subdivision (i) of this subdivision (4)(A) over subdivision (ii) of this subdivision (4)(A) as follows:

(i) a net level premium equal to the present value, at the date of issue, of the benefits provided for after the first certificate year, divided by the present value at the date of issue, of an annuity of one percent per annum payable on the first and each subsequent anniversary of the certificate on which a premium falls due; provided, however, that the net level annual premium shall not exceed the net level annual premium on the 19-year premium whole life plan for insurance of the same amount at an age one year higher than the age at issue of the certificate; and

(ii) a net one-year term premium for the benefits provided for in the first certificate year.

(B) Reserves according to the Commissioners' Reserve Valuation method for (i) life insurance benefits for varying amounts of benefits or requiring the payment of varying premiums, (ii) annuity and pure endowment benefits, (iii) disability and accidental death benefits in all certificates and contracts, and (iv) all other benefits except life insurance and endowment benefits, shall be calculated by a method consistent with the principles of this subdivision.

(5) The present value of deferred payments due under incurred claims or matured certificates shall be deemed a liability of the society and shall be computed upon mortality and interest standards prescribed in subdivision (6) of this section.

(6)(A) Such valuation and underlying data shall be certified by a competent actuary or, at the expense of the society, verified by the actuary of the department of insurance of the state of domicile of the society.

(B) The minimum standards of valuation for certificates issued before one year from November 22, 1959 shall be those provided by the law applicable immediately before November 22, 1959 but not lower than the standards used in the calculating of rates for the certificates.

(C) The minimum standard of valuation for certificates issued after one year from November 22, 1959 shall be three and one-half percent interest and the following tables or such interest assumptions and tables as are authorized for use by domestic life insurers:

(i) for certificates of life insurance—American Men Ultimate Table of Mortality, with Bowerman's or Davis' Extension thereof or with the consent of the Commissioner of Financial Regulation, the Commissioner's 1941 Standard Ordinary Mortality Table or the Commissioner's 1941 Standard Industrial Table of Mortality;

(ii) for annuity certificates, including life annuities provided or available under optional modes of settlement in the certificates—the 1937 Standard Annuity Table;

(iii) for disability benefits issued in connection with life benefit certificates—Hunter's Disability Table, which, for active lives, shall be combined with a mortality table permitted for calculating the reserves on life insurance certificates, except that the table known as Class III Disability Table (1926) modified to conform to the contractual waiting period, shall be used in computing reserves for disability benefits under a contract that presumes that total disability shall be considered to be permanent after a specified period;

(iv) for accidental death benefits issued in connection with life benefit certificates—the Inter-Company Double Indemnity Mortality Table combined with a mortality table permitted for calculating the reserves for life insurance certificates; and

(v) for noncancellable accident and health benefits—the Class III Disability Table (1926) with conference modifications or, with the consent of the Commissioner of Financial Regulation, tables based upon the society's own experience.

(D) The Commissioner may, in the Commissioner's discretion, accept other standards for valuation if the Commissioner finds that the reserves produced by such standards will be not less in the aggregate than reserves computed in accordance with the minimum valuation standard prescribed in this section. The Commissioner may, in the Commissioner's discretion, vary the standards of mortality applicable to all certificates of insurance on substandard lives or other extra hazardous lives by any society authorized to do business in this State. Whenever the mortality experience under all certificates valued on the same mortality table is in excess of the expected mortality according to the table for a period of three consecutive years, the Commissioner may require additional reserves when deemed necessary in the Commissioner's judgment on account of the certificates.

(E) Any society, with the consent of the commissioner of insurance of the state of domicile of the society and under such conditions, if any, that such commissioner may impose, may establish and maintain reserves on its certificates in excess of the reserves required under such certificates, but the contractual rights of any insured member shall not be affected by such excess reserves.

(7) A society neglecting to file the annual statement in the form and within the time provided by this section shall forfeit $500.00 for each day during which the neglect continues, and, upon notice by the Commissioner of Financial Regulation to that effect, its authority to do business in this State shall cease while such default continues.

(8) Notwithstanding any provision of this section to the contrary, for societies whose assets exceed $250,000,000.00 as of January 1, 1991, the minimum standard of valuation for certificates issued after January 1, 1991 must be the interest assumptions and tables authorized for use by domestic life insurers. For societies whose assets are less than $250,000,000.00 on January 1, 1991, the interest assumptions and tables authorized for use by domestic life insurers must be utilized after the end of the year in which their assets first exceed $250,000,000.00.
8 V.S.A. § 10301 — VT Code / Title 8 / Chapter 200 / Section 10301
§ 10301. Community reinvestment reports
Status: in_force

Every financial institution subject to the Federal Community Reinvestment Act of 1977 (12 U.S.C. § 2901) as amended shall provide to the Commissioner a copy of any report issued with respect to such financial institution under that act. If the financial institution is not a Vermont financial institution, then the requirements of this section shall only apply to reports that relate to its business in this State. The Commissioner shall make such reports available for public inspection and copying.
8 V.S.A. § 32208 — VT Code / Title 8 / Chapter 222 / Section 32208
§ 32208. Real estate trust and escrow
Status: in_force

The provisions of section 14210 of this title governing pooled real estate trust and escrow accounts shall apply to credit unions in the same manner as they apply to financial institutions as defined in subdivision 11101(32) of this title.
8 V.S.A. § 4482 — VT Code / Title 8 / Chapter 121 / Section 4482
§ 4482. Waiver
Status: in_force

The constitution and laws of the society may provide that no subordinate body, nor any of its subordinate officers or members, shall have the power or authority to waive any of the provisions of the laws and constitution of the society. The provision shall be binding on the society and every member and beneficiary of a member.
8 V.S.A. § 7062 — VT Code / Title 8 / Chapter 145 / Section 7062
§ 7062. Duties of agents
Status: in_force

(a) Every person who receives notice in the form prescribed in section 7061 of this title that an insurer which he or she represents as an agent is the subject of a liquidation order shall, within 30 days of such notice, provide to the liquidator (in addition to the information he or she may be required to provide pursuant to section 7034 of this title) the information in the agent's records related to any policy issued by the insurer through the agent and, if the agent is a general agent, the information in the general agent's records related to any policy issued by the insurer through an agent under contract to him or her, including the name and address of such sub-agent. A policy shall be deemed issued through an agent if the agent has a property interest in the expiration of the policy, or if the agent has had in his or her possession a copy of the declarations of the policy at any time during the life of the policy, except where the ownership of the expiration of the policy has been transferred to another.

(b) An agent who fails to give notice or file a report of compliance as required in subsection (a) of this section may be subject to payment of a penalty of not more than $1,000.00 and may have his or her license suspended after a hearing held by the Commissioner.
8 V.S.A. § 4017 — VT Code / Title 8 / Chapter 107 / Section 4017
§ 4017. Exemption from attachment and trustee process
Status: in_force

So much of any benefits under all policies of health insurance as does not exceed $200.00 for each month during any period of disability covered by the policy shall not be liable to attachment, trustee process, or other process, or to be seized, taken, appropriated, or applied by any legal or equitable process or by operation of law, either before or after payment of such benefits, to pay any debt or liabilities of the person insured under the policy. However, this exemption shall not apply where an action is brought to recover for necessaries contracted for during the period of disability and the writ or bill of complaint contains a statement to that effect. When a policy provides for a lump sum payment because of a dismemberment or other loss insured, the payment shall be exempt from execution of the covered individual's creditors. (Recodified and amended 2025, No. 11, § 2, eff. September 1, 2025.)
8 V.S.A. § 31108 — VT Code / Title 8 / Chapter 221 / Section 31108
§ 31108. Amendment to articles of incorporation
Status: in_force

(a) The articles of incorporation, or comparable organization document as applicable to the credit union, may be amended as provided in the bylaws. Notwithstanding the provisions of the bylaws, however, written notice of the meeting and text of the proposed amendment shall be given to each director at least seven days prior to the meeting and to each member in accordance with section 31408 of this title.

(b) The credit union shall file with the Commissioner within 10 days after its adoption one copy of any proposed amendment. The credit union shall not amend its articles or comparable organizational document without the written approval of the Commissioner.

(c) Following the Commissioner's approval of the amendment, the credit union shall submit the amendment to the Secretary of State for filing as required by Title 11B.
8 V.S.A. § 2411 — VT Code / Title 8 / Chapter 77 / Section 2411
§ 2411. Unsafe condition; receivership
Status: in_force

If the Commissioner finds a deficiency in capital or other unsafe or unsound condition of an independent trust company has not been remedied within the time prescribed under an order of the Commissioner issued pursuant to this chapter, the Commissioner may apply to the Superior Court in Washington County, to be appointed receiver for the liquidation or rehabilitation of the company. The expense of the receivership shall be paid out of the assets of the independent trust company. The provisions of subchapters 2, 3, and 4 of chapter 209 of this title shall apply to an independent trust company formed or regulated under this chapter as if the independent trust company were a financial institution to the extent applicable.
8 V.S.A. § 4082 — VT Code / Title 8 / Chapter 107 / Section 4082
§ 4082. Early childhood development disorders
Status: in_force

(a) As used in this section:

(1) “Applied behavior analysis” means the design, implementation, and evaluation of environmental modifications using behavioral stimuli and consequences to produce socially significant improvement in human behavior. The term includes the use of direct observation, measurement, and functional analysis of the relationship between environment and behavior.

(2) “Autism spectrum disorders” means one or more pervasive developmental disorders as defined in the most recent edition of the Diagnostic and Statistical Manual of Mental Disorders (DSM), including autistic disorder, pervasive developmental disorder not otherwise specified, and Asperger's disorder.

(3) “Behavioral health treatment” means evidence-based counseling and treatment programs, including applied behavior analysis, that are:

(A) necessary to develop skills and abilities for the maximum reduction of physical or mental disability and for restoration of an individual to the individual's best functional level, or to ensure that an individual 21 years of age achieves proper growth and development; and

(B) provided or supervised by a nationally board-certified behavior analyst or by a licensed health care professional, provided the services performed are within the health care professional's scope of practice and certifications.

(4) “Diagnosis of early childhood developmental disorders” means medically necessary assessments, evaluations, or tests to determine whether an individual has an early childhood developmental delay, including an autism spectrum disorder.

(5) “Early childhood developmental disorder” means a childhood mental or physical impairment or combination of mental and physical impairments that results in functional limitations in major life activities, accompanied by a diagnosis defined by the DSM or the International Classification of Diseases (ICD), as periodically revised. The term includes autism spectrum disorders but does not include a learning disability.

(6) “Evidence-based” has the same meaning as in 18 V.S.A. § 4621.

(7) “Medically necessary” describes health care services that are appropriate in terms of type, amount, frequency, level, setting, and duration to the individual's diagnosis or condition; are informed by generally accepted medical or scientific evidence; and are consistent with generally accepted practice parameters. Such services shall be informed by the unique needs of each individual and each presenting situation and shall include a determination that a service is needed to achieve proper growth and development or to prevent the onset or worsening of a health condition.

(8) “Natural environment” means a home or child care setting.

(9) “Pharmacy care” means medications prescribed by a licensed health care professional and any health-related services deemed medically necessary to determine the need for or effectiveness of a medication.

(10) “Psychiatric care” means direct or consultative services provided by a licensed physician certified in psychiatry by the American Board of Medical Specialties.

(11) “Psychological care” means direct or consultative services provided by a psychologist licensed pursuant to 26 V.S.A. chapter 55.

(12) “Therapeutic care” means services provided by licensed or certified speech language pathologists, occupational therapists, or physical therapists.

(13) “Treatment for early developmental disorders” means evidence-based care and related equipment prescribed or ordered for an individual by a licensed health care professional or a licensed psychologist who determines the care to be medically necessary, including:

(A) behavioral health treatment;

(B) pharmacy care;

(C) psychiatric care;

(D) psychological care; and

(E) therapeutic care.

(b)(1) A health insurance plan shall provide coverage for the evidence-based diagnosis and treatment of early childhood developmental disorders, including applied behavior analysis supervised by a nationally board-certified behavior analyst, for children, beginning at birth and continuing until the child reaches 21 years of age.

(2) 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. Coverage provided pursuant to this section by Medicaid or any other public health care assistance program shall comply with all federal requirements imposed by the Centers for Medicare and Medicaid Services.

(3) A major medical insurance plan is not required to provide any benefits required by this section that exceed the essential health benefits specified under Section 1302(b) of the Patient Protection and Affordable Care Act, Public Law 111-148, as amended.

(c) The amount, frequency, and duration of treatment described in this section shall be based on medical necessity and may be subject to a prior authorization requirement under the health insurance plan.

(d) A health insurance plan shall not impose greater coinsurance, co-payment, deductible, or other cost-sharing requirements for coverage of the diagnosis or treatment of early childhood developmental disorders than apply to the diagnosis and treatment of any other physical or mental condition under the plan.

(e)(1) A health insurance plan shall provide coverage for applied behavior analysis when the services are provided or supervised by a licensed health care professional who is working within the scope of the health care professional's license or who is a nationally board-certified behavior analyst.

(2) A health insurance plan shall provide coverage for services under this section delivered in the natural environment when the services are furnished by a health care professional working within the scope of the health care professional's license or under the direct supervision of a licensed health care professional or, for applied behavior analysis, by or under the supervision of a nationally board-certified behavior analyst.

(f) Except for inpatient services, if an individual is receiving treatment for an early developmental delay, the health insurance plan may require treatment plan reviews based on the needs of the covered individual, consistent with reviews for other diagnostic areas and with rules established by the Department of Financial Regulation. A health insurance plan may review the treatment plan for children under eight years of age not more frequently than once every six months.

(g) Nothing in this section shall be construed to affect any obligation to provide services to an individual under an individualized family service plan, individualized education program, or individualized service plan. A health insurance plan shall not reimburse services provided under 16 V.S.A. § 2959a.

(h) It is the intent of the General Assembly that the Department of Financial Regulation facilitate and encourage health insurance plans to bundle co-payments accrued by beneficiaries receiving services under this section to the extent possible. (Recodified and amended 2025, No. 11, § 2, eff. September 1, 2025.)
8 V.S.A. § 12101 — VT Code / Title 8 / Chapter 202 / Section 12101
§ 12101. Application
Status: in_force

(a) Application. A corporation, limited liability company, limited partnership, limited liability partnership, or the organizers of the entity shall file with the Commissioner an application for permission to conduct business as an investor-owned financial institution. The application shall contain the following information:

(1) The name by which the financial institution is to be known.

(2) The purpose for which it is to be formed, including whether a certificate of general good is sought to conduct business as a universal financial institution or special purpose financial institution.

(3) The city or town within this State where the institution's principal office is to be located.

(4) The proposed amount of its initial capital.

(5) The names, addresses, and occupations of the organizers of the institution, together with a statement as to the character, reputation, and financial responsibility and competence of such persons.

(6) Documents that set forth the proposed institution's organizational structure and business plan, including:

(A) A copy of the organizational documents of the applicant.

(B) The names, addresses, and occupations of the organizers of the institution and the names, addresses, and occupations of the directors who will be voted on at the initial meeting, together with a statement as to the character, reputation, and financial responsibility of each. A list of the names, addresses, and official positions of the persons who are to be responsible for the conduct of the affairs of the applicant, including all members of the governing body, any committees, and the executive officers; a statement as to the character, reputation, financial responsibility, and competence and experience in banking and business of such persons; and such disclosure and conflict of interest statements as required.

(C) A financial plan that includes a three-year projection of the initial operating results anticipated and a description of the proposed method of marketing the plan, and a statement as to the sources of initial capital as well as any other sources of funding.

(7) The reasons that an institution of the type specified in subdivision (2) of this subsection is needed in the proposed location.

(8) Copies of any application filed with any other supervisory agency.

(9) Any additional information the Commissioner may require. The Commissioner may waive any requirements that do not apply.

(b) Publication of notice. After determining that the application required by subsection (a) of this section is complete, the Commissioner shall advise the organization or the organizers of the entity to publish or give any notice that will be required by the Commissioner under section 11702 of this title.
8 V.S.A. § 16 — VT Code / Title 8 / Chapter 1 / Section 16
§ 16. Judicial review
Status: in_force

Any person aggrieved and directly affected by an order of the Commissioner may appeal to the Supreme Court of Vermont, except as otherwise expressly provided in this title or in 9 V.S.A. chapters 131 and 150. The filing of an appeal for review or injunctive relief shall not stay enforcement of an order, but the Court may order a stay on such terms as it deems proper. The Court may affirm the order of the Commissioner, may direct him or her to take the action withheld, or may reverse or modify the order if it:

(1) was issued pursuant to unconstitutional statutory provisions;

(2) was in excess of statutory authority;

(3) was issued on unlawful procedure; or

(4) is not supported by substantial evidence in the record.
8 V.S.A. § 4462 — VT Code / Title 8 / Chapter 121 / Section 4462
§ 4462. Lodge system defined
Status: in_force

A society having a supreme legislative or governing body and subordinate lodges or branches by whatever name known, into which members are elected, initiated, or admitted in accordance with its constitutions, laws, ritual, and rules, which subordinate lodges or branches shall be required by the laws of the society to hold regular meetings, shall be deemed to be operating on the lodge system.
8 V.S.A. § 7099 — VT Code / Title 8 / Chapter 145 / Section 7099
§ 7099. Interstate priorities
Status: in_force

(a) In a liquidation proceeding in this State involving one or more reciprocal states, the order of distribution of the domiciliary state shall control as to all claims of residents of this and reciprocal states. All claims of residents of reciprocal states shall be given equal priority of payment from general assets regardless of where such assets are located.

(b) The owners of special deposit claims against an insurer for which a liquidator is appointed in this or any other state shall be given priority against the special deposits in accordance with the statutes governing the creation and maintenance of the deposits. If there is a deficiency in any deposit, so that the claims secured by it are not fully discharged from it, the claimants may share in the general assets, but the sharing shall be deferred until general creditors, and also claimants against other special deposits who have received smaller percentages from their respective special deposits, have been paid percentages of their claims equal to the percentage paid from the special deposit.

(c) The owner of a secured claim against an insurer for which a liquidator has been appointed in this or any other state may surrender his or her security and file a claim as a general creditor, or the claim may be discharged by resort to the security in accordance with section 7080 of this title, in which case the deficiency, if any, shall be treated as a claim against the general assets of the insurer on the same basis as claims of unsecured creditors.
8 V.S.A. § 6048d — VT Code / Title 8 / Chapter 141 / Section 6048d
§ 6048d. Licensing; authority
Status: in_force

(a) A special purpose financial insurance company may reinsure the risks of a ceding insurer only. A special purpose financial insurance company may purchase reinsurance to cede the risks assumed under a reinsurance contract, subject to the prior approval of the Commissioner.

(b) In conjunction with the issuance of a license to a special purpose financial insurance company, the Commissioner may issue an order that includes any provisions, terms, and conditions regarding the organization, licensing, and operation of the special purpose financial insurance company that are deemed appropriate by the Commissioner and that are not inconsistent with the provisions of this chapter. Except as provided in sections 6048l and 6048m of this subchapter, a license issued to a special purpose financial insurance company pursuant to this chapter and any order issued to a special purpose financial insurance company pursuant to this subsection shall not be revoked, suspended, amended, or modified other than as follows:

(1) the special purpose financial insurance company consents to such revocation, suspension, amendment, or modification; or

(2) the Commissioner makes a showing of clear and convincing evidence demonstrating that such revocation, suspension, amendment, or modification is necessary to avoid irreparable harm to the special purpose financial insurance company or to the ceding insurer.

(c) To qualify for a license, a special purpose financial insurance company shall be subject, in addition to the requirements of subsection 6002(c) of this chapter, to the following:

(1) The special purpose financial insurance company's plan of operation shall include:

(A) a complete description of all significant transactions, including reinsurance, reinsurance security arrangements, securitizations, related transactions or arrangements, and, to the extent not included in the transactions listed in this subdivision (A), a complete description of all parties other than the special purpose financial insurance company and the ceding insurer that will be involved in the issuance of special purpose financial insurance company securities and a description of any pledge, hypothecation, or grant of a security interest in any of the special purpose financial insurance company's assets and in any stock or limited liability company interest in the special purpose financial insurance company;

(B) the source and form of the special purpose financial insurance company's capital and surplus;

(C) the proposed investment policy of the special purpose financial insurance company;

(D) a description of the underwriting, reporting, and claims payment methods by which losses covered by the reinsurance contract are reported, accounted for, and settled;

(E) pro forma balance sheets and income statements illustrating one or more adverse case scenarios, as determined under criteria required by the Commissioner, for the performance of the special purpose financial insurance company under all reinsurance contracts; and

(F) the proposed rate and method for discounting reserves, if the special purpose financial insurance company is requesting authority to discount its reserves.

(2) The special purpose financial insurance company shall submit an affidavit of its president, a vice president, the treasurer, or the chief financial officer or, in the case of a special purpose financial insurance company formed as a limited liability company or as a reciprocal insurer, of an individual authorized by the governing board that includes the following statements, to the best of such person's knowledge and belief after reasonable inquiry:

(A) the proposed organization and operation of the special purpose financial insurance company comply with all applicable provisions of this chapter;

(B) the special purpose financial insurance company's investment policy reflects and takes into account the liquidity of assets and the reasonable preservation, administration, and management of such assets with respect to the risks associated with the reinsurance contract and the insurance securitization transaction; and

(C) the reinsurance contract and any arrangement for securing the special purpose financial insurance company's obligations under such reinsurance contract, including any agreements or other documentation to implement such arrangement, comply with the provisions of this subchapter.

(3) The application shall include copies of all agreements and documentation described in subdivision (1) of this subsection (c) unless otherwise approved by the Commissioner and any other statements or documents required by the Commissioner to evaluate the special purpose financial insurance company's application for licensure.

(4) The application shall include an opinion of qualified legal counsel, in a form acceptable to the Commissioner, that the offer and sale of any special purpose financial insurance company securities complies with all applicable registration requirements or applicable exemptions from or exceptions to such requirements of the federal securities laws and that the offer and sale of securities by the special purpose financial insurance company itself comply with all registration requirements or applicable exemptions from or exceptions to such requirements of the securities laws of this State. Such opinions shall not be required as part of the application if the special purpose financial insurance company includes a specific statement in its plan of operation that such opinions will be provided to the Commissioner in advance of the offer or sale of any special purpose financial insurance company securities.

(d) The Commissioner may grant a license, which shall be valid through the next April 1 following the date of initial issuance and may be renewed annually thereafter, authorizing the special purpose financial insurance company to transact reinsurance business as a special purpose financial insurance company in this State upon finding that:

(1) the proposed plan of operation provides for a reasonable and expected successful operation;

(2) the terms of the reinsurance contract and related transactions comply with this subchapter;

(3) the proposed plan of operation is not hazardous to any ceding insurer; and

(4) the insurance regulator of the state of domicile of each ceding insurer has notified the Commissioner in writing or otherwise has provided assurance satisfactory to the Commissioner that it has approved or has not disapproved the transaction, provided that the Commissioner shall not be precluded from issuing a license to a special purpose financial insurance company in the event that the insurance regulator of the state of domicile of a ceding insurer has not responded with respect to all or any part of the transaction.

(e) The special purpose financial insurance company shall provide the Commissioner with a copy of a complete set of executed documentation of an insurance securitization no later than 30 days after the closing on the transactions for such securitization.

(f) Subdivision 6002(c)(3) of this chapter shall apply to all information submitted pursuant to subsections (c) and (e) of this section and to any order issued to the special purpose financial insurance company pursuant to subsection (b) of this section.
8 V.S.A. § 4201 — VT Code / Title 8 / Chapter 113 / Section 4201
§ 4201. Filing and approval of policies; review
Status: in_force

A policy of insurance covering against loss or damage resulting from accident to, or injury suffered by an employee or other person, and for which the insured is liable, shall not be issued or delivered to a person, firm, or corporation resident of, or doing business in this State, until a copy of the form of the policy has been filed with the Commissioner; and it shall not be issued or delivered unless approved by the Commissioner. If the Commissioner determines that the form does not comply with the requirements of law, the Commissioner shall immediately give written notice to the insurer who filed the form, specifying the reasons for the Commissioner's determination, and it shall then be unlawful for the insurer to issue a policy in such form. The Commissioner's determination is subject to review pursuant to Rule 75 of the Vermont Rules of Civil Procedure.
8 V.S.A. § 4033 — VT Code / Title 8 / Chapter 107 / Section 4033
§ 4033. Discretionary clauses prohibited
Status: in_force

(a) The purpose of this section is to ensure that health insurance benefits, disability income protection coverage, and life insurance benefits are contractually guaranteed and to avoid the conflict of interest that may occur when the carrier responsible for providing benefits has discretionary authority to decide what benefits are due. Nothing in this section shall be construed to impose any requirement or duty on any person other than a health insurer or a health insurer offering disability income protection coverage or life insurance.

(b) As used in this section:

(1) “Disability income protection coverage” means a policy, contract, certificate, or agreement that provides for weekly, monthly, or other periodic payments for a specified period during the continuance of disability resulting from illness, injury, or a combination of illness and injury.

(2) “Health insurer” has the same meaning as in section 4011 of this chapter and, as used in this section, also includes entities offering policies for specific disease, accident, injury, hospital indemnity, dental care, disability income, long-term care, and other limited benefit coverage.

(3) “Life insurance” means a policy, contract, certificate, or agreement that provides life insurance as defined in subdivision 3301(a)(1) of this title.

(c) No policy, contract, certificate, or agreement offered or issued in this State by a health insurer to provide, deliver, arrange for, pay for, or reimburse any of the costs of health care services may contain a provision purporting to reserve discretion to the health insurer to interpret the terms of the contract or to provide standards of interpretation or review that are inconsistent with the laws of this State, and any such provision in a policy, contract, certificate, or agreement shall be null and void.

(d) No policy, contract, certificate, or agreement offered or issued in this State providing for disability income protection coverage may contain a provision purporting to reserve discretion to the insurer to interpret the terms of the contract or to provide standards of interpretation or review that are inconsistent with the laws of this State, and any such provision in a policy, contract, certificate, or agreement shall be null and void.

(e) No policy, contract, certificate, or agreement of life insurance offered or issued in this State shall contain a provision purporting to reserve discretion to the insurer to interpret the terms of the contract or to provide standards of interpretation or review that are inconsistent with the laws of this State, and any such provision in a policy, contract, certificate, or agreement shall be null and void. (Recodified and amended 2025, No. 11, § 2, eff. September 1, 2025.)
8 V.S.A. § 4079 — VT Code / Title 8 / Chapter 107 / Section 4079
§ 4079. Abortion and abortion-related services
Status: in_force

(a) As used in this section, “abortion” means any medical treatment intended to induce the termination of, or to terminate, a clinically diagnosable pregnancy except for the purpose of producing a live birth.

(b)(1) A health insurance plan shall provide coverage for abortion and abortion-related care.

(2) 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.

(c) The coverage required by this section shall not be subject to any co-payment, deductible, coinsurance, or other cost-sharing requirement or additional charge, except:

(1) to the extent such coverage would disqualify a high-deductible health plan from eligibility for a health savings account pursuant to 26 U.S.C. § 223; and

(2) for coverage provided by Medicaid. (Recodified and amended 2025, No. 11, § 2, eff. September 1, 2025.)
8 V.S.A. § 14205 — VT Code / Title 8 / Chapter 204 / Section 14205
§ 14205. Payable on death accounts
Status: in_force

(a) A “payable-on-death account” is created by a deposit in a financial institution in the name of an account holder or several joint account holders with a designation that the account is payable on death to one or more payees, known as “P.O.D. payees”. On the death of the sole account holder or the last surviving joint account holder, any remaining balance in a payable-on-death account, including interests or dividends, shall vest solely in the surviving P.O.D. payee or equally and severally in the then surviving P.O.D. payees. 90 days later, unless prevented as provided in subsection (c) of this section, the financial institution may pay the remaining balance to the new owner or owners or their legal representatives without further liability for the amount or amounts paid. If no P.O.D. payee is surviving 90 days after the last surviving account holder dies, the balance of the account shall be payable to the personal representative of that account holder.

(b) Recital of the words “payable-on-death,” the abbreviation “P.O.D.,” or words of like effect in the order creating the account, signed by the person or persons furnishing the funds for the deposit, shall be conclusive evidence, as between the legal representatives of account holders and the payable-on-death payees or their legal representatives, of the creation of an absolute payable-on-death account, except as provided in subsection (c) of this section. However, nothing in this section shall prevent proof of fraud, undue influence, or incapacity to defeat a payable-on-death interest.

(c) If other assets of the probate estate of the last surviving account holder are insufficient to pay debts and expenses, including statutory allowances and assignments to the surviving spouse, a payable-on-death account shall not transfer to P.O.D. payees sums needed for that purpose. A P.O.D. payee who receives payment from a payable-on-death account after the death of the last surviving account holder shall be liable to the account holder's personal representative for the amount of payment to the extent necessary to discharge debts and expenses remaining unpaid after application of the decedent's estate. No proceeding shall be commenced later than two years after the death of the decedent. Sums recovered by the personal representative shall be administered as part of the decedent's estate. This section shall not affect the right of a financial institution to make payment from a payable-on-death account to a P.O.D. payee 90 days after the death of the last surviving account holder or make a financial institution liable to the personal representative of the estate of a deceased account holder unless before making payment the financial institution is served with process in a proceeding brought by the personal representative or with an order from the Probate Division of the Superior Court prohibiting payment.
8 V.S.A. § 3665b — VT Code / Title 8 / Chapter 101 / Section 3665b
§ 3665b. Timely payment of life insurance claims and annuity death benefits; interest
Status: in_force

(a) This section applies to policies of life insurance and contracts of annuity. As used in this section, a “beneficiary” means any person making a claim against a policy of life insurance or for death benefits provided under a contract of annuity.

(b) A claim for payment of benefits under a policy of life insurance shall be paid within 30 days after the date that a properly executed proof of loss is received by the insurer. All payments of claims under policies of life insurance shall include interest accrued from the date of death of the insured to the date of payment. The interest rate shall be the rate paid on proceeds left on deposit or six percent, whichever is greater.

(c) A claim for payment of benefits under a contract of annuity shall be paid within 30 days after the date that a properly executed proof of loss is received by the insurer. Payments of claims for death benefit proceeds under contracts of annuity shall include interest at the rate paid for proceeds left on deposit or six percent, whichever is greater. Interest shall accrue and be payable as follows:

(1) For variable annuity contracts subject to the Securities and Exchange Commission's rules governing the liquidation of account values at the death of the beneficiary, from the eighth day following the date that a properly executed proof of loss is received by the insurer.

(2) For all other contracts of annuity, from the date of death of the measuring life, unless the contract specifies that the contract remains in force until the date that a properly executed proof of loss is received by the insurer. For purposes of this section, the individual whose death triggers the death benefit proceeds is the measuring life.

(d) If a claim is contested, it shall be paid within 30 days after the entry of a final nonappealable judgment against the insurer; the entry of a binding arbitration decision between the insurer, the beneficiary, and the Department, as applicable; or the execution of a settlement agreement between the insurer, the beneficiary, and the Department, as applicable.

(e) If an insurer fails to pay a claim within the applicable time period set forth in subsection (b), (c), or (d) of this section, it shall thereafter pay interest on the amount of the claim at the judgment rate allowed by law. Interest shall accrue from 30 days after the date the insurer receives a properly executed proof of loss.
8 V.S.A. § 3715 — VT Code / Title 8 / Chapter 103 / Section 3715
§ 3715. Forms for proof of loss to be furnished
Status: in_force

An insurer shall furnish upon written request of any person claiming to have a loss under an insurance policy issued by such insurer, forms of proof of loss for completion by such person, but such insurer shall not, by reason of the requirement so to furnish forms, have any responsibility for or with reference to the completion of such proof or the manner of any such completion or attempted completion.
8 V.S.A. § 3718a — VT Code / Title 8 / Chapter 103 / Section 3718a
§ 3718a. Charitable gift annuities
Status: in_force

(a) Charitable gift annuity is not insurance. The issuance of a charitable gift annuity by a qualified charitable organization does not constitute engaging in the business of insurance in this State.

(b) Not unfair or deceptive trade practice. The issuance of a charitable gift annuity does not constitute a violation of section 4724 of this title.
8 V.S.A. § 4225a — VT Code / Title 8 / Chapter 113 / Section 4225a
§ 4225a. Renewal policies
Status: in_force

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

(b) An insurer not complying with subsection (a) of this section shall grant its insured renewal coverage at the rate or premium in effect under the expiring or expired policy or at rates lawfully in effect on the expiration date, which have been approved by the Commissioner. This shall be done on a pro rata basis and shall continue for 45 days after the insurer confirms renewal coverage and premium. This subsection shall not apply if the insured accepts the renewal policy.

(c) An insurer may transfer a policy to an affiliate, as defined by subdivision 3681(1) of this title, upon expiration of the policy without providing notice of nonrenewal, provided that:

(1) the rating by A. M. Best or a similarly qualified rating service of the affiliate is equal to or better than the transferring insurer;

(2) there is no diminution in the terms and conditions of coverage; and

(3) notice of the transfer is provided to the insured at least 45 days prior to the transfer by first-class mail, and in connection with such notice the insurer:

(A) complies with any requirements of federal law relating to notice of adverse credit determination;

(B) includes in the notice of transfer a telephone number of the insurer, or the producer, if any, and a toll free telephone number of the insurer in the case of personal lines policies, where the insured can learn additional information concerning the transfer and the reasons for the transfer; and

(C) complies with the other provisions of this section relating to renewal policies.
8 V.S.A. § 19106 — VT Code / Title 8 / Chapter 209 / Section 19106
§ 19106. Withdrawals; rateable share of depositor's interest
Status: in_force

While restrictions are in force on the withdrawal of the deposits in a Vermont mutual or cooperative financial institution, except those imposed by the financial institution under the provisions of its internal governance documents, withdrawals shall be counted as a part of the rateable share of the withdrawing depositor's interest in the assets of a mutual or cooperative financial institution to which he or she was entitled at the time the restrictions were imposed if final liquidation of the financial institution takes place before all those restrictions are removed.
8 V.S.A. § 3576 — VT Code / Title 8 / Chapter 101 / Section 3576
§ 3576. Immunity from liability
Status: in_force

(a) No insurer nor any of its officers, employees, or agents shall have a cause of action against an authorized representative of the Commissioner or an examiner appointed by the Commissioner as a result of any statements made or work performed in good faith while carrying out the provisions of this subchapter.

(b) No cause of action shall arise, nor shall any liability be imposed against any person for the act of communicating or delivering information or data to the Commissioner or the Commissioner's authorized representative or examiner pursuant to an examination made under this section, if such act of communication or delivery was performed in good faith.

(c) This section does not abrogate or modify in any way any common law or statutory privilege or immunity heretofore enjoyed by any person identified in subsection (a) or (b) of this section.

(d) A person identified in subsection (a) or (b) of this section shall be entitled to an award of attorney's fees and costs if he or she is the prevailing party in a civil cause of action for libel, slander, or any other relevant tort arising out of activities in carrying out the provisions of this subchapter and the party bringing the action was not substantially justified in doing so. For purposes of this section, a proceeding is “substantially justified” if it had a reasonable basis in law or fact at the time that it was initiated.
8 V.S.A. § 4022a — VT Code / Title 8 / Chapter 107 / Section 4022a
§ 4022a. Rebates prohibited for group insurance policies
Status: in_force

(a) As used in this section, “group insurance” means any policy described in section 4041 of this title, except that it shall not include any small group policy issued pursuant to 33 V.S.A. § 1811.

(b) No health insurer doing business in this State and no insurance agent or broker shall:

(1) offer, promise, allow, give, set off, or pay, directly or indirectly:

(A) any rebate of or part of the premium payable on a group insurance policy, or on any group insurance policy or agent's commission on the premium or earnings, profits, dividends, or other benefits founded, arising, accruing, or to accrue on or from the premium;

(B) any special advantage in date of policy or age of issue;

(C) any paid employment or contract for services of any kind; or

(D) any other valuable consideration or inducement to or for insurance on any risk in this State, or for or upon any renewal of any such insurance, that is not specified in the health insurance plan; or

(2) offer, promise, give, option, sell, or purchase any stocks, bonds, securities, or property, or any dividends or profits accruing or to accrue on them, or other thing of value as inducement to insurance or in connection with insurance, or any renewal thereof, that is not specified in the health insurance plan.

(c) No person insured under a group insurance policy or party or applicant for group insurance shall directly or indirectly receive or accept or agree to receive or accept any rebate of premium or of any part of the premium, or all or any part of any agent's or broker's commission on the premium, or any favor or advantage, or share in any benefit to accrue under any health insurance plan, or any valuable consideration or inducement, that is not specified in the health insurance plan.

(d) Nothing in this section shall be construed as prohibiting:

(1) the payment of commission or other compensation to any duly licensed agent or broker;

(2) any health insurer from allowing or returning to its participating policyholders dividends, savings, or unused premium deposits;

(3) any health insurer from returning or otherwise abating, in full or in part, the premiums of its policyholders out of surplus accumulated from nonparticipating insurance; or

(4) the health insurer from taking a bona fide obligation, with interest not exceeding six percent per annum, in payment of any premium.

(e) A health insurer that pays a commission, fee, or other compensation, directly or indirectly, to a licensed or unlicensed agent, broker, or other individual other than a bona fide employee of the health insurer in connection with the sale of a group insurance policy shall clearly disclose to the purchaser of the policy the amount of any such commission, fee, or compensation paid or to be paid. (Recodified and amended 2025, No. 11, § 2, eff. September 1, 2025.)
8 V.S.A. § 3819 — VT Code / Title 8 / Chapter 103 / Section 3819
§ 3819. Certificate
Status: in_force

The group life insurance policy shall contain a provision that the insurer will issue to the policyholder for delivery to each person insured an individual certificate setting forth a statement as to the insurance protection to which he or she is entitled, to whom the insurance benefits are payable, and the rights and conditions set forth in sections 3820, 3821, and 3822 of this title. (1967, No. 344 (Adj. Sess.), § 1 (ch. 2, subch. 6, § 19).)
8 V.S.A. § 3578a — VT Code / Title 8 / Chapter 101 / Section 3578a
§ 3578a. Annual financial reporting
Status: in_force

The Commissioner shall adopt by rule the Annual Financial Reporting Model Regulation of the National Association of Insurance Commissioners, as may be amended from time to time, or in the Commissioner's discretion a regulation substantially similar thereto.
8 V.S.A. § 2515 — VT Code / Title 8 / Chapter 79 / Section 2515
§ 2515. Check cashing and currency exchange license required
Status: in_force

(a) A person shall not engage in check cashing and currency exchange, or hold itself out as providing these money services, unless the person is licensed under this chapter.

(b) Subsection (a) of this section shall not apply to:

(1) a person licensed under subchapter 2 of this chapter;

(2) an authorized delegate of a person licensed under subchapter 2 of this chapter if such money services are within the scope of authority conferred by a written contract between the authorized delegate and the licensee; or

(3) a person that is exempt pursuant to section 2504 of this chapter and that does not engage in money services outside the scope of such exemption.
8 V.S.A. § 7095 — VT Code / Title 8 / Chapter 145 / Section 7095
§ 7095. Ancillary summary proceedings
Status: in_force

The Commissioner in his or her sole discretion may institute proceedings under subchapter 2 of this chapter at the request of the Commissioner or other appropriate insurance official of the domiciliary state of any foreign or alien insurer having property located in this State.
8 V.S.A. § 3857 — VT Code / Title 8 / Chapter 103 / Section 3857
§ 3857. Licensing
Status: in_force

(a) No company shall deliver or issue for delivery within this State variable contracts unless it is licensed or organized to do a life insurance or annuity business in this State, and the Commissioner is satisfied that its condition or method of operation in connection with the issuance of such contracts will not render its operation hazardous to the public or its policyholders in this state. In this connection, the Commissioner shall consider among other things:

(1) the history and financial condition of the company;

(2) the character, responsibility and fitness of the officers and directors of the company; and

(3) the law and regulation under which the company is authorized in the state of domicile to issue variable contracts.

(b) If the company is a subsidiary of an admitted life insurer, or affiliated with such insurer through common management or ownership, it may be deemed by the Commissioner to have met the provisions of this section if either it or the parent or the affiliated insurer meets the requirements hereof.
8 V.S.A. § 8203 — VT Code / Title 8 / Chapter 157 / Section 8203
§ 8203. Definitions
Status: in_force

As used in this chapter:

(1) “Assuming insurer” means the insurer that acquires an insurance obligation or risk from the transferring insurer pursuant to an assumption reinsurance agreement.

(2) “Assumption reinsurance agreement” means any contract, whether or not coupled with a reinsurance or indemnity agreement, that:

(A) transfers insurance obligations or risks of existing or in-force contracts of insurance from a transferring insurer to an assuming insurer; and

(B) is intended to effect a novation of the transferred contract of insurance with the result that the assuming insurer becomes directly and solely liable to the policyholders of the transferring insurer and the transferring insurer's insurance obligations or risks under the contracts are extinguished.

(3) “Contract of insurance” means any written agreement between an insurer and policyholder pursuant to which the insurer, in exchange for premium or other consideration, agrees to assume an obligation or risk of the policyholder or to make payments on behalf of, or to, the policyholder or any beneficiary. “Contract of insurance” includes all property, casualty, life, health, accident, surety, title, and annuity business authorized to be written pursuant to the insurance laws of this State.

(4) “Home service business” means insurance business on which premiums are collected on a weekly or monthly basis by an agent of the insurer.

(5) “Notice of transfer” means the written notice to policyholders required by subsection 8204(a) of this title.

(6) “Policyholder” means any individual or entity who owns or has the right to terminate or otherwise alter the terms of a contract of insurance. It includes any certificateholder whose certificate is in force on the proposed effective date of the assumption, if the certificateholder has the right to keep the certificate in force without change in benefit following termination of the group policy. The right to keep the certificate in force referred to in this subdivision shall not include the right to elect individual coverage arising out of a group contract continued pursuant to the Consolidated Omnibus Budget Reconciliation Act (“COBRA”), Section 601, et seq., of the Employee Retirement Income Security Act of 1974, as amended, 29 U.S.C. § 1161 et seq., or chapter 107, subchapter 4 of this title.

(7) “Transferring insurer” means the insurer that transfers an insurance obligation or risk to an assuming insurer pursuant to an assumption reinsurance agreement.
8 V.S.A. § 3384 — VT Code / Title 8 / Chapter 101 / Section 3384
§ 3384. Service upon other agents; notice to defendant
Status: in_force

Service of process in any such action, suit, or proceeding shall in addition to the manner provided in section 3383 of this title be valid if served upon any person within this State who, in this State on behalf of such insurer, is:

(1) soliciting insurance; or

(2) making, issuing, or delivering any contract of insurance; or

(3) collecting or receiving any premium, membership fee, assessment, or other consideration for insurance; and a copy of such process is sent within 14 days thereafter by registered mail by the plaintiff or plaintiff's attorney to the defendant at the last known principal place of business of the defendant, and the defendant's receipt, or the receipt issued by the post office with which the letter is registered, showing the name of the sender of the letter and the name and address of the person to whom the letter is addressed, and the affidavit of the plaintiff or plaintiff's attorney showing a compliance herewith are filed with the clerk of the court in which such action is pending on or before the date the defendant is required to appear, or within such further time as the court may allow.
8 V.S.A. § 6071 — VT Code / Title 8 / Chapter 142A / Section 6071
§ 6071. Definitions
Status: in_force

As used in this chapter:

(1)(A) “Managing general agent” means any person who:

(i) manages all or part of the insurance business of a risk retention group and acts as an agent for such risk retention group, and, who, either separately or together with affiliates, underwrites gross written premium in any one-quarter or year that exceeds the greater of:

(I) 25 percent of the risk retention group's policyholder surplus or capital; or

(II) $250,000.00; and

(ii) adjusts or pays, on behalf of the risk retention group, with settlement authority, claims in excess of $25,000.00 per occurrence or $250,000.00 in the aggregate.

(B) “Managing general agent” shall also mean a person who otherwise would be deemed as such, but for the fact that it underwrites gross written premium of less than the amounts specified above, but during the risk retention group's preceding fiscal year underwrote in excess of 10 percent of the risk retention group's gross written premium.

(C) Notwithstanding the provisions of subdivisions (1)(A) and (B) of this section, the following persons shall not be considered as managing general agents of a risk retention group:

(i) an officer, director, or employee of the risk retention group or of any person described in subdivisions (ii) and (iii) of this subdivision (C), provided the officer or director is not individually licensed as a managing general agent hereunder;

(ii) a person affiliated with or under common control with the risk retention group;

(iii) an association, society, or other entity, or any person under common ownership or control therewith, that has, directly or indirectly, as its owners or members, persons who are policyholders or are eligible to become policyholders of the risk retention group; and

(iv) an attorney-in-fact of a risk retention group organized as a reciprocal, or any person affiliated with or under common control with the attorney-in-fact.

(2) “Reinsurance intermediary” has the same meaning as set forth in subdivision 4815(9) of this title.

(3) “Risk retention group” means a company referred to in section 6070 of this title domiciled in this State.

(4) “Underwrite” means the authority to accept or reject risk on behalf of the risk retention group.
8 V.S.A. § 5026 — VT Code / Title 8 / Chapter 138 / Section 5026
§ 5026. Solvent insurers required
Status: in_force

(a) Where Vermont is the home state of the insured, surplus lines brokers shall not knowingly place or continue surplus lines insurance with surplus lines insurers who are insolvent or unsound financially, and in no event shall any surplus lines broker place any insurance with a non-admitted insurer unless such insurer:

(1) has and maintains capital and surplus or its equivalent under the laws of its domiciliary jurisdiction that equals the greater of:

(A) the minimum capital and surplus requirements under the law of this State; or

(B) $15,000,000.00; and

(2) if an alien insurer is listed on the quarterly listing of alien insurers maintained by the NAIC international insurers department.

(b) Notwithstanding the capital and surplus requirements of this section, a surplus lines insurer may receive approval upon an affirmative finding of acceptability by the Commissioner. The finding shall be based upon such factors as quality of management, capital, and surplus of any parent company, company underwriting profit and investment-income trends, market availability, and company record and reputation within the industry. In no event, however, shall the Commissioner make an affirmative finding of acceptability when the surplus lines insurer's capital and surplus is less than $4,500,000.00.

(c) The Commissioner may from time to time publish a list of all non-admitted insurers deemed by him or her to be currently eligible surplus lines insurers under the provisions of this section, and shall mail a copy of such list to each surplus lines broker. This subsection shall not be deemed to cast upon the Commissioner the duty of determining the actual financial condition or claims practices of any non-admitted insurer; and the status of eligibility, if granted by the Commissioner, shall indicate only that the insurer appears to be sound financially and to have satisfactory claims practices, and that the Commissioner has no credible evidence to the contrary. While any such list is in effect, the surplus lines broker shall restrict to the insurers so listed all surplus lines insurance business placed by him or her. However, upon the request of a surplus lines broker or an insured, the Commissioner may deem a non-admitted insurer to be an eligible surplus lines insurer for purposes of this subsection prior to publication of the name of such surplus lines insurer on the list.
8 V.S.A. § 2118 — VT Code / Title 8 / Chapter 72 / Section 2118
§ 2118. Joint examinations
Status: in_force

(a)(1) The Commissioner may conduct an on-site examination in conjunction with representatives of other state agencies or agencies of another state or of the federal government.

(2) Instead of an examination, the Commissioner may accept the examination report of an agency of this State or of another state or of the federal government or a report prepared by an independent certified public accountant.

(b)(1) A joint examination or an acceptance of an examination report does not preclude the Commissioner from conducting an examination as provided by law.

(2) A joint report or a report accepted under this subsection is an official report of the Commissioner for all purposes.
8 V.S.A. § 19311 — VT Code / Title 8 / Chapter 209 / Section 19311
§ 19311. Order to discontinue unauthorized practices
Status: in_force

Whenever it appears to the Commissioner from the examination made by him or her, or from any report made to him or her, that a Vermont financial institution has committed a violation of its charter or of law, or is conducting its business and affairs in an unsafe or unauthorized manner, or that it or any of its officers have failed to comply with all the rules, restrictions, and conditions provided by law, including the rules and requirements of the Commissioner made in conformity to law, the Commissioner shall, by a written order delivered to the treasurer of such organization and the offending officer or officers, direct such organization and such officer or officers to discontinue such illegal, unsafe, or unauthorized practices or conduct, and to proceed in strict conformity with the requirements of law.
8 V.S.A. § 4986 — VT Code / Title 8 / Chapter 137 / Section 4986
§ 4986. Deficits
Status: in_force

(a) In the event an association suffers an underwriting deficit for any year, the board of directors shall so certify to the Commissioner. Such certification shall be subject to the review and approval of the Commissioner. As provided in the plan of operation, but in a term not to exceed one year, each policyholder shall pay to the association a premium contingency assessment that bears the same ratio to the amount of such deficit as his or her premium for such year for insurance written or reinsured by the association bore to the total premiums paid to the association for such year. The association may cancel any policy of any policyholder who fails to pay the premium contingency assessment and need not pay any future claims against that policyholder. Any deficit premium contingency assessment uncollectible against any policyholder shall not be assessed against any other policyholder or policyholders.

(b) In no event shall a deficit incurred by an association be charged directly or indirectly to any insured other than a policyholder insured through an association.

(c) An association shall amend the amount of its certification of deficit to the Commissioner as the values of its incurred losses become finalized, and the members of the association shall upon approval by the Commissioner amend their recoupment procedure accordingly. The board of directors of an association may require all members to contribute on a temporary basis to the financial requirements of the association prior to recoupment of any deficit in such proportion as shall be specified in the plan.
8 V.S.A. § 6048f — VT Code / Title 8 / Chapter 141 / Section 6048f
§ 6048f. Formation
Status: in_force

(a) A special purpose financial insurance company may be incorporated as a stock insurer with its capital divided into shares and held by its stockholders, or it may be organized as a manager-managed limited liability company.

(b) A special purpose financial insurance company's organizational documents shall limit the special purpose financial insurance company's authority to transact the business of insurance or reinsurance to those activities that the special purpose financial insurance company conducts to accomplish its purposes as expressed in this subchapter.
8 V.S.A. § 5033 — VT Code / Title 8 / Chapter 138 / Section 5033
§ 5033. Records of surplus lines broker
Status: in_force

(a) Where Vermont is the home state of the insured, each surplus lines broker shall keep in his or her office a full and true record of each surplus lines insurance contract covering a domestic risk placed by or through him or her with a surplus lines insurer, including a copy of the daily report, if any, and showing such of the following items as may be applicable:

(1) amount of the insurance and perils insured;

(2) brief description of property insured and its locations;

(3) gross premium charged;

(4) any return premium paid;

(5) rate of premium charged upon the several items of property;

(6) effective date of the contract and its terms;

(7) name and post office address of the insured;

(8) name and post office address of the insurer;

(9) name and post office address of brokerage house, if applicable, and name of licensed individual producer with whom business was placed;

(10) amount collected from the insured; and

(11) other information as may be required by the Commissioner.

(b) The record of each contract shall be kept open to examination by the Commissioner without notice until three years next following termination of the contract.
8 V.S.A. § 2543 — VT Code / Title 8 / Chapter 79 / Section 2543
§ 2543. Types of permissible investments
Status: in_force

(a) The following investments are permissible under section 2542 of this subchapter:

(1) Cash, including demand deposits, savings deposits, and funds in such accounts held for the benefit of the licensee's customers in an entity identified as exempt under subdivision 2504(7) of this chapter, and cash equivalents, including ACH items in transit to the licensee and ACH items or international wires in transit to a payee, cash in transit via armored car, cash in smart safes, cash in licensee-owned locations, debit card or credit card-funded transmission receivables owed by any bank, or money market mutual funds rated “AAA” by S&P or the equivalent from any eligible rating service.

(2) Certificates of deposit or senior debt obligations of an insured depository institution, as defined in the Federal Deposit Insurance Act, 12 U.S.C. § 1813(c), as may be amended, or as defined under the federal Credit Union Act, 12 U.S.C. § 1781, as may be amended.

(3) An obligation of the United States or a commission, department, agency, or instrumentality thereof; an obligation that is guaranteed fully as to principal and interest by the United States; or an obligation of a state or a governmental subdivision, agency, or instrumentality thereof.

(4) The full drawable amount of an irrevocable standby letter of credit for which the stated beneficiary is the Commissioner that stipulates that the beneficiary need only draw a sight draft under the letter of credit and present it to obtain funds up to the letter of credit amount within seven days of presentation of the items required by subdivision (a)(4)(C) of this section.

(A) The letter of credit shall:

(i) be issued by a financial institution as defined in subdivision 11101(32) of this title with federally insured deposits, a credit union with federally insured deposits, a foreign bank that is authorized under federal law to maintain a federal agency or federal branch office in a state or states, or a foreign bank that is authorized under state law to maintain a branch in a state that:

(I) bears an eligible rating or whose parent company bears an eligible rating; and

(II) is regulated, supervised, and examined by federal or state authorities having regulatory authority over banks, credit unions, and trust companies;

(ii) be irrevocable, unconditional, and indicate that it is not subject to any condition or qualifications outside of the letter of credit;

(iii) not contain reference to any other agreements, documents, or entities, or otherwise provide for any security interest in the licensee; and

(iv) contain an issue date and expiration date, and expressly provide for automatic extension, without a written amendment, for an additional period of one year from the present or each future expiration date, unless the issuer of the letter of credit notifies the Commissioner in writing by certified or registered mail or courier mail or other receipted means, at least 60 days prior to any expiration date, that the irrevocable letter of credit will not be extended.

(B) In the event of any notice of expiration or non-extension of a letter of credit issued under subdivision (a)(4)(A) of this section, the licensee shall be required to demonstrate to the satisfaction of the Commissioner, 15 days prior to expiration, that the licensee maintains and will maintain permissible investments in accordance with subsection 2542(a) of this subchapter upon the expiration of the letter of credit. If the licensee is not able to do so, the Commissioner may draw on the letter of credit in an amount up to the amount necessary to meet the licensee's requirements to maintain permissible investments in accordance with subsection 2542(a) of this subchapter. Any such draw shall be offset against the licensee's outstanding money transmission obligations. The drawn funds shall be held in trust by the Commissioner or the Commissioner's designated agent, to the extent authorized by law, as agent for the benefit of the purchasers and holders of the licensee's outstanding money transmission obligations.

(C) The letter of credit shall provide that the issuer of the letter of credit will honor, at sight, a presentation made by the beneficiary to the issuer of the following documents on or prior to the expiration date of the letter of credit:

(i) the original letter of credit, including any amendments; and

(ii) a written statement from the beneficiary stating that any of the following events have occurred:

(I) the filing of a petition by or against the licensee under the U.S. Bankruptcy Code, 11 U.S.C. §§ 101–110, as may be amended, for bankruptcy or reorganization;

(II) the filing of a petition by or against the licensee for receivership or the commencement of any other judicial or administrative proceeding for its dissolution or reorganization;

(III) the seizure of assets of a licensee by a Commissioner pursuant to an emergency order issued in accordance with applicable law on the basis of an action, a violation, or a condition that has caused or is likely to cause the insolvency of the licensee; or

(IV) the beneficiary has received notice of expiration or non-extension of a letter of credit and the licensee failed to demonstrate to the satisfaction of the beneficiary that the licensee will maintain permissible investments in accordance with subsection 2542(a) of this subchapter upon the expiration or non-extension of the letter of credit.

(D) The Commissioner may designate an agent to serve on the Commissioner's behalf as beneficiary to a letter of credit provided the agent and letter of credit meet requirements established by the Commissioner. The Commissioner's agent may serve as agent for multiple licensing authorities for a single irrevocable letter of credit if the proceeds of the drawable amount for the purposes of this subdivision are assigned to the Commissioner.

(E) The Commissioner is authorized and encouraged to participate in multistate processes designed to facilitate the issuance and administration of letters of credit, including services provided by the NMLS and State Regulatory Registry, LLC.

(5) One hundred percent of the surety bond or deposit provided for under section 2541 of this subchapter that exceeds the average daily money transmission liability in this State.

(b) Unless permitted by the Commissioner by rule or order to exceed the limit as set forth in this subchapter, the following investments are permissible under subsection 2542(a) of this subchapter to the extent specified:

(1) Receivables that are payable to a licensee from its authorized delegates in the ordinary course of business that are less than seven days old, up to 50 percent of the aggregate value of the licensee's total permissible investments.

(2) Of the receivables permissible under subdivision (b)(1) of this section, receivables that are payable to a licensee from a single authorized delegate in the ordinary course of business may not exceed 10 percent of the aggregate value of the licensee's total permissible investments.

(3) The following investments are permissible up to 20 percent per category and combined up to 50 percent of the aggregate value of the licensee's total permissible investments:

(A) a short-term investment of up to six months bearing an eligible rating;

(B) commercial paper bearing an eligible rating;

(C) a bill, note, bond, or debenture bearing an eligible rating;

(D) U.S. tri-party repurchase agreements collateralized at 100 percent or more with U.S. government or agency securities, municipal bonds, or other securities bearing an eligible rating;

(E) money market mutual funds rated less than “AAA” and equal to or higher than “A-” by S&P or the equivalent from any other eligible rating service; and

(F) a mutual fund or other investment fund composed solely and exclusively of one or more permissible investments listed in subdivisions (a)(1)–(3) of this section.

(4) Cash, including demand deposits, savings deposits, and funds in such accounts held for the benefit of the licensee's customers, at foreign depository institutions are permissible up to 10 percent of the aggregate value of the licensee's total permissible investments if the licensee has received a satisfactory rating in its most recent examination and the foreign depository institution:

(A) has an eligible rating;

(B) is registered under the Foreign Account Tax Compliance Act;

(C) is not located in any country subject to sanctions from the Office of Foreign Asset Control; and

(D) is not located in a high-risk or non-cooperative jurisdiction as designated by the Financial Action Task Force.
8 V.S.A. § 7007 — VT Code / Title 8 / Chapter 143 / Section 7007
§ 7007. Limitation on interest and other charges
Status: in_force

(a) An insurance premium finance company shall not charge, contract for, receive, or collect an interest charge or any fee, other than as permitted by this chapter.

(b) The interest is to be computed on the balance of the premiums due (after subtracting the down payment made by the insured in accordance with the insurance premium finance agreement) from the effective date of the insurance contract, for which the premiums are being advanced, to and including the date when the final installment of the insurance premium finance agreement is payable.

(c) The interest rate shall not exceed the rates permitted by 9 V.S.A. § 41a(b)(5), or a nonrefundable charge of $15.00 per insurance premium finance agreement, whichever is greater, except as provided in this section. If the insurance policy that is the subject of the insurance premium finance agreement is for other than personal, family, or household purposes, then the parties to the contract may agree upon any rate of interest that shall be stated in the insurance premium finance agreement. The interest permitted by this subsection anticipates timely repayment in consecutive monthly installments equal in amount for a period of one year. For repayment in greater or lesser periods or in unequal, irregular, or other than monthly installments, the interest may be computed at an equivalent effective rate having due regard for the timely payments of installments.

(d) Notwithstanding the provisions of any insurance premium finance agreement, an insured may prepay the obligation in full at any time. In such event, the insured shall receive a refund credit, which refund credit shall be computed according to the actuarial method on the assumption that all payments were made as originally scheduled. Where the amount of the refund credit is less than $1.00, no refund need be made, unless specifically requested by the insured.
8 V.S.A. § 8207 — VT Code / Title 8 / Chapter 157 / Section 8207
§ 8207. Commissioner's powers
Status: in_force

(a) Except as provided in subsection 8204(f) of this title, the Commissioner shall approve all forms used by an insurer in a transaction under this subchapter, including the notice of transfer, the assumption contract, any related reinsurance or indemnity contract, the proposed assumption certificate, and any proposed premium or other notice proposed to give notice of and to reserve a policyholder's right to make premium payments without consenting to the assumption or transfer.

(b) If an insurer domiciled in this State or in a jurisdiction having a substantially similar law is deemed by the domiciliary commissioner to be in hazardous financial condition or an administrative proceeding has been instituted against it for the purpose of reorganizing or conserving the insurer, and the transfer of the contracts of insurance is in the best interests of the policyholders, as determined by the domiciliary commissioner, a transfer and novation may be effected notwithstanding the provisions of this chapter to the contrary. The Commissioner shall approve the transfer and the form of notice to policyholders, that shall describe the circumstances that require the transfer. The Commissioner may, in the Commissioner's discretion, permit assumption based on implied consent.

(c) Any insurer failing, without just cause, to file timely any form as required in this chapter shall be required to pay a penalty of not more than $10,000.00 for each form, with a maximum penalty of $100,000.00. In assessing any penalty under this provision, the Commissioner shall consider whether the violation was willful, the amount of the violator's gain, the damages to Vermont policyholders, the remedial actions taken by the violator, and any other factors the Commissioner finds relevant. The Commissioner may void any transfer and restore the status quo if the transfer was not approved in accordance with section 8204 of this title. In determining whether to void a transfer, the Commissioner shall consider the interests of policyholders, creditors, and the public. Insurers charged with a violation of this chapter shall be entitled to notice and an opportunity to be heard in accordance with 3 V.S.A. chapter 25. No private right of action shall arise from this section.

(d) In the case of policyholders who do not reside in this State, and where the insurance regulatory authority in such other state has approved or intends to approve the notice requirements and other policyholder rights with respect to such policyholders, the Commissioner shall defer to the decisions of such other insurance regulatory authority. In the case of policyholders who do not reside in this State, and where the insurance regulatory authority in such other state has not established an obligation to file forms used by an insurer in a transaction under this subchapter, the Commissioner may modify notice requirements and other policyholder rights when in his or her judgment it appears that the interests of the policyholders and insurers are best served by the exercise of such discretion. Factors to be considered in making this determination shall include the following:

(1) the existence of duplicative or conflicting requirements in other jurisdictions;

(2) the number of Vermont policyholders affected by a proposed assumption transaction;

(3) the number of states that have adopted assumption reinsurance requirements substantially similar to those set forth in this chapter;

(4) the impact of the assumption reinsurance transaction on the insurance companies involved in a transaction;

(5) the possibility of adverse consequences to policyholders choosing to opt out of an assumption transaction;

(6) the possibility of adverse consequences to policyholders if a significant number of other policyholders opt out of the transaction;

(7) the economic consequences of imposing notice and policyholder rights provisions on Vermont domestic insurance companies; and

(8) such other factors that the Commissioner deems to be relevant.

(e) The Commissioner may modify or waive the notice, consent, and other requirements of this chapter where the transfer of the obligations or risks on contracts of insurance pursuant to an assumption reinsurance agreement is part of a voluntary plan of dissolution by the transferring insurer and where the Commissioner is satisfied the transfer will adequately protect the interests of the affected policyholders.
8 V.S.A. § 3763 — VT Code / Title 8 / Chapter 103 / Section 3763
§ 3763. Computation of cash surrender value
Status: in_force

(a) Any cash surrender value available under the policy in the event of default in a premium payment due on any policy anniversary, whether or not required by section 3762 of this subchapter, shall be an amount not less than the excess, if any, of the present value, on the anniversary, of the future guaranteed benefits that would have been provided for by the policy, including any existing paid-up additions, if there had been no default, over the sum of:

(1) the then present value of the adjusted premiums as defined in sections 3765-3768 of this subchapter, corresponding to premiums that would have fallen due on and after the anniversary; and

(2) the amount of any indebtedness to the company on the policy.

(b) Notwithstanding subsection (a) of this section, for a policy issued on or after the operative date of section 3768 of this subchapter that provides supplemental life insurance or annuity benefits at the option of the insured and for an identifiable additional premium by rider or supplemental policy provision, the cash surrender value referred to in subsection (a) of this section shall be an amount not less than the sum of the cash surrender value for an otherwise similar policy issued at the same age without the rider or supplemental policy provision and the cash surrender value as defined in subsection (a) of this section for a policy that provides only the benefits otherwise provided by such rider or supplemental policy provision.

(c) For a family policy issued on or after the operative date of section 3768 of this subchapter that defines a primary insured and provides term insurance on the life of the spouse of the primary insured expiring before the spouse turns 71 years of age, the cash surrender value referred to in subsection (a) of this section shall be an amount not less than the sum of the cash surrender value for an otherwise similar policy issued at the same age without term insurance on the life of the spouse and the cash surrender value as defined in subsection (a) of this section for a policy that provides only the benefits otherwise provided by term insurance on the life of the spouse.

(d) A cash surrender value available within 30 days after any policy anniversary under any policy paid up by completion of all premium payments or any policy continued under any paid-up nonforfeiture benefit, whether or not required under section 3762 of this subchapter, shall be an amount not less than the present value, on the anniversary, of the future guaranteed benefits provided for by the policy, including any existing paid-up additions, decreased by any indebtedness to the company on the policy.
8 V.S.A. § 2233 — VT Code / Title 8 / Chapter 73 / Section 2233
§ 2233. Charges; loan solicitation; specialized financing
Status: in_force

(a) Other than a mortgage broker fee pursuant to section 2219 of this title, no person who is required to be licensed under this chapter, shall directly or indirectly charge, contract for, or receive any interest, discount, consideration, or charge greater than is authorized by 9 V.S.A. § 41a or 46. No such loan for which a greater rate of interest, finance charge, consideration, or charges than is authorized by 9 V.S.A. § 41a or 46 has been charged, contracted for, or received shall be enforced in this State, and every person in any way participating therein in this State shall be subject to the provisions of this chapter. However, any loan legally made in any state which then had in effect a regulatory loan law similar in principle to this chapter may be enforced in this State only to the extent of collecting the principal amount owed and interest thereon at a rate not greater than that authorized by 9 V.S.A. § 41a or 46.

(b) A loan solicited or made by mail, telephone, or electronic means to a Vermont resident shall be subject to the provisions of this chapter notwithstanding where the loan was legally made. No person shall engage in the business of soliciting or making loans by mail, telephone, or electronic means to residents of this State unless duly licensed. Such licensee shall be subject to the applicable provisions of this title and 9 V.S.A. chapters 4, 59, and 61, but shall not be required to have or maintain a place of business in the State.

(c) No person other than a depository institution, pawnbroker, insurance company, or seller of merchandise or services shall engage in specialized financing, including tuition plans or other such financing, but not including insurance premium financing, for residents of this State unless duly licensed. Such licensee shall be subject to the applicable provisions of this title and 9 V.S.A. chapters 4, 59, and 61, but shall not be required to maintain a place of business in this State. Such financing may include more than one loan per borrower. A license granted to such lenders shall be explicit in its authority with respect to the types of business permitted.
8 V.S.A. § 8009 — VT Code / Title 8 / Chapter 151 / Section 8009
§ 8009. Reserve requirements
Status: in_force

A provider shall maintain a reserve fund equal to annual principal and interest payments on all debt or 15 percent of annual operating expenses, whichever is greater. The Department may require that these funds be placed in an escrow account, or other similarly secure investment where the funds are protected. The Department shall approve any withdrawal or borrowing from these funds and shall monitor repayment.
8 V.S.A. § 3443 — VT Code / Title 8 / Chapter 101 / Section 3443
§ 3443. Regulated as an insurance company
Status: in_force

(a) A stock insurance company resulting from the reorganization of a domestic mutual insurance company shall be regulated as a stock insurance company under this title and shall have all the rights, privileges, immunities, and powers of the former mutual insurance company and shall be subject to all the duties and liabilities of an insurer organized under this title.

(b) The Commissioner shall retain jurisdiction over a mutual insurance holding company and any stock insurance holding company to ensure that policyholder interests are protected. A mutual insurance holding company and any stock insurance holding company are deemed to be insurers subject to chapter 145 of this title. A mutual insurance holding company and any stock insurance holding company shall automatically be a party to any proceeding under chapter 145 of this title involving a stock insurance company reorganized under this subchapter. In any proceeding under chapter 145 of this title involving a reorganized stock insurance company, the assets of the mutual insurance holding company and any stock insurance holding company are deemed to be assets of the estate of the reorganized insurance company for purposes of satisfying the claims of the reorganized insurance company's policyholders. A mutual insurance holding company shall not dissolve or liquidate without the approval of the Commissioner or as ordered by the Superior Court pursuant to chapter 145 of this title. The Commissioner shall have jurisdiction over a stock insurance holding company as if it were a mutual insurance holding company.

(c) Acquisitions and investments by mutual insurance holding companies, including those acquisitions pursuant to subsection 3442(b) of this title, shall be subject to the procedures and standards prescribed by chapter 101, subchapter 13 of this title. Mutual insurance holding companies and stock insurance holding companies shall be considered a domestic insurer for purposes of such acquisition.
8 V.S.A. § 3502 — VT Code / Title 8 / Chapter 101 / Section 3502
§ 3502. Insurance-Other life insurance and annuities
Status: in_force

For all policies of insurance other than life insurance and annuities, the insurer shall maintain reserves that shall place a sound value on its liabilities under such policies and that shall not be less than the reserves according to appropriate standards set forth in regulations issued by the Commissioner and, in no event, less in the aggregate than the pro rata gross unearned premium reserve for such policies.
8 V.S.A. § 2127 — VT Code / Title 8 / Chapter 72 / Section 2127
§ 2127. Networked supervision
Status: in_force

(a) To efficiently and effectively administer and enforce this chapter and to minimize regulatory burden, the Commissioner is authorized and encouraged to participate in multistate supervisory processes established between states and coordinated through the Conference of State Bank Supervisors, Money Transmitter Regulators Association, and affiliates and successors thereof, for all licensees that hold licenses in Vermont and in other states. As a participant in multistate supervision, the Commissioner may:

(1) cooperate, coordinate, and share information with other state and federal regulators in accordance with section 22 of this title and section 2126 of this chapter;

(2) enter into written cooperation, coordination, or information-sharing contracts or agreements with organizations the membership of which is comprised of state or federal governmental agencies; and

(3) cooperate, coordinate, and share information with organizations the membership of which is made up of state or federal governmental agencies, provided that the organizations agree in writing to maintain the confidentiality and security of the shared information in accordance with section 22 of this title.

(b) The Commissioner shall not waive, and nothing in this section constitutes a waiver of, the Commissioner's authority to conduct an examination or investigation or otherwise take independent action authorized by this chapter or a rule adopted or order issued under this chapter to enforce compliance with applicable State or federal law.
8 V.S.A. § 8206 — VT Code / Title 8 / Chapter 157 / Section 8206
§ 8206. Effect of consent
Status: in_force

If a policyholder consents or is deemed to have consented to the transfer pursuant to section 8205 of this title or if the transfer is effected under subsection 8207(b) of this title, there shall be a novation of the contract of insurance subject to the assumption reinsurance agreement with the result that the transferring insurer shall thereby be relieved of all insurance obligations or risks transferred under the assumption reinsurance agreement and the assuming insurer shall become directly and solely liable to the policyholder for those insurance obligations or risks.
8 V.S.A. § 3567 — VT Code / Title 8 / Chapter 101 / Section 3567
§ 3567. Liquor liability insurance records
Status: in_force

(a) All insurers licensed to sell insurance, including nonadmitted insurers with whom certain types of insurance may be placed as permitted by chapter 138 of this title, shall submit the following liquor liability insurance statistics to the Commissioner of Financial Regulation who shall collect and maintain records on the following:

(1) the number of policies written, premiums written, and premiums earned for liquor liability insurance;

(2) the number of claims paid and dollar amount of claims paid; and

(3) the number of claims incurred and dollar amount of claims incurred.

(b) The Commissioner of Financial Regulation shall make available to the General Assembly the information collected and maintained under this section. The Commissioner shall report to the General Assembly the number of companies writing liquor liability insurance.

(c) If an insurer cannot determine the amount of premiums written or premiums earned because the liquor liability coverage is part of a policy or policies providing other liability coverage, reasonable methods of estimation may be used as approved by the Commissioner of Financial Regulation.

(d) “Liquor liability insurance” means that type of liability insurance that covers the selling or serving of alcoholic beverages for a consideration and includes policies that provide other liability coverage in addition to liquor liability insurance.
8 V.S.A. § 3661 — VT Code / Title 8 / Chapter 101 / Section 3661
§ 3661. Cease and desist powers; prosecutions and penalties
Status: in_force

(a) When the Commissioner believes that an insurer or an officer or agent thereof, or any other person, has violated the law, an administrative rule of the Department, or an order of the Commissioner relating to insurance, or has not complied with its requirements, he or she:

(1) may issue an order to cease and desist such violation or activity. Such an order shall be subject to de novo judicial review in the Washington Superior Court, but such review shall not stay the enforcement of the Commissioner's order while under review, unless the court shall so determine after a preliminary hearing that a stay of enforcement will not unduly injure the interests of the people of the State, in which case a stay of execution may be granted;

(2) may report each violation with any information he or she has relating thereto to the Attorney General who shall prosecute therefor if he or she deems it advisable. The offender shall be fined not more than $2,000.00 as a result of any such prosecution by the Attorney General; and

(3) may, after notice and opportunity for hearing, impose a civil administrative penalty of not more than $1,000.00 for each violation, and not more than $10,000.00 for each willful violation.

(b) The powers vested in the Commissioner by this section shall be in addition to any other powers to enforce penalties, fines, or forfeitures authorized by law with respect to violations of the law relating to insurance, except that the Commissioner shall not impose an administrative penalty under subdivision (a)(3) of this section if the Commissioner may impose another administrative penalty authorized by law for the same violation.

(c) An employer who makes a false statement or representation that results in a lower workers' compensation premium, after notice and opportunity for hearing before the Commissioner, may be assessed an administrative penalty of not more than $20,000.00 in addition to any other appropriate penalty. In addition, an employer found to have violated this section is prohibited from contracting, directly or indirectly, with the State or any of its subdivisions for up to three years following the date the employer was found to have made a false statement or misrepresentation, as determined by the Commissioner in consultation with the Commissioner of Buildings and General Services or the Secretary of Transportation, as appropriate. Either the Secretary or the Commissioner, as appropriate, shall be consulted in any appeal relating to prohibiting the employer from contracting with the State or its subdivisions.

(d) Any person who knowingly makes a false statement or representation in an application, petition, certification, or verification made in accordance with the provisions of this title, or of 18 V.S.A. chapter 221, or a certification or other filing with the Interstate Insurance Product Regulation Commissioner under chapter 165 of this title, after notice and opportunity for hearing before the Commissioner of Financial Regulation, may be assessed an administrative penalty of not more than $5,000.00. The authority granted to the Commissioner by this subsection shall be in addition to any other authority granted to the Commissioner by law.
8 V.S.A. § 3702 — VT Code / Title 8 / Chapter 103 / Section 3702
§ 3702. Other prohibited practices
Status: in_force

A life insurance company doing business in the State or an agent thereof shall not:

(1) issue a policy of insurance or make an agreement other than that plainly expressed in the policy issued to the insured;

(2) pay or allow, or offer to pay or allow, as an inducement to insurance, a rebate or premium payable on the policy;

(3) grant a special favor or advantage in the dividends or other benefits to accrue thereon; or

(4) provide any valuable consideration or inducement not specified in the policy.
8 V.S.A. § 3683a — VT Code / Title 8 / Chapter 101 / Section 3683a
§ 3683a. Acquisitions involving insurers not otherwise covered
Status: in_force

(a) Definitions. For the purposes of this section:

(1) “Acquisition” means any agreement, arrangement, or activity the consummation of which results in a person acquiring directly or indirectly the control of another person and includes the acquisition of voting securities and assets, bulk reinsurance, and mergers.

(2) “Highly concentrated market” is a market in which the share of the four largest insurers is 75 percent or more of the market.

(3) “Insurer” means a company licensed to do business in this State and includes any company or group of companies under common management, ownership, or control.

(4) “Involved insurer” includes an insurer that either acquires or is acquired, is affiliated with an acquirer or acquired, or is the result of a merger.

(5) “Market” means the relevant product and geographical markets. In determining the relevant product and geographical markets, the Commissioner shall give due consideration to, among other things, the definitions or guidelines, if any, adopted by the NAIC and to information, if any, submitted by parties to the acquisition. In the absence of sufficient information to the contrary, the relevant product market is assumed to be the direct written insurance premium for a line of business, such line being that used in the annual statement required to be filed by insurers doing business in this State, and the relevant geographical market is assumed to be this State.

(6) “Significant trend toward increased concentration” means the aggregate market share of any grouping of the largest insurers in the market, from the two largest to the eight largest, has increased by seven percent or more of the market over a period of time extending from any base year five to 10 years prior to the acquisition up to the time of the acquisition.

(b) Covered acquisitions. Except as provided in this subsection, this section applies to any acquisition in which there is a change in control of an insurer licensed to do business in this State, but not domiciled in this State. This section shall not apply to the following:

(1) A purchase of securities solely for investment purposes so long as the securities are not used by voting or otherwise to cause or attempt to cause the substantial lessening of competition in any insurance market in this State. If a purchase of securities results in a presumption of control under subdivision 3681(3) of this chapter, it is not solely for investment purposes unless the commissioner of the insurer's state of domicile accepts a disclaimer of control or affirmatively finds that control does not exist and the disclaimer action or affirmative finding is communicated by the domiciliary commissioner to the Commissioner of this State.

(2) The acquisition of a person by another person when both persons are neither directly nor through affiliates primarily engaged in the business of insurance, if preacquisition notification is filed with the Commissioner in accordance with subdivision (c)(1) of this section 30 days prior to the proposed effective date of the acquisition or if the acquisition would otherwise be excluded from this section by any other provision of this subsection.

(3) The acquisition of already affiliated persons.

(4) An acquisition if, as an immediate result of the acquisition:

(A) in no market would the combined market share of the involved insurers exceed five percent of the total market;

(B) there would be no increase in any market share; or

(C) in no market would the combined market share of the involved insurers exceed 12 percent of the total market and the market share increase by more than two percent of the total market. For purposes of this subdivision, “market” means direct written insurance premium in this State for a line of business as contained in the annual statement required to be filed by insurers licensed to do business in this State.

(5) An acquisition for which a preacquisition notification would be required under this section due solely to the resulting effect on the ocean marine insurance line of business.

(6) An acquisition of an insurer whose domiciliary commissioner affirmatively finds that the insurer is in failing condition; there is a lack of feasible alternatives to improving such condition; the public benefits of improving the insurer's condition through the acquisition exceed the public benefits that would arise from not lessening competition; and the findings are communicated by the domiciliary commissioner to the Commissioner of this State.

(c) Preacquisition notification; waiting period. An insurer involved in an acquisition covered by subsection (b) of this section shall file a preacquisition notification with the Commissioner so that the Commissioner may determine whether the proposed acquisition, if consummated, would violate the competitive standard established under subsection (d) of this section. The Commissioner shall give confidential treatment to information submitted under this subsection in the same manner as provided in section 3687 of this chapter.

(1) The preacquisition notification shall be in such form and contain such information as prescribed by the NAIC relating to those markets that cause the acquisition to be covered under provisions of this section. The Commissioner may require such additional material and information as deemed necessary to carry out the purposes of this section. The required information may include an opinion of an economist as to the competitive impact of the acquisition in this State accompanied by a summary of the education and experience of such person indicating his or her ability to render an informed opinion.

(2) The waiting period required shall begin on the date the Commissioner receives a preacquisition notification and shall end on the earlier of the 30th day after the date of receipt or termination of the waiting period by the Commissioner. Prior to the end of the waiting period, the Commissioner on a one-time basis may require the submission of additional needed information relevant to the proposed acquisition, in which event the waiting period shall end on the earlier of the 30th day after the Commissioner receives the additional information or termination of the waiting period by the Commissioner.

(d) Competitive standard.

(1) The Commissioner may enter an order under subdivision (e)(1) of this section with respect to an acquisition if there is substantial evidence that the effect of the acquisition may be to lessen substantially competition in any line of insurance in this State or may tend to create a monopoly.

(2) In determining whether a proposed acquisition would violate the competitive standard of subdivision (1) of this subsection, the Commissioner shall consider the following:

(A) Any acquisition covered under subsection (b) of this section involving two insurers competing in the same market is prima facie evidence of violation of the competitive standard if:

(i) The market is highly concentrated and the involved insurers possess the following shares of the market:

(I) insurer A a share of four percent and insurer B a share of four percent or more;

(II) insurer A a share of 10 percent and insurer B a share of two percent or more; or

(III) insurer A a share of 15 percent and insurer B a share of one percent or more.

(ii) The market is not highly concentrated and the involved insurers possess the following shares of the market:

(I) insurer A a share of five percent and insurer B a share of five percent or more;

(II) insurer A a share of 10 percent and insurer B a share of four percent or more;

(III) insurer A a share of 15 percent and insurer B a share of three percent or more; or

(IV) insurer A a share of 19 percent and insurer B a share of one percent or more.

(B) If more than two insurers competing in the same market are involved in any acquisition covered under subsection (b) of this section, then exceeding the total of the two figures set forth for insurer A and insurer B established under subdivision (A)(i) or (ii) of this subdivision (2) is prima facie evidence of violation of the competitive standard. For purposes of this subdivision (2), the insurer with the largest share of the market shall be considered to be insurer A.

(C) Any acquisition covered under subsection (b) of this section involving two or more insurers competing in the same market is prima facie evidence of violation of the competitive standard in subdivision (1) of this subsection if:

(i) there is a significant trend toward increased concentration in the market;

(ii) one of the insurers involved is one of the insurers in a grouping of large insurers showing the requisite increase in the market share; and

(iii) another involved insurer's market is two percent or more.

(3) If an acquisition is not prima facie violative of the competitive standard under subdivisions (2)(A) through (C) of this subsection, the Commissioner may establish the requisite anticompetitive effect based upon other substantial evidence. If an acquisition is prima facie violative of the competitive standard under subdivisions (2)(A) through (C) of this subsection, a party may establish the absence of the requisite anticompetitive effect based upon other substantial evidence. Relevant factors in making a determination under this subdivision include the following: market shares, volatility of ranking of market leaders, number of competitors, concentration, trend of concentration in the industry, and ease of entry and exit into the market.

(4) The burden of showing prima facie evidence of violation of the competitive standard rests upon the Commissioner.

(5) Percentages not provided in subdivisions (2)(A) and (B) of this subsection are interpolated proportionately to the percentages that are provided.

(6) An order may not be entered under subdivision (e)(1) of this section if:

(A) the acquisition will yield substantial economies of scale or economies in resource utilization that cannot be feasibly achieved in any other way and the public benefits that would arise from such economies exceed the public benefits that would arise from not lessening competition; or

(B) the acquisition will substantially increase the availability of insurance and the public benefits of the increase exceed the public benefits that would arise from not lessening competition.

(e) Orders and penalties.

(1) If an acquisition violates the competitive standard of subsection (d) of this section or if an involved insurer fails to file adequate information in compliance with subsection (c) of this section, the Commissioner may enter an order:

(A) requiring an involved insurer to cease and desist from doing business in this State with respect to the line or lines of insurance involved in the violation; or

(B) denying the application of an acquired or acquiring insurer for a license to do business in this State.

(2) Such an order shall not be entered unless there is a hearing, notice of the hearing is issued prior to the end of the waiting period and not less than 15 days prior to the hearing, and the hearing is concluded and the order is issued no later than 60 days after the date of the filing of the preacquisition notification with the Commissioner.

(3) Every order shall be accompanied by a written decision of the Commissioner setting forth findings of fact and conclusions of law. An order under this subdivision shall not apply if the acquisition is not consummated.

(4) Any person who violates a cease and desist order of the Commissioner under subdivision (1) of this subsection and while the order is in effect may, after notice and hearing and upon order of the Commissioner, be subject to a monetary penalty of not more than $10,000.00 for every day of violation or suspension or revocation of the person's license, in the discretion of the Commissioner.

(5) Any insurer or other person who fails to make any filing required by this section and who also fails to demonstrate a good faith effort to comply with any filing requirement shall be subject to a fine of not more than $50,000.00.

(f) Subsections 3689(b) and (c) of this title (regarding voting securities) and section 3691 of this title (regarding receivership) do not apply to acquisitions covered under subsection (b) of this section.
8 V.S.A. § 1803 — VT Code / Title 8 / Chapter 65 / Section 1803
§ 1803. Determination of public good
Status: in_force

Prior to the granting of a charter to a development credit corporation, the Commissioner shall find that such grant shall promote the general good of the State.
8 V.S.A. § 3867 — VT Code / Title 8 / Chapter 105 / Section 3867
§ 3867. Proof of loss
Status: in_force

A fire insurance policy shall not be void by reason of failure to make and deliver a proof of loss to the insurer, until the insurer notifies the insured in writing to make and deliver proof of loss in accordance with the terms of the policy and the insured fails to make and deliver such proof of loss within 30 days from the time of receiving such notice. An omission or defect in such proof of loss shall not render the policy void or constitute a defense to an action thereon, unless the insurer notifies the insured thereof in writing within 10 days after receiving such proof of loss, particularly specifying in such notice all the omissions and defects in such proof of loss and the insured neglects for 30 days after receiving such notice to make and deliver a new proof of loss wherein such omissions and defects are corrected.
8 V.S.A. § 8506 — VT Code / Title 8 / Chapter 165 / Section 8506
§ 8506. Commission records and enforcement
Status: in_force

(a) The Commission shall adopt rules establishing conditions and procedures for public inspection and copying of its information and official records, except such information and records involving the privacy of individuals and insurers' trade secrets. The Commission may adopt additional rules under which it may make available to federal and state agencies, including law enforcement agencies, records and information otherwise exempt from disclosure, and may enter into agreements with such agencies to receive or exchange information or records subject to nondisclosure and confidentiality provisions.

(b) Except as to privileged records, data, and information, the laws of any compacting state pertaining to confidentiality or nondisclosure shall not relieve any compacting state commissioner of the duty to disclose any relevant records, data, or information to the Commission, provided that disclosure to the Commission shall not be deemed to waive or otherwise affect any confidentiality requirement; and further provided that, except as otherwise expressly provided in this chapter, the Commission shall not be subject to the compacting state's laws pertaining to confidentiality and nondisclosure with respect to records, data, and information in its possession. Confidential information of the Commission shall remain confidential after such information is provided to any commissioner.

(c) The Commission shall monitor compacting states for compliance with duly adopted bylaws, rules, including uniform standards, and operating procedures. The Commission shall notify any noncomplying compacting state in writing of its noncompliance with Commission bylaws, rules, or operating procedures. If a noncomplying compacting state fails to remedy its noncompliance within the time specified in the notice of noncompliance, the compacting state shall be deemed to be in default as set forth in section 8513 of this chapter.

(d) The commissioner of any state in which an insurer is authorized to do business, or is conducting the business of insurance, shall continue to exercise his or her authority to oversee the market regulation of the activities of the insurer in accordance with the provisions of the state's law. The commissioner's enforcement of compliance with the compact is governed by the following provisions:

(1) With respect to the commissioner's market regulation of a product or advertisement that is approved or certified to the Commission, the content of the product or advertisement shall not constitute a violation of the provisions, standards, or requirements of the compact except upon a final order of the Commission, issued at the request of a commissioner after prior notice to the insurer and an opportunity for hearing before the Commission.

(2) Before a commissioner may bring an action for violation of any provision, standard, or requirement of the compact relating to the content of an advertisement not approved or certified to the Commission, the Commission, or an authorized Commission officer or employee, must authorize the action. However, authorization pursuant to this subdivision does not require notice to the insurer, opportunity for hearing or disclosure of requests for authorization, or records of the Commission's action on such requests.
8 V.S.A. § 6074 — VT Code / Title 8 / Chapter 142A / Section 6074
§ 6074. Examination authority
Status: in_force

(a) The Commissioner may examine the books and records of a managing general agent or any affiliate thereof pertaining to or arising out of transactions with a risk retention group if the Commissioner reasonably believes that such examination is necessary.

(b) Subsection 6052(a) of this title shall apply to all examination reports, work 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. § 8305 — VT Code / Title 8 / Chapter 159 / Section 8305
§ 8305. Authorized control level event
Status: in_force

(a) The following are deemed to be authorized control 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 mandatory control level risk-based capital but less than its authorized control level risk-based capital.

(2) The failure of the insurer to comply with a corrective order after it is no longer subject to appeal under section 8307 of this title.

(b) Upon the occurrence of an event described in subsection (a) of this section, the Commissioner shall take such actions as he or she deems necessary to protect policyholders and creditors of the insurer, including those actions permitted under section 8304 and chapter 145 of this title. In the event the Commissioner seeks an order under chapter 145 of this title, the authorized control level event shall be deemed sufficient grounds for the Commissioner's order, and the Commissioner shall have the rights, powers, and duties with respect to the insurer as are set forth in that chapter. In the event the Commissioner takes actions under this subsection pursuant to an adjusted risk-based capital report, the insurer shall be entitled to such protections as are afforded to insurers under the provisions of section 7041 of this title pertaining to summary proceedings.