8 V.S.A. § 13303 — VT Code / Title 8 / Chapter 203 / Section 13303
§ 13303. Powers and duties of corporators and members
Status: in_force

(a) Corporators or members shall hold regular annual meetings, at a time fixed in the internal governance documents of the institution, for the purpose of electing directors of the institution and for the transaction of any other business that may properly be brought before such meeting.

(b) Special meetings of the corporators or members may be called at any time by an executive officer of the institution or in any other manner provided for in the internal governance documents.

(c) Notice of the annual meeting or any special meeting shall be given by public advertisement in a newspaper or newspapers of general circulation in the county or counties where each office of the institution is located or in such other newspapers as the Commissioner may designate, provided that corporators shall also be sent notice by mail at their last known address. The notice shall be published on at least two different days and in such manner as to be reasonably conspicuous. The last publication of notice shall be at least seven days prior to such annual or special meeting. Notice of any special meeting shall state the purpose for which such meeting is called.

(d) The internal governance documents shall prescribe the number of corporators or members that constitute a quorum at any annual or special meeting. The internal governance documents may also provide for voting by proxy.

(e) Meetings of the corporators or members shall be held at the institution's principal office, or at such other place in the area of this State served by the institution as the notice shall designate.
8 V.S.A. § 6049b — VT Code / Title 8 / Chapter 141 / Section 6049b
§ 6049b. Definitions
Status: in_force

As used in this subchapter:

(1) “Affiliated reinsurance company” means a company licensed by the Commissioner pursuant to this subchapter to reinsure risks ceded by one or more ceding insurers that are affiliated companies. Subject to the prior approval of the Commissioner, not more than 10 percent of the risks reinsured may be ceded by ceding insurers that are not affiliated companies.

(2) “Ceding insurer” means an insurance company approved by the Commissioner and licensed or otherwise authorized to transact the business of insurance or reinsurance in its state or country of domicile, which cedes risk to an affiliated reinsurance company pursuant to a reinsurance contract.

(3) “Organizational documents” means the affiliated reinsurance company's articles of incorporation and bylaws and such other documents as shall be approved by the Commissioner.

(4) “Reinsurance contract” means a contract between an affiliated reinsurance company and a ceding insurer pursuant to which the affiliated reinsurance company agrees to provide reinsurance to the ceding insurer.
8 V.S.A. § 3805 — VT Code / Title 8 / Chapter 103 / Section 3805
§ 3805. Debtor groups
Status: in_force

The lives of a group of individuals may be insured under a policy issued to a creditor or to the trustees of a fund established by one or more creditors, which creditor or trustees shall be deemed the policyholder, to insure debtors of the creditor or creditors subject to the following requirements:

(1) The debtors eligible for insurance under the policy shall be all of the debtors of the creditor or creditors or all of any class or classes thereof determined by conditions pertaining to the indebtedness or to the purchase giving rise to the indebtedness. The policy may provide that the term “debtors” shall include the debtors of one or more subsidiary corporations, and the debtors of one or more affiliated corporations, proprietors, or partnerships if the business of the policyholder and of such affiliated corporations, proprietors, or partnerships, is under common control through stock ownership, contract, or otherwise.

(2) The premium for the policy shall be paid by the policyholder, either from the creditor's or creditors' funds, or from charges collected from the insured debtors, or from both. A policy on which part or all of the premium is to be derived from the collection from the insured debtors of identifiable charges not required of uninsured debtors shall not include, in the class or classes of debtors eligible for insurance, debtors under obligations outstanding at its date of issue without evidence of individual insurability unless at least 75 percent of the then eligible debtors elect to pay the required charges. A policy on which no part of the premium is to be derived from the collection of such identifiable charges must insure all eligible debtors, or all except any as to whom evidence of individual insurability is not satisfactory to the insurer.

(3) The policy may be issued only if the group of eligible debtors is then receiving new entrants at the rate of at least 100 persons yearly, or may reasonably be expected to receive at least 100 new entrants during the first policy year, and only if the policy reserves to the insurer the right to require evidence of individual insurability if less than 75 percent of the new entrants become insured. The policy may exclude from the classes eligible for insurance classes of debtors determined by age.

(4) The amount of insurance on the life of any debtor shall at no time exceed the amount owed to the creditor, or creditors or $70,000.00, whichever is less, except that the amount of such insurance on the life of a debtor who has secured a debt by a mortgage on real estate shall at no time exceed $140,000.00, or the amount owed, whichever is less. Where the insurance is in connection with an educational or agricultural credit transaction commitment, the amount owed by the debtor to any creditor may be deemed to include the portion of the loan commitment that has not been advanced by the creditor.

(5) The insurance shall be payable to the policyholder or creditor. Such payment shall reduce or extinguish the unpaid indebtedness of the debtor to the extent of such payment.
8 V.S.A. § 2922 — VT Code / Title 8 / Chapter 85 / Section 2922
§ 2922. Prohibited acts and practices
Status: in_force

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

(1) directly or indirectly employ any scheme, device, or artifice to defraud or mislead borrowers or lenders or to defraud any person;

(2) engage in any unfair or deceptive practice toward any person;

(3) obtain property by fraud or misrepresentation;

(4) use any unfair or unconscionable means in servicing a loan;

(5) knowingly misapply or recklessly apply loan payments to the outstanding balance of a loan;

(6) knowingly misapply or recklessly apply payments to escrow accounts;

(7) require the unnecessary forced placement of insurance, when adequate insurance is currently in place;

(8) fail to provide loan payoff information within the time period set forth in 27 V.S.A. § 464;

(9) charge excessive or unreasonable fees to provide loan payoff information;

(10) fail to manage and maintain escrow accounts in accordance with section 10404 of this title;

(11) knowingly or recklessly provide inaccurate information to a credit bureau, thereby harming a consumer's creditworthiness;

(12) fail to report both the favorable and unfavorable payment history of the consumer to a nationally recognized consumer credit bureau at least annually if the servicer regularly reports information to a credit bureau.;

(13) collect private mortgage insurance beyond the date for which private mortgage insurance is no longer required;

(14) knowingly or recklessly facilitate the illegal foreclosure of real property collateral;

(15) knowingly or recklessly facilitate the illegal repossession of chattel collateral;

(16) fail to respond to consumer complaints in a timely manner;

(17) conduct any business covered by this chapter without holding a valid license as required under this chapter, or assist or aid and abet any person in the conduct of business under this chapter without a valid license as required under this chapter;

(18) fail to comply with any federal or state law, rule, or other legally binding authority relating to the evaluation of loans for modification purposes or the modification of loans;

(19) fail to comply with this chapter or rules adopted under this chapter, or fail to comply with any orders or directives from the Commissioner, or fail to comply with any other state or federal law, including the rules thereunder, applicable to any business authorized or conducted under this chapter.

(b) A violation of this section is an unfair and deceptive act or practice under 9 V.S.A. § 2453, provided that the Commissioner's determinations concerning the interpretation and administration of the provisions of this chapter and any rules adopted thereunder shall carry a presumption of validity. Prior to initiating an action for a violation of this chapter, the Attorney General shall consult with the Commissioner regarding the proposed action.
8 V.S.A. § 2753 — VT Code / Title 8 / Chapter 83 / Section 2753
§ 2753. Application for license; additional information
Status: in_force

(a) In addition to the information required by section 2102 of this title, an application for a license under this chapter shall state or contain:

(1) A description of any debt adjustment and related services previously provided by the applicant.

(2) The debt adjustment and related services that the applicant seeks to provide in this State.

(3) A description of how the applicant will market its services, along with copies of all scripts, mailings, advertisements, and other marketing materials, provided that submission of these materials shall not waive any legal claim the State may have with respect to the content or use of the materials.

(4) A description of the nature and amount of the fees, or the method of calculating the fees, charged to the debtor.

(5) A list of the applicant's locations in this State and outside this State where the applicant proposes to engage Vermont residents in debt adjustment services.

(6) A list of other states in which the applicant is licensed to engage in debt adjustment services and information concerning any bankruptcy or receivership proceedings affecting the licensee, and any license revocations, suspensions, or criminal or disciplinary action taken against the applicant in other states.

(7) A blank copy of the contract the applicant intends to use. The applicant shall notify the Commissioner of all changes and amendments thereto. The terms and conditions of all contracts shall be subject to prior approval by the Commissioner.

(8) The name and address of the federally insured financial institution through which the applicant maintains a separate account for the benefit of debtors.

(b) The Commissioner may waive one or more requirements of this section or permit an applicant to submit substituted information in lieu of the required information.
8 V.S.A. § 4800a — VT Code / Title 8 / Chapter 131 / Section 4800a
§ 4800a. Continuing education
Status: repealed

(a) An applicant for an insurance producer license renewal shall demonstrate satisfactory completion of 24 hours of continuing education during the preceding two years.

(b) The Commissioner shall adopt such rules as are needed to carry out the purposes of this section. Such rules shall include:

(1) a process for the formation and operation of an advisory council of insurance professionals and consumers to advise the Commissioner on matters relating to continuing education;

(2) a process for the approval of courses;

(3) a process for the approval of course providers;

(4) standards for courses; and

(5) procedures for documenting satisfactory completion of courses.

(c) For good cause shown, the Commissioner may extend for no longer than six months the period of time for completion of the educational requirements of this section.

(d) This section shall not apply to a nonresident insurance producer who resides in a state or district that has a continuing education requirement and who has satisfied such requirement and submits adequate documentation of continuing education completion to the Commissioner.

(e) The license of an applicant who has failed to satisfy the continuing education requirements of this section, and who has not been granted an extension of time as set forth in subsection (c) of this section, shall not be renewed.

(f) The Commissioner shall suspend the license of any applicant who, after receiving an extension of time as set forth in subsection (c) of this section, has not satisfactorily completed the continuing education requirement.

(g) The Commissioner may contract with an outside vendor to administer continuing education requirements, including approval of courses and course providers; collection and maintenance of insurance producer record-keeping; and compliance monitoring. The costs of an outside vendor shall be borne by applicants for insurance producer license renewal and by course providers through fees imposed by the outside vendor. All fees charged by the outside vendor will be subject to the prior approval of the Commissioner and may be payable to the outside vendor, notwithstanding 32 V.S.A. § 502(a).

(h) [Repealed.]
8 V.S.A. § 2533 — VT Code / Title 8 / Chapter 79 / Section 2533
§ 2533. Change of authorized delegate
Status: in_force

A licensee shall notify the Commissioner in writing within 30 days after any change in the list of authorized delegates, identifying the name and street address of each new authorized delegate and of each removed authorized delegate.
8 V.S.A. § 4205 — VT Code / Title 8 / Chapter 113 / Section 4205
§ 4205. Effect of false statement in application
Status: in_force

The falsity of a statement in the application for a policy covered by the provisions of this chapter shall not bar the right to recovery under the policy unless such false statement was made with actual intent to deceive or unless it materially affected either the acceptance of the risk or the hazard assumed by insurer.
8 V.S.A. § 19206 — VT Code / Title 8 / Chapter 209 / Section 19206
§ 19206. Expenses; salary
Status: in_force

All expenses of any such conservatorship shall be paid out of the assets of the financial institution and shall be a lien thereon that shall be prior to any other lien provided by law. The conservator shall receive as salary an amount to be fixed by the Governor.
8 V.S.A. § 3621 — VT Code / Title 8 / Chapter 101 / Section 3621
§ 3621. Examination of Association
Status: in_force

The Association shall be subject to examination and regulation by the Commissioner. The Board of Directors shall submit, not later than March 30 of each year, a financial report for the preceding calendar year in a form approved by the Commissioner.
8 V.S.A. § 2907 — VT Code / Title 8 / Chapter 85 / Section 2907
§ 2907. Additional bond
Status: in_force

If the Commissioner finds at any time that a licensee's bond is insecure, exhausted, insufficient, or otherwise doubtful, the Commissioner shall require one or more additional bonds meeting the standards set forth in section 2903 of this chapter. The licensee shall file the bond within 10 days of the Commissioner's written demand to do so.
8 V.S.A. § 3791a — VT Code / Title 8 / Chapter 103 / Section 3791a
§ 3791a. Definitions
Status: in_force

As used in this subchapter:

(1) “Accident and health insurance” means contracts that incorporate morbidity risk and provide protection against economic loss resulting from accident, sickness, or medical conditions and as may be specified in the Valuation Manual.

(2) “Appointed actuary” means a qualified actuary who is appointed in accordance with the Valuation Manual to prepare the actuarial opinion required in subsection 3791c(b) of this subchapter.

(3) “Company” means an entity that:

(A) has written, issued, or reinsured life insurance contracts, accident and health insurance contracts, or deposit-type contracts in this State and has at least one such policy in force or on claim; or

(B) has written, issued, or reinsured life insurance contracts, accident and health insurance contracts, or deposit-type contracts in any state and is required to hold a certificate of authority to write life insurance, accident and health insurance, or deposit-type contracts in this State.

(4) “Deposit-type contract” means contracts that do not incorporate mortality or morbidity risks and as may be specified in the Valuation Manual.

(5) “Life insurance” means contracts that incorporate mortality risk, including annuity and pure endowment contracts, and as may be specified in the Valuation Manual.

(6) “NAIC” means the National Association of Insurance Commissioners.

(7) “Policyholder behavior” means any action a policyholder, contract holder, or any other person with the right to elect options, such as a certificate holder, may take under a policy or contract subject to this subchapter, including lapse, withdrawal, transfer, deposit, premium payment, loan, annuitization, or benefit elections prescribed by the policy or contract but excluding events of mortality or morbidity that result in benefits prescribed in their essential aspects by the terms of the policy or contract.

(8) “Principle-based valuation” means a reserve valuation that uses one or more methods or one or more assumptions determined by the insurer and is required to comply with section 3791o of this subchapter as specified in the Valuation Manual.

(9) “Qualified actuary” means an individual who is qualified to sign the applicable statement of actuarial opinion in accordance with the American Academy of Actuaries qualification standards for actuaries signing such statements and who meets the requirements specified in the Valuation Manual.

(10) “Tail risk” means a risk that occurs either where the frequency of low probability events is higher than expected under a normal probability distribution or where there are observed events of very significant size or magnitude.

(11) “Valuation Manual” means the manual of valuation instructions adopted by the NAIC as specified in this subchapter or as subsequently amended.
8 V.S.A. § 4256 — VT Code / Title 8 / Chapter 113 / Section 4256
§ 4256. Exemption for certain delivery service maintenance and repair contracts
Status: in_force

The provisions of this subchapter shall not apply to service contracts with a duration of one year or less where the provider also has an existing agreement to supply liquid fuel used in the course of normal operation of the property subject to the service contract.
8 V.S.A. § 4793 — VT Code / Title 8 / Chapter 131 / Section 4793
§ 4793. General license requirements
Status: in_force

(a) No person, partnership, association, or corporation shall act as or hold himself or herself out to be an insurance producer, surplus lines insurance broker, managing general agent, reinsurance intermediary, limited lines producer, consultant, insurance adjuster, or insurance appraiser unless duly licensed.

(b) No insurance producer, surplus lines insurance broker, or limited lines producer shall make application for, procure, negotiate for, or place for others, any lines of insurance as to which he or she is not then qualified and duly licensed.

(c) No person shall investigate or negotiate settlement of any claim arising under 21 V.S.A. chapters 9 and 11 unless the person is licensed as a workers' compensation adjuster under this subchapter.
8 V.S.A. § 14209 — VT Code / Title 8 / Chapter 204 / Section 14209
§ 14209. Examination of accounts
Status: in_force

Each Vermont financial institution shall annually cause a sampling of its loans and deposit accounts to be verified by the account holder. The verification shall be under the direction of an outside auditor or the internal auditor of the Vermont financial institution. The auditor shall report the results directly to the governing body. The verification methodology and results shall be available to the Commissioner upon request.
8 V.S.A. § 2402 — VT Code / Title 8 / Chapter 77 / Section 2402
§ 2402. Authority to organize; powers; limitations; prohibitions; exemptions
Status: in_force

(a) A company organized in this State may form an independent trust company in accordance with the provisions of this chapter. A company shall obtain a certificate of authority from the Commissioner before it may act as a fiduciary or engage in a trust business in this State.

(b) An independent trust company formed and authorized under this chapter shall have the same fiduciary powers, duties, and obligation as a financial institution operating a trust department under subchapter 4 of chapter 204 of this title. An independent trust company formed under this title shall have the privileges and be subject to the provisions granted or contained in the general law governing the company and in this chapter, except where the general law governing the company is inconsistent with this chapter. In case of conflict between the general law governing the company and this chapter, this chapter shall control. Such companies shall not be required to make any annual report except as provided in this chapter. Except as provided in this chapter, subchapter 4 of chapter 204, and section 12602 of this title, no person shall engage in a trust business in this State without first obtaining a certificate of authority from the Commissioner.

(c) An independent trust company shall not accept deposits or make loans or conduct any other business except that which is incidental to and consistent with a trust business.

(d) An independent trust company may prudently invest its capital and surplus in stocks, bonds, mortgages, mutual funds, and other securities. An independent trust company may invest in, purchase, hold, convey, and lease real estate.

(e) An independent trust company may issue or sell capital notes or debentures with the written approval of the Commissioner.

(f) An independent trust company formed and authorized under this chapter shall:

(1) maintain its principal place of business in this State;

(2) appoint a registered agent to accept service of process and to otherwise act on its behalf in this State, provided that whenever such registered agent cannot with reasonable diligence be found at the Vermont registered office of the independent trust company, the Secretary of State shall be an agent of such independent trust company upon whom any process, notice, or demand may be served;

(3) hold at least four meetings of its governing body each year, including once quarterly, and at least one such meeting each year shall be held in Vermont; and

(4) have at least one Vermont resident as a member of its governing body.

(g) For the purposes of this chapter, a person does not engage in a trust business merely by:

(1) rendering services as an attorney-at-law or an accountant;

(2) acting as trustee under a deed of trust made only as security for the payment of money or for the performance of another act;

(3) acting as a trustee in bankruptcy or as a receiver;

(4) holding trusts of real estate for the primary purpose of subdivision, development, or sale, or to facilitate any business transaction with respect to such real estate, provided the person is not regularly engaged in the business of acting as a trustee for such trusts;

(5) holding assets as trustee of trusts created for charitable purposes;

(6) receiving rents and proceeds of sale as a licensed real estate broker on behalf of a principal;

(7) engaging in securities transactions as a broker-dealer or a sales representative registered under 9 V.S.A. chapter 131;

(8) engaging in the sale of insurance policies and annuity or endowment contracts in this State issued by an insurance company authorized to write such policies or contracts and subject to regulation and control of the Commissioner;

(9) if an individual, acting as a guardian, conservator, special conservator, trustee, or personal representative pursuant to a court order or other statutory authority;

(10) acting under the authority of 11A V.S.A. § 15.01(d); or

(11) if an individual, serving as trustee of any of the following:

(A) one or more trusts for each of which at least one settlor is a member of the trustee's family; or

(B) not more than five trusts if the individual has not solicited appointment as trustee for any trusteeships.
8 V.S.A. § 3368a — VT Code / Title 8 / Chapter 101 / Section 3368a
§ 3368a. Unauthorized and misleading transactions
Status: in_force

(a) No person shall transact insurance business in this State unless the Commissioner has issued a license or certificate of authority to such person as required by section 3361 or 3368 of this title, or by chapters 123, 125, and 139 of this title. The provisions of this section shall not apply to an insurer licensed in this State or in any foreign or alien jurisdiction who is subject to section 3368 of this title.

(b) No person shall act as an officer, director, or controlling person for a person who is engaged in a violation of subsection (a) of this section. As used in this subsection, “controlling” is defined by subdivision 3681(3) of this title.

(c) No person shall directly or indirectly represent or aid a person in violating subsection (a) of this section.

(d)(1) No person shall use in its advertisements or other marketing materials or communications the term “insurance” or any other term in a manner that could reasonably lead a person into believing that the product marketed, offered, or issued is insurance, unless such person is authorized under this title to transact the business of insurance.

(2) No person shall use in its advertisements or other marketing materials or communications the terms “health plan,” “coverage,” “co-pay,” “co-payments,” “deductible,” “preexisting conditions,” “guaranteed issue,” “premium,” “enrollment,” “preferred provider organization,” or any other term in a manner that could reasonably mislead an individual into believing that the product marketed, offered, or issued is health insurance, unless such person is authorized under this title to transact the business of health insurance.

(e) In addition to any other remedies or penalties provided by law:

(1) For each violation of the provisions of subsection (a), (b), or (c) of this section a person shall be imprisoned not more than five years or fined not more than $10,000.00, or both.

(2) For each violation of the provisions of subsection (d) of this section a person shall be imprisoned not more than two years or fined not more than $5,000.00, or both.
8 V.S.A. § 19302 — VT Code / Title 8 / Chapter 209 / Section 19302
§ 19302. Appointment of receiver; notice and hearing
Status: in_force

The court shall issue a notice to the treasurer and executive officer of such Vermont financial institution to appear at a time and place named in the notice and show cause why a receiver should not be appointed. If sufficient cause is not shown, the court shall appoint a receiver to take charge of the property and effects of the financial institution, who shall be subject to the Superior Court.
8 V.S.A. § 31106 — VT Code / Title 8 / Chapter 221 / Section 31106
§ 31106. Certificate to commence business; insurance; bond
Status: in_force

(a) Upon receipt of the statement required in subsection 31105(b) of this title, the Commissioner shall cause an examination to be made to determine if the minimum share deposits have been credited to the account of the credit union, and that all requirements of this section and other provisions of law have been met.

(b) Upon completion of the examination, and if it appears to the Commissioner that the whole of the required share deposits has been paid in, the Commissioner shall issue a certificate under seal authorizing the credit union to commence business, and this certificate shall be filed with the Secretary of State.

(c) The certificate of authority to commence business shall be conclusive of the facts stated in the certificate, and it shall be unlawful for any credit union to begin transacting business until a certificate of authority to commence business has been granted.

The certificate of authority to commence business shall be conclusive of the facts stated therein, and it shall be unlawful for any credit union to begin transacting business until a certificate of authority to commence business has been granted.

(d) A credit union shall not commence business until its shares and deposits are insured by the National Credit Union Administration (NCUA) or its successor agency as required by section 31601 of this title.

(e) A credit union shall not commence business until it has acquired such bonds and insurance as required by section 31602 of this title.

(f) In the case of a violation of this provision, the officers and directors assenting to the activity shall be personally liable for all debts incurred before the certificate is issued and filed.
8 V.S.A. § 6048i — VT Code / Title 8 / Chapter 141 / Section 6048i
§ 6048i. Permitted reinsurance
Status: in_force

(a) A special purpose financial insurance company may reinsure only the risks of a ceding insurer, pursuant to a reinsurance contract. A special purpose financial insurance company may not issue a contract of insurance or a contract for assumption of risk or indemnification of loss other than such reinsurance contract.

(b) Unless otherwise approved in advance by the Commissioner, a special purpose financial insurance company may not assume or retain exposure to insurance or reinsurance losses for its own account that are not funded by:

(1) proceeds from a special purpose financial insurance company securitization or letters of credit or other assets described in subdivision 6048c(3) of this chapter;

(2) premium and other amounts payable by the ceding insurer to the special purpose financial insurance company pursuant to the reinsurance contract; and

(3) any return on investment of the items in subdivisions (1) and (2) of this subsection.

(c) The reinsurance contract shall contain all provisions reasonably required or approved by the Commissioner, which requirements shall take into account the laws applicable to the ceding insurer regarding the ceding insurer taking credit for the reinsurance provided under such reinsurance contract.

(d) A special purpose financial insurance company may cede risks assumed through a reinsurance contract to one or more reinsurers through the purchase of reinsurance, subject to the prior approval of the Commissioner.

(e) A special purpose financial insurance company may enter into contracts and conduct other commercial activities related or incidental to and necessary to fulfill the purposes of the reinsurance contract, the insurance securitization, and this subchapter, provided such contracts and activities are included in the special purpose financial insurance company's plan of operation or are otherwise approved in advance by the Commissioner. Such contracts and activities may include: entering into reinsurance contracts; issuing special purpose financial insurance company securities; complying with the terms of these contracts or securities; entering into trust, guaranteed investment contract, swap, or other derivative, tax, administration, reimbursement, or fiscal agent transactions; complying with trust indenture, reinsurance, or retrocession; and other agreements necessary or incidental to effect an insurance securitization in compliance with this subchapter and the special purpose financial insurance company's plan of operation.

(f) Unless otherwise approved in advance by the Commissioner, a reinsurance contract shall not contain any provision for payment by the special purpose financial insurance company in discharge of its obligations under the reinsurance contract to any person other than the ceding insurer or any receiver of the ceding insurer.

(g) A special purpose financial insurance company shall notify the Commissioner immediately of any action by a ceding insurer or any other person to foreclose on or otherwise take possession of collateral provided by the special purpose financial insurance company to secure any obligation of the special purpose financial insurance company.
8 V.S.A. § 8012 — VT Code / Title 8 / Chapter 151 / Section 8012
§ 8012. Enforcement
Status: in_force

(a) The Commissioner may, after notice and an opportunity for hearing, impose an administrative penalty of not more than $15,000.00 against any person who violates a provision of this chapter. The hearing before the Commissioner shall be a contested case subject to the provisions of 3 V.S.A. chapter 25.

(b) A provider who violates a provision of this chapter shall be subject to a fine not to exceed $15,000.00 or imprisonment for a period not to exceed one year, or both.

(c) The Department, or the Attorney General at the request of the Department, may bring an action to enforce the provisions of this chapter in the Superior Court. The court may grant temporary and permanent injunctive relief and may exercise all the powers available to it.
8 V.S.A. § 3765 — VT Code / Title 8 / Chapter 103 / Section 3765
§ 3765. Calculation of adjusted premiums
Status: in_force

(a)(1) This section shall not apply to policies issued on or after the operative date of section 3768 of this subchapter. Except as provided in subsection (c) of this section, the adjusted premiums for any policy shall be calculated on an annual basis and shall be such uniform percentage of the respective premiums specified in the policy for each policy year, excluding amounts stated in the policy as extra premiums to cover impairments or special hazards, that the present value, at the date of issue of the policy, of all such adjusted premiums shall be equal to the sum of:

(A) the then present value of the future guaranteed benefits provided for by the policy;

(B) two percent of the amount of insurance, if the insurance be uniform in amount, or of the equivalent uniform amount, as hereinafter defined, if the amount of insurance varies with duration of the policy;

(C) 40 percent of the adjusted premium for the first policy year; and

(D) 25 percent of either the adjusted premium for the first policy year or the adjusted premium for a whole life policy of the same uniform or equivalent uniform amount with uniform premiums for the whole of life issued at the same age for the same amount of insurance, whichever is less.

(2) In applying the percentages specified in subdivisions (1)(C) and (D) of this subsection, no adjusted premium shall be deemed to exceed four percent of the amount of insurance or level amount equivalent. The date of issue of a policy for the purpose of this section shall be the date as of which the rated age of the insured is determined.

(b) In the case of a policy providing an amount of insurance varying with duration of the policy, the equivalent level amount for the purpose of this section shall be deemed to be the level amount of insurance provided by an otherwise similar policy, containing the same endowment benefit or benefits, if any, issued at the same age and for the same term, the amount of which does not vary with duration and the benefits under which have the same present value at the inception of the insurance as the benefits under the policy.

(c)(1) The adjusted premiums for any policy providing term insurance benefits by rider or supplemental policy provision shall be equal to:

(A) the adjusted premiums for an otherwise similar policy issued at the same age without such term insurance benefits, increased, during the period for which premiums for such term insurance benefits are payable; by

(B) the adjusted premiums for such term insurance.

(2) Subdivisions (1)(A) and (B) of this subsection shall be calculated separately except that, for purposes of subdivisions (a)(1)(B)-(D) of this section, the amount of insurance or equivalent uniform amount of insurance used in the calculation of the adjusted premiums referred to in subdivision (a)(1)(B) of this section shall be equal to the excess of the corresponding amount determined for the entire policy over the amount used in the calculation of the adjusted premiums in subdivision (1) of this subsection (c).

(d) Except as otherwise provided in sections 3766 and 3767 of this subchapter, all adjusted premiums and present values referred to in this subchapter shall for all policies of ordinary insurance be calculated on the basis of the Commissioners' 1941 Standard Ordinary Mortality Table, provided that for any category of ordinary insurance issued on female risks, adjusted premiums and present values may be calculated according to any age not more than three years younger than the actual age of the insured and such calculations for all policies of industrial insurance shall be made on the basis of the 1941 Standard Industrial Mortality Table. All calculations shall be made on the basis of the rate of interest, not exceeding three and one-half percent per annum, specified in the policy for calculating cash surrender values and paid-up nonforfeiture benefits. Provided, however, that in calculating the present value of any paid-up term insurance with accompanying pure endowment, if any, offered as a nonforfeiture benefit, the rates of mortality assumed may be not more than 130 percent of the rates of mortality according to the applicable table. Provided, further, that for insurance issued on a substandard basis, the calculation of any adjusted premiums and present values may be based on such other table of mortality as may be specified by the company and approved by the Commissioner.
8 V.S.A. § 3690 — VT Code / Title 8 / Chapter 101 / Section 3690
§ 3690. Sanctions
Status: in_force

(a) Any insurer failing, without just cause, to file any registration statement as required in this subchapter shall be required, after notice and hearing, to pay a penalty of not more than $1,000.00 for each day's delay, to be recovered by the Commissioner of Financial Regulation, and the penalty so recovered shall be paid into the General Revenue Fund of this State. The maximum penalty under this section is $150,000.00. The Commissioner may reduce the penalty if the insurer demonstrates to the Commissioner that the imposition of the penalty would constitute a financial hardship to the insurer.

(b) Every director or officer of an insurance holding company system who knowingly violates, participates in, or assents to, or who knowingly shall permit any of the officers or agents of the insurer to engage in transactions or make investments that have not been properly reported or submitted pursuant to subsection 3684(a), 3685(c), or 3685(f) of this subchapter, or which violate this subchapter, shall pay, in their individual capacity, an administrative penalty of not more than $5,000.00 per violation, after notice and hearing before the Commissioner. In determining the amount of the penalty, the Commissioner shall take into account the appropriateness of the penalty with respect to the gravity of the violation, the history of previous violations, and such other matters as justice may require.

(c) Whenever it appears to the Commissioner that any insurer subject to this subchapter or any director, officer, employee, or agent thereof has engaged in any transaction or entered into a contract that is subject to section 3685 of this subchapter and that would not have been approved had such approval been requested, the Commissioner may order the insurer to cease and desist immediately any further activity under that transaction or contract. After notice and hearing, the Commissioner may also order the insurer to void any such contracts and restore the status quo if such action is in the best interest of the policyholders, creditors, or the public.

(d) Any person who willfully violates any section of this subchapter shall be fined not more than $25,000.00 or imprisoned not more than three years, or both.

(e) Any insurer, officer, director, or employee of an insurance holding company system who willfully subscribes to, makes, or causes to be made any false statement, report, or filing under this subchapter shall be imprisoned for not more than three years or fined not more than $25,000.00, or both. Any fines imposed shall be paid by the officer, director, or employee in his or her individual capacity.

(f) Whenever it appears to the Commissioner that any person has committed a violation of section 3681 of this chapter that prevents the full understanding of the enterprise risk to the insurer by affiliates or by the insurance holding company system, the violation may serve as an independent basis for disapproving dividends or distributions and for placing the insurer under an order of supervision under section 7041 of this title.
8 V.S.A. § 10404 — VT Code / Title 8 / Chapter 200 / Section 10404
§ 10404. Home loan escrow accounts
Status: in_force

(a) As used in this section:

(1) “Borrower” means one or more natural persons who are obligated to make escrow account payments under the terms of a loan agreement secured by residential real estate occupied by the borrower.

(2) “Escrow account” means an account into which a borrower is required under the terms of a residential real estate loan agreement to make periodic payments of property taxes, insurance premiums, or other similar charges.

(3) “Lender” means a person who services or holds the beneficial interest in a loan secured by residential real estate located in this State and who requires periodic payments by a borrower into an escrow account in accordance with the provisions of a residential real estate loan agreement.

(b) A lender shall pay into an escrow account for the benefit of the borrower interest on funds deposited into the account under the same conditions as the lender's regular savings account, if offered, and otherwise at a rate not less than the prevailing market rate of interest for regular savings accounts offered by local financial institutions, calculated on the basis of the average monthly balance in the account and credited on the first day of each quarter. This subsection shall not apply when a lender requires payment into an escrow account because a borrower has failed, within the past year, to make timely payments for property taxes and insurance in accordance with the provisions of the loan agreement.

(c) A lender shall not require a borrower to deposit into an escrow account any greater sum than is sufficient to pay taxes, insurance premiums, and other charges with respect to the residential real estate, subject to the following additional charges:

(1) a lender may require aggregate annual deposits no greater than the reasonably estimated total annual charges plus one-sixth of such total; and

(2) a lender may require monthly deposits no greater than one-twelfth of the reasonably estimated total annual charges plus an amount needed to maintain an additional account balance no greater than one-sixth of such total.

(d) A lender shall make timely payments of all charges with respect to the residential real estate payable from the escrow account.

(e) The lender shall maintain escrow account funds in a federally insured depository institution.

(f) With respect to borrowers who have maintained escrow accounts in accordance with the provisions of the loan agreement, the lender shall be primarily obligated for the payment of any municipal or county taxes, insurance premiums, or other similar charges with respect to the residential real estate, and any penalties attributable to the lender's late payment of such charges.

(g)(1) At least annually, at the completion of the escrow account computation year, a lender shall conduct an escrow account analysis to determine the borrower's monthly escrow account payments for the next computation year based on the borrower's current tax liability, if made available to the lender either by the borrower or the municipality, after any applicable adjustment for a State credit on property taxes.

(2) Upon receipt of a revised property tax bill, the lender shall review the property tax bill and, upon verifying that it has been reduced since the date of the last escrow account analysis, the lender shall, within 30 days of receiving the bill, conduct a new escrow account analysis, recalculate the borrower's monthly escrow payment, and notify the borrower of any change.

(3) At least annually, and whenever an escrow account analysis is conducted or upon request of the borrower, the lender shall provide to the borrower financial statements relating to the borrower's escrow account in a manner and on a form consistent with the federal Real Estate Settlement Procedures Act. The lender shall not charge the borrower for the preparation and transmittal of such statements.

(h) A borrower aggrieved by a violation of the provisions of this section, or a rule adopted by the Commissioner in connection with this section, may bring an action for injunctive relief, three times the amount of any interest unpaid in violation of this section, other damages, costs, and reasonable attorney's fees. The Commissioner may bring an action in the Superior Court of Washington County for injunctive relief, restitution, and any administrative costs and attorney's fees incurred as a result of a violation of this section.
8 V.S.A. § 6011 — VT Code / Title 8 / Chapter 141 / Section 6011
§ 6011. Reinsurance
Status: in_force

(a) Any captive insurance company may provide reinsurance of policies approved by the Commissioner comprised in section 3301 of this title, on risks of its parent, affiliated companies, and controlled unaffiliated business ceded by any other insurer, and may provide reinsurance of annuity contracts as defined in section 3717 of this title that are granted by any other insurer.

(b) Any captive insurance company may take credit for the reinsurance of risks or portions of risks ceded to reinsurers complying with the provisions of subsections 3634a(a) through (e) of this title. Prior approval of the Commissioner shall be required for ceding or taking credit for the reinsurance of risks or portions of risks ceded to reinsurers not complying with subsections 3634a(a) through (e) of this title.

(c) In addition to reinsurers authorized under the provisions of section 3634a of this title, a captive insurance company may take credit for the reinsurance of risks or portions of risks ceded to a pool, exchange, or association acting as a reinsurer that has been authorized by the Commissioner. The Commissioner may require any other documents, financial information, or other evidence that such a pool, exchange, or association will be able to provide adequate security for its financial obligations. The Commissioner may deny authorization or impose any limitations on the activities of a reinsurance pool, exchange, or association that, in the Commissioner's judgment, are necessary and proper to provide adequate security for the ceding captive insurance company and for the protection and consequent benefit of the public at large.

(d) For all purposes of this chapter, insurance by a captive insurance company of any workers' compensation qualified self-insured plan of its parent and affiliates shall be deemed to be reinsurance.
8 V.S.A. § 7151 — VT Code / Title 8 / Chapter 149 / Section 7151
§ 7151. Short title
Status: in_force

This chapter shall be known and may be cited as the “Pet Insurance Act.”
8 V.S.A. § 32209 — VT Code / Title 8 / Chapter 222 / Section 32209
§ 32209. Claims not clearly consistent
Status: in_force

The provisions of section 14211 of this title governing claims not clearly consistent with the terms of any applicable authority on file with the credit union 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. § 2555 — VT Code / Title 8 / Chapter 79 / Section 2555
§ 2555. Conservation, liquidation, and insolvency
Status: in_force

To the extent applicable, the provisions of subchapters 2, 3, and 4 of chapter 209 of this title, excluding sections 19207, 19208, 19210, 19306, and 19307 of this title, shall apply to the conservation, liquidation, and insolvency of any licensee under this chapter. Such licensee shall be treated as a financial institution for the purposes of application of those subchapters. If an impaired or insolvent licensee is or becomes a debtor in bankruptcy or the subject of a bankruptcy proceeding under federal law, the Commissioner shall be relieved of any obligation otherwise imposed under this section and subchapters 2, 3, and 4 of chapter 209 of this title, and shall relinquish control of the assets and estate of such debtor to the duly appointed trustee in bankruptcy or the debtor in possession, as the case may be.
8 V.S.A. § 19406 — VT Code / Title 8 / Chapter 209 / Section 19406
§ 19406. Orders under which financial institution may continue business
Status: in_force

Those orders shall provide that deposits received after the petition is filed and before the final decree shall be kept in cash or invested in such liquid securities as the Commissioner shall approve and segregated from the prior assets of the financial institution and shall constitute a fund for the repayment in full of deposits made after the filing of the petition. Those orders shall further provide that no withdrawal of prior deposits may be permitted except on such notice and to such specified amounts and in such specified percentage as the Commissioner determines clearly will not result in a preference.
8 V.S.A. § 5023a — VT Code / Title 8 / Chapter 138 / Section 5023a
§ 5023a. Domestic surplus lines insurer; authorized
Status: in_force

(a) Surplus lines insurance may be procured from a domestic surplus lines insurer if all of the following criteria are met:

(1) The board of directors of the insurer has adopted a resolution seeking certification as a domestic surplus lines insurer and the Commissioner has approved such certification.

(2) The insurer is already eligible to offer surplus lines insurance in at least one other state besides Vermont.

(3) The insurer meets the requirements of section 5026 of this title.

(4) All other requirements of this chapter are met.

(b) The requirements of 8 V.S.A. § 80 shall not apply to domestic surplus lines insurers. A domestic surplus lines insurer shall be deemed to be a non-admitted insurer for purposes of chapter 138 of this title.
8 V.S.A. § 4834 — VT Code / Title 8 / Chapter 132 / Section 4834
§ 4834. Name; suits
Status: in_force

A reciprocal insurer shall:

(1) Have and use a business name. The name shall include the word “reciprocal,” or “interinsurer,” or “interinsurance,” or “exchange,” or “underwriters,” or “underwriting,” or “association.”

(2) Sue and be sued in its own name.
8 V.S.A. § 10201 — VT Code / Title 8 / Chapter 200 / Section 10201
§ 10201. Statement of policy on financial privacy
Status: in_force

It is the policy of this State to protect the privacy of customers of financial institutions without unduly inhibiting the free flow of commerce or legitimate law enforcement activities.
8 V.S.A. § 6048j — VT Code / Title 8 / Chapter 141 / Section 6048j
§ 6048j. Disposition of assets; investments
Status: in_force

(a) The assets of a special purpose financial insurance company shall be preserved and administered by or on behalf of the special purpose financial insurance company to satisfy the liabilities and obligations of the special purpose financial insurance company incident to the reinsurance contract, the insurance securitization, and other related agreements.

(b) In the special purpose financial insurance company securitization, the security offering memorandum or other document issued to prospective investors regarding the offer and sale of a surplus note or other security shall include a disclosure that all or part of the proceeds of such insurance securitization will be used to fund the special purpose financial insurance company's obligations to the ceding insurer.

(c) A special purpose financial insurance company shall not be subject to any restriction on investments other than the following:

(1) a special purpose financial insurance company shall not make a loan to any person other than as permitted under its plan of operation or as otherwise approved in advance by the Commissioner; and

(2) the Commissioner may prohibit or limit any investment that threatens the solvency or liquidity of the special purpose financial insurance company unless the investment is otherwise approved in its plan of operation or in an order issued to the special purpose financial insurance company pursuant to subsection 6048d(b) of this chapter, as either is amended from time to time.
8 V.S.A. § 3543 — VT Code / Title 8 / Chapter 101 / Section 3543
§ 3543. Existing forms and filings
Status: in_force

Every form of insurance or annuity document or other filing referred to in section 3541 of this title lawfully in use immediately prior to July 1, 1968 may continue to be so used or be effective until the Commissioner otherwise prescribes; except, that before expiration of one year from and after such effective date neither this part nor the Commissioner shall prohibit the use of any such document or filing because of any power, prohibition, or requirement contained in this part that did not exist under laws in force immediately prior to such effective date.
8 V.S.A. § 7003 — VT Code / Title 8 / Chapter 143 / Section 7003
§ 7003. Issuance and renewal of license
Status: in_force

(a) Upon the filing of an application and the payment of the license fee, the Commissioner shall make an investigation of each applicant and shall issue a license, if the applicant is qualified in accordance with this chapter. If the Commissioner does not so find, he or she shall within 30 days after he or she has declined such application, at the request of the applicant, give the applicant a full hearing.

(b) The Commissioner shall issue or renew a license as may be applied for when he or she is satisfied that the person to be licensed:

(1) is competent and trustworthy and intends to act in good faith in the capacity involved by the license applied for;

(2) has a good business reputation and has had experience, training, or education so as to be qualified in the business for which the license is applied for; and

(3) if a corporation, is a corporation incorporated under the laws of this State or a foreign corporation authorized to transact business in this State.
8 V.S.A. § 3862 — VT Code / Title 8 / Chapter 105 / Section 3862
§ 3862. Minimum capital stock
Status: in_force

A domestic stock fire insurance company shall not be organized with a capital stock less than $200,000.00 paid in, in cash.
8 V.S.A. § 16101 — VT Code / Title 8 / Chapter 206 / Section 16101
§ 16101. Conversions
Status: in_force

(a) General. The provisions of this chapter shall apply whenever a national financial institution seeks to convert to a Vermont financial institution or whenever a Vermont financial institution seeks to convert or amend its charter in order to change its chartering authority, the nature or scope of its organizational authority, or to a different form of ownership; provided, however, that conversion from a Vermont financial institution into a national financial institution shall be as permitted in federal law, shall not require the Commissioner's approval, and federal law shall be controlling to the extent the laws of this State are inconsistent.

(b) Types of conversions. The types of conversions permitted under this chapter are as follows:

(1) conversion from a national financial institution to a Vermont financial institution;

(2) conversion from a Vermont financial institution to a national financial institution;

(3) conversion of a special purpose financial institution into a universal financial institution or into another form of special purpose financial institution;

(4) conversion of a universal financial institution into a special purpose financial institution;

(5) conversion of a mutual financial institution or a cooperative financial institution into an investor-owned financial institution or into a credit union under chapters 220-226 of this title;

(6) conversion of a credit union under chapters 220-226 of this title into a mutual financial institution or a cooperative financial institution; or

(7) conversion of an investor-owned financial institution into a mutual financial institution.

(c) Manner of conversion. Any Vermont financial institution may convert under this chapter in the following manner:

(1) the governing body of the financial institution shall approve the plan of conversion by at least a majority vote, unless a higher percentage is required by the institution's organizational documents;

(2) the approved plan of conversion, together with a certified copy of the authorizing resolution adopted by the governing body of the financial institution, shall be submitted to the Commissioner for approval pursuant to the requirements and procedures of chapter 201, subchapter 7 of this title, except as provided in subsection (a) of this section;

(3) the plan of conversion, as approved by the Commissioner, shall be submitted to the investors or mutual voters of the institution, as the case may be, for their approval at an annual meeting or at a special meeting called for that purpose as provided in subsections (e), (f), and (g) of this section; and

(4) the approved plan shall be finalized as provided in subsection (h) of this section.

(d) Contents of plan of conversion. The plan of conversion shall include:

(1) the name of the institution and its location;

(2) the type of the institution that the resulting institution is to be;

(3) a method and schedule for terminating any nonconforming activities that would result from such conversion;

(4) a statement of the competitive impact resulting from such conversion, including the loss of particular financial services in the market area resulting from such conversion;

(5) a statement that the conversion is subject to approval of the Commissioner, except for conversions from a Vermont financial institution to a national financial institution;

(6) a statement that the conversion is subject to approval of the institution's investors or mutual voters, as the case may be;

(7) in the case of a conversion involving a mutual or cooperative financial institution, the plan shall ensure that the interests of depositors and account holders in the net worth of the institution are treated equitably; and

(8) such additional information as the Commissioner may require.

(e) Notice to investors or mutual voters. Notice of the meeting shall be published at least once a week for three successive weeks in at least one newspaper of general circulation in the county where the institution's principal office is located or in other newspapers as the Commissioner may designate. The notice shall be mailed to each investor of record or mutual voter at the address on the books of the institution at least 30 days prior to the date of the meeting.

(f) Voting requirements. A majority of each class of equity interest, or a majority of the mutual voters of the institution casting votes, unless a higher percentage is required by the institution's organizational documents, is necessary to approve the plan of conversion at the meeting. An affirmative vote constitutes approval of the adoption of any amendments to the organizational documents of the institution that are necessary to effectuate the transaction.

(g) Rights of dissenting investors. For investor-owned institutions that are converting under this chapter, the rights of investors dissenting to the conversion are those specified in Title 11 or 11A, depending upon the organizational form of the institution; provided, however, the rights of dissenting investors in a national financial institution shall be governed by federal law. To the extent that dissenters' rights are not addressed in Title 11 or 11A or the rights contained in those titles are less beneficial to the dissenting investors than those rights listed in the institution's organizational documents, the organizational documents shall govern.

(h) Finalizing the plan of conversion. Except as provided in subsection (i) of this section, the financial institution shall effect its conversion as follows:

(1) Upon approval by the investors or mutual voters of the institution, as the case may be, the institution shall submit the executed conversion plan to the Commissioner, together with all necessary amendments to the institution's organizational documents, each certified by an officer of the institution.

(2) The Commissioner shall issue to the resulting institution a certificate specifying the name of the converting institution and the name and organizational structure of the resulting institution. The resulting institution shall file one copy of the certificate issued by the Commissioner with the Secretary of State for recording. The certificate shall be conclusive evidence of the conversion and the correctness of all proceedings relating to the conversion in all courts and places. The certificate may be filed in any land records office to evidence the new name in which property of the converting institution is to be held.

(3) Unless a later date is specified in the conversion plan, the conversion becomes effective upon filing of the certificate as provided in subdivision (2) of this subsection and the former charter of the converting institution shall terminate automatically. The Commissioner may file or order any financial institution to file conforming documents with the Secretary of State.

(i) Completion of conversion into national financial institution. Upon completion of a conversion into a national financial institution, the national financial institution shall certify in writing to the Commissioner and the Secretary of State that the conversion has been completed under applicable federal law. The charter of the converting financial institution shall terminate automatically upon issuance of the national financial institution charter.

(j) If the Commissioner disapproves the conversion plan, the Commissioner shall state the reasons for the disapproval in writing and furnish them to the institution. The institution shall be given a reasonable opportunity to amend the plan to eliminate the reasons for disapproval.

(k) Authority for expedited conversion. Notwithstanding any other section of law or any organizational document of the financial institution, the Commissioner may order that a charter conversion become effective immediately when the Commissioner finds it is necessary for the protection of depositors, investors, or the public.
8 V.S.A. § 5031 — VT Code / Title 8 / Chapter 138 / Section 5031
§ 5031. Licensing of surplus lines brokers
Status: in_force

After written application on a form supplied by the Commissioner, any licensed producer who is deemed by the Commissioner to be trustworthy and competent may be licensed as a surplus lines broker, pursuant to the provisions of chapter 131 of this title.
8 V.S.A. § 6047 — VT Code / Title 8 / Chapter 141 / Section 6047
§ 6047. Taxation of branch captives
Status: in_force

In the case of a branch captive insurance company, the tax provided for in section 6014 of this title shall apply only to the branch business of such company.
8 V.S.A. § 3859 — VT Code / Title 8 / Chapter 103 / Section 3859
§ 3859. Grace; reinstatement; nonforfeiture
Status: in_force

(a) Except for subdivisions 3731(2), (7), (8), and (9) of this title, sections 3760-3773 of this title, inclusive, section 3813 of this title in the case of a variable life insurance policy, and section 3750 of this title in the case of a variable annuity contract, and except as otherwise provided in this subchapter, all pertinent provisions of this title apply to separate accounts and contracts relating thereto. Any individual variable life insurance contract delivered or issued for delivery in this State shall contain grace, reinstatement, and nonforfeiture provisions appropriate to such a contract. Any group variable life insurance contract delivered or issued for delivery in this State shall contain grace provisions appropriate to such a contract.

(b) The reserve liability for variable contracts shall be established in accordance with actuarial procedures that recognize the variable nature of the benefits provided and any mortality guarantees.
8 V.S.A. § 4206 — VT Code / Title 8 / Chapter 113 / Section 4206
§ 4206. Acts not constituting waivers
Status: in_force

The acknowledgment by an insurer of the receipt of notice given under a policy covered by the provisions of this chapter, or the furnishing of forms for filing proofs of loss, or the acceptance of such proofs, or the investigation of a claim under the policy shall not operate as a waiver of any of the rights of the insurer in defense of a claim arising under the policy.
8 V.S.A. § 2122 — VT Code / Title 8 / Chapter 72 / Section 2122
§ 2122. Use of other names or business places
Status: in_force

(a) A licensee shall not conduct business or make a loan subject to regulation under this part under any other name or at any other place of business than as specified in its license.

(b) Mortgage loan originators and employees of licensees may work remotely through a licensed location without being physically present at such location, provided the mortgage loan originator or employee is assigned to a licensed location, is adequately supervised by the licensee, and the licensee and the mortgage loan originator or employee meet such additional conditions as the Commissioner may require.

(c) This section does not apply to a commercial loan made to a borrower located outside Vermont for use outside Vermont.
8 V.S.A. § 3426 — VT Code / Title 8 / Chapter 101 / Section 3426
§ 3426. Effective date of merger or consolidation
Status: in_force

Upon the issuance of a certificate of merger or a certificate of consolidation by the Secretary of State, the merger or consolidation, as the case may be, shall be effected, subject to the rights of dissenting shareholders, members or policyholders, as provided in sections 3428 and 3429 of this title.
8 V.S.A. § 2109 — VT Code / Title 8 / Chapter 72 / Section 2109
§ 2109. Annual renewal of license
Status: repealed

(a) On or before December 1 of each year, every licensee shall renew its license or registration for the next succeeding calendar year and shall pay to the Commissioner the applicable renewal of license or registration fee. At a minimum, the licensee or registree shall continue to meet the applicable standards for licensure or registration. At the same time, the licensee or registree shall maintain with the Commissioner any required bond in the amount and of the character as required by the applicable chapter. The annual license or registration renewal fee shall be:

(1) For a lender license under chapter 73 of this title, $1,200.00.

(2) For a lender license under chapter 73 of this title for a lender only making commercial loans, $500.00.

(3) For a mortgage broker license under chapter 73 of this title, other than a mortgage broker that meets each of the requirements of subdivisions (4)(A)-(C) of this subsection, $500.00.

(4) For a mortgage broker license under chapter 73 of this title that meets each of the following requirements, $250.00:

(A) the mortgage broker license is held by an individual sole proprietor;

(B) no person, other than the individual sole proprietor, shall be authorized to act as a mortgage broker under this license; and

(C) the mortgage broker originated five or fewer loans within the last calendar year.

(5) For a mortgage loan originator license under chapter 73 of this title, $100.00.

(6) For a sales finance company license under chapter 73 of this title, $350.00.

(7) For a loan solicitation license under chapter 73 of this title, $500.00.

(8) [Repealed.]

(9) For a consumer litigation funding company registration under chapter 74 of this title, $200.00.

(10) For a money transmission license under chapter 79 of this title, $1,000.00, plus an annual renewal fee of $25.00 for each authorized delegate, provided that the total renewal fee of all authorized delegate locations shall not exceed $3,500.00.

(11) For a check cashing and currency exchange license under chapter 79 of this title, $500.00.

(12) For a debt adjuster license under chapter 83 of this title, $250.00.

(13) For a loan servicer license under chapter 85 of this title, $1,000.00.

(14) For a personal information protection company license under chapter 78 of this title, $500.00.

(b) A license originally issued on or after November 1 of the current year is valid for the next succeeding year.

(c) In addition to the annual renewal fee, on or before April 1 of each year a money transmission licensee shall pay the Department an annual assessment equal to $0.0001 per dollar volume of money services activity performed for, or sold or issued to, Vermont customers for the most recent year ending December 31, which assessment shall not be less than $100.00 and shall not be greater than $15,000.00.

(d) An individual holding a mortgage loan originator license shall also satisfy the annual continuing education requirement of section 2204c of this title.

(e) Notwithstanding any other provision of this title, the license of a mortgage loan originator who fails to pay the annual renewal fee or fails to satisfy all of the minimum license renewal standards by December 1 shall automatically expire on December 31.

(f) Notwithstanding any other provision of this title, the registration of a litigation funding company that fails to pay the annual renewal fee or fails to satisfy all of the minimum registration renewal requirements by December 1 shall automatically expire on December 31.

(g) Notwithstanding any other provisions of this title to the contrary, the license of a money transmitter who fails to pay the annual renewal fee on or before December 1 shall automatically expire on December 31.
8 V.S.A. § 14303 — VT Code / Title 8 / Chapter 204 / Section 14303
§ 14303. Bank credit cards
Status: in_force

(a) General authority. Any financial institution that is authorized to do a lending business in this State may issue bank credit cards.

(b) No discrimination. No financial institution shall discriminate against any applicant for a bank credit card on the bases set forth in section 10403 of this title. Nothing in this section shall be taken to prohibit the establishment of separate credit card accounts for persons who are married.

(c) Statements of account. Issuers of bank credit cards shall promptly furnish a statement of each cardholder's account as of the end of each monthly period, which need not be a calendar month, in which there is any unpaid balance on the account, which statement shall include the following information, not necessarily in the order stated:

(1) the unpaid balance of the account at the beginning of the period;

(2) the amount of cash advances, if any, during the period;

(3) unless furnished by the seller or tax department to the cardholder by sales slip, memorandum, or otherwise, information in the statement of account sufficient to allow the cardholder reasonably to identify the transaction or delinquent taxes paid as permitted by 32 V.S.A. § 3109(c) during the period, the cash price and the date of each purchase or tax payment;

(4) the payments and other credits applied to the cardholder's account during the period;

(5) the balance at the billing date for cash advances, property, and services subject to finance charge;

(6) the amount and rate of the finance charge imposed;

(7) the balance at the billing date for property, labor, or services purchased or delinquent taxes paid during the billing period, if any, and the date by which it may be paid to avoid any finance charge.

(d) Finance charges; annual fees; ATM fee.

(1) As to that part of an account balance that shall result from cash advances, if any, the finance charge shall be applied to the average daily balance of the cash advances in the account for the billing period. An issuer of a bank credit card account may provide for an annual fee. Except for cash advances, no finance charge shall be imposed on items in the account for property, labor, and services purchased during the billing period to the extent that they are paid for not later than 25 days from the financial institution's billing date for the item. No change in the terms of a bank credit card agreement that might require such credit cardholder to pay an annual fee shall take effect unless:

(A) at least 60 days prior to the effective date of the change, a written notice has been mailed or delivered to the cardholder that clearly and conspicuously describes the annual fee, and contains a return stamped response addressed to the issuer with instructions to the cardholder to return the response to the issuer within 30 days, signed by the cardholder and indicating a preference, expressed in the response, for either of the following options:

I accept the change as notified.

I do not accept, and hereby cancel my card.

The notice shall further state that the incurrence by the cardholder or another authorized person of any further indebtedness under the plan to which the agreement relates on or after the effective date of such change specified in the notice shall constitute acceptance of such annual fee; and

(B) either the credit cardholder agrees in writing to such annual fee or the credit cardholder or another authorized person incurs such further indebtedness on or after the effective date of the change stated in such notice.

(2) A credit transaction effected by the use of an automated teller machine (ATM) may be subject to a transaction fee in addition to any finance charges permitted by this section.

(e) Payments.

(1) 9 V.S.A. §§ 45 and 47 shall apply with respect to prepayment and application of payments to cardholder accounts. With respect to transactions in Vermont charged to a bank credit card account established by a Vermont financial institution, the defenses preserved by 9 V.S.A. § 2455 shall be available to the cardholder as against the financial institution in any action or proceeding to enforce collection of said account by a financial institution.

(2) In the case of a bank credit card account, except for a loan or extension of credit secured by a lien against real estate, the periodic billing shall be no less than 1/48th of the balance as of the last advance.

(f) Quarterly reports. Any financial institution that is authorized to do business in this State may issue bank credit cards only if it reports quarterly to the Commissioner pursuant to subsection 10401(b) of this title on its rates and charges on its bank credit card products.
8 V.S.A. § 2501 — VT Code / Title 8 / Chapter 79 / Section 2501
§ 2501. Transition period
Status: in_force

(a) A person licensed under subchapter three of this chapter prior to July 1, 2024, and their authorized delegates, shall not be subject to the provisions of this chapter that establish new or different requirements from those that existed prior to July 1, 2024 until July 1, 2025.

(b) Notwithstanding subsection (a) of this section, on or before July 1, 2025 a licensee shall amend its authorized delegate written contracts to comply with the requirements in section 2525 of this chapter, provided the licensee and authorized delegate otherwise operate in full compliance with this chapter pursuant to the timeline established in subsection (a) of this section.
8 V.S.A. § 13601 — VT Code / Title 8 / Chapter 203 / Section 13601
§ 13601. Voluntary dissolution; procedure; criteria
Status: in_force

(a) A mutual or cooperative financial institution shall submit to the Commissioner for approval a plan of dissolution prior to filing its articles of dissolution under Title 11A. The plan shall contain the following items:

(1) pro forma financial statements that demonstrate that the financial institution will, upon dissolution, discharge, or make provision for discharging, its liabilities;

(2) a method to distribute all remaining assets among its depositors or members according to their interests;

(3) the process of and resources dedicated to the oversight of the dissolution of the financial institution;

(4) the plan to transfer to any other financial institution its deposit, loan, and trust accounts, including escheat of all remaining deposit accounts to the State of Vermont;

(5) the procurement or continuation of insurance or the provision of other security as the Commissioner deems necessary;

(6) an acknowledgment that, before the articles of dissolution are filed, there will be no distributions to depositors or members, without first providing for the obligations of the dissolving entity; and

(7) such other information or assurances as the Commissioner may require.

(b) Upon approval of the plan, the financial institution may file its articles of dissolution with the Secretary of State under Title 11A and proceed with the dissolution as provided by law.

(c) During its wind-up, a dissolved entity shall not transact any further banking business after its deposit insurance has terminated.
8 V.S.A. § 2201 — VT Code / Title 8 / Chapter 73 / Section 2201
§ 2201. Licenses required
Status: in_force

(a) Without first obtaining a license under this chapter from the Commissioner, a person shall not:

(1) Engage in the business of making loans of money, credit, goods, or things in action and charge, contract for, or receive on any such loan interest, a finance charge, discount, or consideration therefor.

(2) Act as a mortgage broker.

(3) Engage in the business of a mortgage loan originator.

(4) Act as a sales finance company.

(5) Engage in the business of loan solicitation. A person licensed as a lender, sales finance company, or mortgage broker is not required to obtain a separate loan solicitation license when acting on the person's own behalf.

(b) A licensed mortgage loan originator shall register and maintain a valid unique identifier with the Nationwide Multistate Licensing System and Registry and shall be either:

(1) An employee actively employed at or assigned to a licensed location of, and supervised and sponsored by, only one licensed lender or licensed mortgage broker operating in this State.

(2) An individual sole proprietor who is also a licensed lender or licensed mortgage broker.

(3) An employee engaged in loan modifications employed at or assigned to a licensed location of, and supervised and sponsored by, only one third-party loan servicer licensed to operate in this State pursuant to chapter 85 of this title. As used in this subsection, “loan modification” means an adjustment or compromise of an existing residential mortgage loan. The term “loan modification” does not include a refinancing transaction.

(c) A person licensed pursuant to subdivision (a)(1) of this section may engage in mortgage brokerage and sales finance if such person informs the Commissioner in advance that he or she intends to engage in sales finance and mortgage brokerage. Such person shall inform the Commissioner of his or her intention on the original license application under section 2102 of this title, any renewal application under section 2109 of this title, or pursuant to section 2106 of this title, and shall pay the applicable fees required by subsection 2102(b) of this title for a mortgage broker license or sales finance company license.

(d) A lender license, mortgage broker license, sales finance company license, or loan solicitation license shall not be required of:

(1) A state agency, political subdivision, or other public instrumentality of a state.

(2) A federal agency or other public instrumentality of the United States.

(3) A gas or electric utility subject to the jurisdiction of the Public Utility Commission engaging in energy conservation or safety loans.

(4) A depository institution or a financial institution as defined in subdivision 11101(32) of this title.

(5) A pawnbroker.

(6) An insurance company.

(7) A seller of goods or services that finances the sale of such goods or services, other than a residential mortgage loan.

(8) Any individual who offers or negotiates the terms of a residential mortgage loan secured by a dwelling that served as the individual's residence, including a vacation home, or inherited property that served as the deceased's dwelling, provided that the individual does not act as a mortgage loan originator or provide financing for such sales so frequently and under such circumstances that it constitutes a habitual activity and acting in a commercial context.

(9) Lenders that conduct their lending activities, other than residential mortgage loan activities, through revolving loan funds, that are nonprofit organizations exempt from taxation under 26 U.S.C. § 501(c) and that register with the Commissioner of Economic Development under 10 V.S.A. § 690a.

(10) Persons who lend, other than residential mortgage loans, an aggregate of less than $250,000.00 in any one year at rates of interest of no more than 12 percent per annum.

(11) A seller who, pursuant to 9 V.S.A. § 2355(f)(1)(D), includes the amount paid or to be paid by the seller to discharge a security interest, lien interest, or lease interest on the traded-in motor vehicle in a motor vehicle retail installment sales contract, provided that the contract is purchased, assigned, or otherwise acquired by a sales finance company licensed pursuant to this title to purchase motor vehicle retail installment sales contracts or a depository institution.

(12)(A) A person making an unsecured commercial loan, which loan is expressly subordinate to the prior payment of all senior indebtedness of the commercial borrower regardless of whether such senior indebtedness exists at the time of the loan or arises thereafter. The loan may or may not include the right to convert all or a portion of the amount due on the loan to an equity interest in the commercial borrower.

(B) As used in this subdivision (12), “senior indebtedness” means:

(i) all indebtedness of the commercial borrower for money borrowed from depository institutions, trust companies, insurance companies, and licensed lenders, and any guarantee thereof; and

(ii) any other indebtedness of the commercial borrower that the lender and the commercial borrower agree shall constitute senior indebtedness.

(13) Nonprofit organizations established under testamentary instruments, exempt from taxation under 26 U.S.C. § 501(c)(3), and that make loans for postsecondary educational costs to students and their parents, provided that the organizations provide annual accountings to the Probate Division of the Superior Court.

(14) Any individual who offers or negotiates terms of a residential mortgage loan with or on behalf of an immediate family member of the individual.

(15) A housing finance agency.

(16) A person who makes no more than three mortgage loans in any consecutive three-year period beginning on or after July 1, 2011.

(e) A mortgage loan originator license shall not be required of:

(1) Registered mortgage loan originators, when employed by and acting for an entity described in subdivision 2200(12) of this chapter.

(2) Any individual who offers or negotiates terms of a residential mortgage loan with or on behalf of an immediate family member of the individual.

(3) Any individual who offers or negotiates terms of a residential mortgage loan secured by a dwelling that served as the individual's residence, including a vacation home, or inherited property that served as the deceased's dwelling, provided that the individual does not act as a mortgage loan originator or provide financing for such sales so frequently and under such circumstances that it constitutes a habitual activity and acting in a commercial context.

(4) An individual who is an employee of a federal, state, or local government agency, or an employee of a housing finance agency, who acts as a mortgage loan originator only pursuant to his or her official duties as an employee of the federal, state, or local government agency or housing finance agency.

(5) A licensed attorney who negotiates the terms of a residential mortgage loan on behalf of a client as an ancillary matter to the attorney's representation of the client, unless the attorney is compensated by a lender, a mortgage broker, or other mortgage loan originator or by any agent of such lender, mortgage broker, or other mortgage loan originator. To the extent an attorney licensed in this State undertakes activities that are covered by the definition of a mortgage loan originator, such activities do not constitute engaging in the business of a mortgage loan originator, provided that:

(A) such activities are considered by the State governing body responsible for regulating the practice of law to be part of the authorized practice of law within this State;

(B) such activities are carried out within an attorney-client relationship; and

(C) the attorney carries them out in compliance with all applicable laws, rules, ethics, and standards.

(6) A person who makes no more than three mortgage loans in any consecutive three-year period beginning on or after July 1, 2011.

(f) If a person who offers or negotiates the terms of a mortgage loan is exempt from licensure pursuant to subdivision (d)(16) or (e)(6) of this section, there is a rebuttable presumption that he or she is not engaged in the business of making loans or being a mortgage loan originator.

(g) Independent contractor loan processors or underwriters. A loan processor or underwriter who is an independent contractor may not engage in the activities of a loan processor or underwriter unless such independent contractor loan processor or underwriter obtains and maintains a mortgage loan originator license. Each independent contractor loan processor or underwriter licensed as a mortgage loan originator must have and maintain a valid unique identifier issued by the Nationwide Multistate Licensing System and Registry.

(h) This chapter shall not apply to commercial loans of $1,000,000.00 or more.
8 V.S.A. § 8508 — VT Code / Title 8 / Chapter 165 / Section 8508
§ 8508. Product filing and approval
Status: in_force

(a) Insurers and third-party filers seeking to have a product approved by the Commission shall file the product with, and pay applicable filing fees to, the Commission. Nothing in this chapter shall be construed to restrict or otherwise prevent an insurer from filing its product with the insurance department in any state where the insurer is licensed to conduct the business of insurance, and such filing shall be subject to the laws of the states where filed.

(b) The Commission shall establish appropriate filing and review processes and procedures pursuant to Commission rules and operating procedures. Notwithstanding any provision of this chapter to the contrary, the Commission shall adopt rules to establish conditions and procedures under which the Commission will provide public access to product filing information. In establishing such rules, the Commission shall consider the interests of the public in having access to such information, as well as protection of personal medical and financial information and trade secrets, that may be contained in a product filing or supporting information.

(c) Any product approved by the Commission may be sold or otherwise issued in those compacting states for which the insurer is legally authorized to do business.
8 V.S.A. § 4143 — VT Code / Title 8 / Chapter 111 / Section 4143
§ 4143. Law governing foreign fidelity, surety, and annuity companies
Status: in_force

The companies specified in section 4141 of this title are governed by and subject to the laws of this State relating to foreign insurance companies and their admission to do business in this State, as applicable.
8 V.S.A. § 14202 — VT Code / Title 8 / Chapter 204 / Section 14202
§ 14202. Payment of deposits to administrators from another state or country
Status: in_force

(a) When a deposit is made in a financial institution by a person residing in another state or country, the deposit, or any part thereof, with the interest thereon, may be paid to the administrator or executor appointed in the state or country where the depositor resided at the time of death, provided an administrator or executor has not been appointed in this State at the time of such payment.

(b) An action shall not be maintained against a financial institution for the recovery of a deposit or any part thereof, with the dividend or interest thereon, made by a person residing in another state or country who has died, payment of which has been made to the executor or administrator appointed in the state or country where the depositor resided at the time of death, before the appointment of an executor or administrator in this State.
8 V.S.A. § 4225 — VT Code / Title 8 / Chapter 113 / Section 4225
§ 4225. Notice of nonrenewal
Status: in_force

No insurer shall refuse to renew a policy of insurance unless such insurer or its agent shall mail or deliver to the named insured, at the address shown in the policy, at least 45 days' advance notice of its intention not to renew. This section shall not apply if the insurer has manifested its willingness to renew, or in case of nonpayment of premium, or if the insured fails to pay any advance premium required by the insurer for renewal. Notwithstanding the failure of an insurer to comply with this section, the policy shall terminate on the effective date of any other insurance policy with respect to any automobile designated in both policies. Renewal of a policy shall not constitute a waiver or estoppel with respect to grounds for cancellation that existed before the effective date of such renewal.
8 V.S.A. § 4254 — VT Code / Title 8 / Chapter 113 / Section 4254
§ 4254. Prohibited terms
Status: in_force

No service contract issued, sold, or covering property located in this State shall provide:

(1) that the consumer is not a party to the contract;

(2) that the provider has no liability to the consumer;

(3) that the consumer does not have the right to bring an action to enforce the terms of the contract or otherwise challenge the denial of a claim that the consumer believes is wrongful, subject to the provisions of any alternative dispute resolution procedure authorized by contract and by law; or

(4) that any civil action brought in connection with the service contract must be brought in the courts of a jurisdiction other than Vermont.
8 V.S.A. § 3885 — VT Code / Title 8 / Chapter 105 / Section 3885
§ 3885. Penalties
Status: in_force

A person who violates a provision of section 3879, 3880, 3881, 3882, 3883, or 3884 of this title may be subject to an administrative penalty of $2,000.00 for each violation.
8 V.S.A. § 3363 — VT Code / Title 8 / Chapter 101 / Section 3363
§ 3363. Revocation of license
Status: in_force

If such insurer violates any of the laws of this State relating to insurance companies, the Commissioner may revoke its license and cause notice thereof to be published at least one week in two daily newspapers, one of general circulation in Montpelier and one of general circulation in Burlington. An agent of such insurer shall not, after the first publication of such notice, issue or renew a policy of insurance in its behalf.
8 V.S.A. § 4691 — VT Code / Title 8 / Chapter 128 / Section 4691
§ 4691. Filing of records and reports; exchange of information
Status: in_force

(a) Except as provided in section 4687 of this title, the Commissioner shall review and approve, as appropriate, reasonable rules and plans for recording and reporting of loss and expense experience in appropriate form and detail and shall by rule require insurers to file loss and expense data and investment income statistics in such form and detail as the Commissioner deems appropriate. Notwithstanding any other provision of this chapter to the contrary, the Commissioner may designate one or more advisory or service organizations or contractors to assist in the gathering of such experience and making and distributing compilations thereof.

(b) The Commissioner and every insurer, advisory or service organization may exchange information and experience data with insurance regulatory officials, insurers, advisory or service organizations in this and other states and may consult with them with respect to ratemaking and the application of rating systems.
8 V.S.A. § 4813f — VT Code / Title 8 / Chapter 131 / Section 4813f
§ 4813f. Application for license
Status: in_force

(a) An individual applying for a resident insurance producer license shall make application to the Commissioner on the Uniform Application and declare under penalty of refusal, suspension, or revocation of the license that the statements made in the application are true, correct, and complete to the best of the individual's knowledge and belief. Before approving the application, the Commissioner shall find that the individual:

(1) is at least 18 years of age;

(2) has not committed any act that is a ground for denial, suspension, or revocation set forth in section 4804 of this title;

(3) is competent, trustworthy, financially responsible, and of good personal and business reputation;

(4) has paid the fees set forth in section 4800 of this title; and

(5) has successfully passed the examinations for the lines of authority for which the person has applied.

(b) As soon as practicable, but no later than April 1, 2003, the Commissioner shall permit a business entity to be licensed as an insurance producer. Application shall be made using the Uniform Business Entity Application. Except as permitted by regulation, licensure of a business entity shall not relieve any natural person who sells, solicits, or negotiates insurance of the requirement to be licensed under this chapter. Before approving the application, the Commissioner shall find that:

(1) The business entity has paid the fees set forth in section 4800 of this title.

(2) The business entity has designated a licensed producer who is a natural person responsible for the business entity's compliance with the insurance laws, rules, and regulations of this State.

(c) The Commissioner may require any documents reasonably necessary to verify the information contained in an application.
8 V.S.A. § 4080 — VT Code / Title 8 / Chapter 107 / Section 4080
§ 4080. Anesthesia for certain dental procedures
Status: in_force

(a) As used in this section:

(1) “Ambulatory surgical center” has the same meaning as in 18 V.S.A. § 2141.

(2) “Anesthesiologist” means a physician who is licensed under 26 V.S.A. chapter 23 or 33 and who either:

(A) has completed a residency in anesthesiology approved by the American Board of Anesthesiology or the American Osteopathic Board of Anesthesiology or their predecessors or successors; or

(B) is credentialed by a hospital to practice anesthesiology and engages in the practice of anesthesiology at that hospital full-time.

(3) “Certified registered nurse anesthetist” means an advanced practice registered nurse licensed by the Vermont Board of Nursing to practice as a certified registered nurse anesthetist.

(4) “Licensed mental health professional” means a licensed physician, psychologist, psychoanalyst, social worker, marriage and family therapist, clinical mental health counselor, or nurse with professional training, experience, and demonstrated competence in the treatment of a mental condition or psychiatric disability.

(b) A health insurance plan shall provide coverage for the hospital or ambulatory surgical center charges and administration of general anesthesia administered by a licensed anesthesiologist or certified registered nurse anesthetist for dental procedures performed on a covered individual who is:

(1) a child seven years of age or younger who is determined by a dentist licensed pursuant to 26 V.S.A. chapter 13 to be unable to receive needed dental treatment in an outpatient setting, where the provider treating the covered individual certifies that due to the covered individual's age and the covered individual's condition or problem, hospitalization or general anesthesia in a hospital or ambulatory surgical center is required in order to perform significantly complex dental procedures safely and effectively;

(2) a child 12 years of age or younger with documented phobias or a documented mental condition or psychiatric disability, as determined by a physician licensed pursuant to 26 V.S.A. chapter 23 or 33 or by a licensed mental health professional, whose dental needs are sufficiently complex and urgent that delaying or deferring treatment can be expected to result in infection, loss of teeth, or other increased oral or dental morbidity; for whom a successful result cannot be expected from dental care provided under local anesthesia; and for whom a superior result can be expected from dental care provided under general anesthesia; or

(3) a person who has exceptional medical circumstances or a developmental disability, as determined by a physician licensed pursuant to 26 V.S.A. chapter 23 or 33, that place the person at serious risk.

(c) A health insurance plan may require prior authorization for general anesthesia and associated hospital or ambulatory surgical center charges for dental care in the same manner that prior authorization is required for these benefits in connection with other covered medical care.

(d) A health insurance plan may restrict coverage for general anesthesia and associated hospital or ambulatory surgical center charges to dental care that is provided by:

(1) a fully accredited specialist in pediatric dentistry;

(2) a fully accredited specialist in oral and maxillofacial surgery; and

(3) a dentist to whom hospital privileges have been granted.

(e) The provisions of this section shall not be construed to require a health insurance plan to provide coverage for the dental procedure or other dental care for which general anesthesia is provided.

(f) The provisions of this section shall not be construed to prevent or require reimbursement by a health insurance plan for the provision of general anesthesia and associated facility charges to a dentist holding a general anesthesia endorsement issued by the Vermont Board of Dental Examiners if the dentist has provided services pursuant to this section on an outpatient basis in the dentist's own office and the dentist is in compliance with the endorsement's terms and conditions. (Recodified and amended 2025, No. 11, § 2, eff. September 1, 2025.)
8 V.S.A. § 3840 — VT Code / Title 8 / Chapter 103 / Section 3840
§ 3840. Investigations and examinations
Status: in_force

(a) The Commissioner, in addition to all powers granted pursuant to chapter 1 of this title, may examine the business and affairs of any licensee or applicant for a license whenever he or she deems it to be prudent for the protection of policyholders or the public. The Commissioner shall have the authority to examine any person and to order the production of any records, books, files or other information reasonably necessary to ascertain whether the licensee or applicant is acting or has acted in violation of the law or otherwise contrary to the interests of the public. The expenses incurred in conducting any examination shall be paid by the licensee or applicant.

(b) A person required to be licensed by this subchapter shall for five years following the death of the insured retain copies of all:

(1) proposed, offered, or executed contracts, purchase agreements, underwriting documents, policy forms, and applications from the date of the proposal, offer, or execution of the contract or purchase agreement, whichever is later;

(2) all checks, drafts, or other evidence and documentation related to the payment, transfer, deposit, or release of funds from the date of the transaction; and

(3) all other records and documents related to the requirements of this subchapter.

(c) Except as otherwise provided in this subchapter, all examination reports, working papers, recorded information, documents and copies thereof produced by, obtained by, or disclosed to the Commissioner or any other person in the course of an examination or investigation made under this subchapter or in the course of analysis or investigation by the Commissioner of the financial condition or market conduct of a licensee shall be confidential by law and privileged, shall not be subject to disclosure as a public record under 1 V.S.A. § 317, shall not be subject to subpoena, and shall not be subject to discovery or admissible in evidence in any private civil action. The Commissioner is authorized to use the documents, materials, or other information in the furtherance of any regulatory or legal action brought as part of the Commissioner's official duties.

(d) The expense incurred in conducting any examination shall be paid by the licensee or applicant.
8 V.S.A. § 3579 — VT Code / Title 8 / Chapter 101 / Section 3579
§ 3579. Qualified accountants
Status: in_force

(a) A certified public accountant retained to perform audits of an insurer pursuant to the annual financial reporting rule adopted by the Commissioner under section 3578a of this title:

(1) shall be a member in good standing of the American Institute of Certified Public Accountants and in all states in which the accountant is licensed, or, for a Canadian or British company, be a chartered accountant;

(2) shall be independent with respect to the insurer;

(3) shall conform to the standards of the profession as contained in the code of professional ethics of the American Institute of Certified Public Accountants and of the Vermont Board of Public Accountancy or similar codes governing such accountant's professional conduct or ethics;

(4) shall not directly or indirectly enter into an agreement of indemnification or release from liability with respect to the insurer being audited where the intent or effect is to shift or limit in any manner the potential liability of the person or firm for failure to adhere to applicable auditing or professional standards, whether or not resulting in part from knowing or other misrepresentations made by the insurer or its representatives; and

(5) may enter into an agreement with an insurer to have disputes relating to an audit resolved by mediation or arbitration; provided, however, in the event of a delinquency proceeding commenced against the insurer under chapter 145 of this title, the mediation or arbitration provisions shall operate at the option of the statutory successor.

(b) A domestic insurer required to be audited pursuant to the annual financial reporting rule adopted by the Commissioner under section 3578a of this title shall register with the Commissioner the name and address of the certified public accountant retained in compliance with this section and pay a registration fee of $100.00. If the Commissioner determines that a report filed by a foreign or alien insurer under subsection 3578(f) of this title is not substantially similar to the requirements imposed by the annual financial reporting rule adopted by the Commissioner under section 3578a of this title, the foreign or alien insurer shall, within 30 days of such determination, register the name and address of the certified public accountant retained in compliance with this section and pay a registration fee of $100.00. The notice of registration shall include the accountant's statement that the accountant:

(1) meets the requirements of this section;

(2) is familiar with the insurance laws of the insurer's state of domicile that relate to accounting and financial matters;

(3) will express his or her opinion on whether the financial statements conform to the statutory accounting practices prescribed or permitted by the Department, and specify any exceptions;

(4) understands that the Commissioner will be relying on the accountant's report to monitor the financial position of the insurer;

(5) agrees to make available to the Commissioner for inspection or copying any and all work papers generated in the audit, including procedures followed, tests performed, information obtained, conclusions, planning documentation, work programs, analyses, memoranda, letters of confirmation and representation, abstracts of documents, schedules, or commentaries prepared or obtained by the independent certified public accountant in the course of examination; and

(6) agrees to retain the audit work papers until the Department has filed a report of examination on the period of the audit, but no longer than seven years from the date of the audit report.

(c) An insurer shall notify the Commissioner in writing within five business days of the dismissal or resignation of the accountant who prepared the insurer's immediately preceding filed audited financial report. The insurer shall notify the Commissioner in writing, within 10 business days of the notice of dismissal or resignation, whether in the 24 months preceding such dismissal or resignation there were any substantial, material disagreements with the former accountant on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, including disagreements resolved to the former accountant's satisfaction and disagreements not resolved to the former accountant's satisfaction. Substantial disagreements include those that occur between the former accountant and personnel of the insurer responsible for the insurer's audited financial report. Material disagreements include those that, if not resolved to the satisfaction of the former accountant, would have caused him or her to make reference to the subject matter of the disagreement in connection with his or her opinion.

(d)(1) The Commissioner shall disqualify any certified public accountant who:

(A) has engaged in unprofessional conduct as defined by 26 V.S.A. § 76;

(B) has been found to have violated the insurance laws of any state with respect to prior audit reports; or

(C) has demonstrated a pattern or practice of failing to detect or disclose material information in previous reports filed under this section.

(2) After notice and hearing, the Commissioner may find that a certified public accountant is not qualified to express his or her opinion in the report required by this section and may require the insurer to replace the accountant with an accountant qualified under this section. Any hearing held under this subsection shall be governed by 3 V.S.A. chapter 25.

(e) No partner or other person rendering the report required by the annual financial reporting rule adopted by the Commissioner under section 3578a of this title may act in that capacity for more than five consecutive years. Upon application by the insurer, the Commissioner may find that the rotation requirement of this subsection would pose an unreasonable hardship on the insurer and may extend the accountant's period of qualification for an additional term. In making such determinations, the Commissioner may consider the experience of the retained accountant and the size of his or her business, the premium volume of the insurer, and the number of jurisdictions in which the insurer transacts business, as provided by the annual financial reporting rule adopted by the Commissioner under section 3578 of this title.

(f) In the case of Canadian and British insurers, the annual audited financial report shall be defined as the annual statement of total business on the form filed by such companies with their domiciliary supervision authority duly audited by an independent chartered accountant.
8 V.S.A. § 6020 — VT Code / Title 8 / Chapter 141 / Section 6020
§ 6020. Conversion to or merger with reciprocal insurer
Status: in_force

(a) An association captive insurance company, risk retention group, industrial insured captive insurance company formed as a stock or mutual corporation, or other insurer approved by the Commissioner may be converted to or merged with and into a reciprocal insurer in accordance with a plan therefore and the provisions of this section.

(b) Any plan for such conversion or merger shall provide a fair and equitable plan for purchasing, retiring, or otherwise extinguishing the interests of the stockholders and policyholders of a stock insurer, and the members and policyholders of a mutual insurer, including a fair and equitable provision for the rights and remedies of dissenting stockholders, members, or policyholders.

(c) In the case of a conversion authorized under subsection (a) of this section:

(1) such conversion shall be accomplished under such reasonable plan and procedure as may be approved by the Commissioner; provided, however, that the Commissioner shall not approve any such plan of conversion unless such plan:

(A) satisfies the provisions of subsection (b) of this section;

(B) provides for a hearing, of which notice is given or to be given to the captive insurance company, its directors, officers, and policyholders, and, in the case of a stock insurer, its stockholders, and in the case of a mutual insurer, its members, all of which persons shall be entitled to attend and appear at such hearing; provided, however, that if notice of a hearing is given and no director, officer, policyholder, member, or stockholder requests a hearing, the Commissioner may cancel such hearing;

(C) provides a fair and equitable plan for the conversion of stockholder, member, or policyholder interests into subscriber interests in the resulting reciprocal insurer, substantially proportionate to the corresponding interests in the stock or mutual insurer; provided, however, that this requirement shall not preclude the resulting reciprocal insurer from applying underwriting criteria that could affect ongoing ownership interests; and

(D) is approved:

(i) in the case of a stock insurer, by a majority of the shares entitled to vote represented in person or by proxy at a duly called regular or special meeting at which a quorum is present; and

(ii) in the case of a mutual insurer, by a majority of the voting interests of policyholders represented in person or by proxy at a duly called regular or special meeting thereof at which a quorum is present;

(2) the Commissioner shall approve such plan of conversion if the Commissioner finds that the conversion will promote the general good of the State in conformity with those standards set forth in subdivision 6006(d)(2) of this title;

(3) if the Commissioner approves the plan, the Commissioner shall amend the converting insurer's certificate of authority to reflect conversion to a reciprocal insurer and issue such amended certificate of authority to the company's attorney-in-fact;

(4) upon the issuance of an amended certificate of authority of a reciprocal insurer by the Commissioner, the conversion shall be effective; and

(5) upon the effectiveness of such conversion the corporate existence of the converting insurer shall cease and the resulting reciprocal insurer shall notify the Secretary of State of such conversion.

(d) A merger authorized under subsection (a) of this section shall be accomplished substantially in accordance with the procedures set forth in sections 3424, 3426, and 3431 of this title, except that, solely for purposes of such merger:

(1) the plan of merger shall satisfy the provisions of subsection (b) of this section;

(2) the subscribers' advisory committee of a reciprocal insurer shall be equivalent to the board of directors of a stock or mutual insurance company;

(3) the subscribers of a reciprocal insurer shall be the equivalent of the policyholders of a mutual insurance company;

(4) if a subscribers' advisory committee does not have a president or secretary, the officers of such committee having substantially equivalent duties shall be deemed the president or secretary of such committee;

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

(6) subdivision 3424(7) of this title shall not apply to such merger;

(7) the Commissioner shall approve the articles of merger if the Commissioner finds that the merger will promote the general good of the State in conformity with those standards set forth in subdivision 6006(d)(2) of this title. If the Commissioner approves the articles of merger, the Commissioner shall indorse the Commissioner's approval thereon and the surviving insurer shall present the same to the Secretary of State at the Secretary of State's office;

(8) notwithstanding section 6004 of this title, the Commissioner may permit the formation, without surplus, of a captive insurance company organized as a reciprocal insurer, into which an existing captive insurance company may be merged for the purpose of facilitating a transaction under this section; provided, however, that there shall be no more than one authorized insurance company surviving such merger; and

(9) an alien insurer may be a party to a merger authorized under subsection (a) of this section; provided, that the requirements for a merger between a domestic and a foreign insurer under section 3431 of this title shall apply to a merger between a domestic 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.

(e) A conversion or merger under this section shall have all of the effects set forth in subdivisions 3430(3), (4), and (5) of this title, to the extent such effects are not inconsistent with the provisions of this chapter.
8 V.S.A. § 4495 — VT Code / Title 8 / Chapter 121 / Section 4495
§ 4495. Examination of domestic societies
Status: in_force

The Commissioner of Financial Regulation, or any person he or she may appoint, shall have the power of visitation and examination into the affairs of any domestic society, and he or she shall make the examination at least once in every three years. He or she may employ assistants for the purpose of the examination, and he or she, or any person he or she may appoint, shall have free access to all books, papers, and documents that relate to the business of the society. The minutes of the proceedings of the supreme legislative or governing body and of the board of directors or corresponding body of a society shall be in the English language. In making an examination, the Commissioner of Financial Regulation may summon and qualify as witnesses under oath and examine its officers, agents, and employees or other persons in relation to the affairs, transactions, and condition of the society. A summary of the report of the Commissioner of Financial Regulation and such recommendations or statements of the Commissioner of Financial Regulation as may accompany the report, shall be read at the first meeting of the board of directors or corresponding body of the society following the receipt thereof and, if directed so to do by the Commissioner of Financial Regulation, shall also be read at the first meeting of the supreme legislative or governing body of the society following the receipt thereof. A copy of the report, recommendations, and statements of the Commissioner of Financial Regulation shall be furnished by the society to each member of the board of directors or other governing body. The expense of each examination and of each valuation, including compensation and actual expense of examiners, shall be paid by the society examined or whose certificates are valued, upon statements furnished by the Commissioner of Financial Regulation.
8 V.S.A. § 19408 — VT Code / Title 8 / Chapter 209 / Section 19408
§ 19408. Petition denied; receiver to wind up affairs
Status: in_force

If the petition is denied, the Commissioner shall apply for a receiver to wind up the affairs of the financial institution, as provided in sections 19301 through 19315 of this title. In that case, the deposits, if any, received after petition filed and the resulting assets shall be administered separately from the other assets and liabilities, and those assets shall be distributed to the depositors by the receiver as soon as possible after his or her appointment and without deduction on account of the expense of the receivership except as provided in section 19407 of this title.
8 V.S.A. § 3425 — VT Code / Title 8 / Chapter 101 / Section 3425
§ 3425. Procedure for consolidation
Status: in_force

Any domestic insurer, subject to the prohibitions of section 3422 of this title, may consolidate with any other insurer or insurers in the following manner:

(1) The board of directors of each insurer shall, by a resolution adopted by a majority vote of the members of such board, approve a joint agreement of consolidation setting forth:

(A) the names of the insurers proposing to consolidate, and the name of the new insurer into which they propose to consolidate, which is hereinafter designated as the new insurer;

(B) the terms and conditions of the proposed consolidation and the mode of carrying the same into effect;

(C) the manner and basis of converting the shares of capital stock of stock insurers into shares or other securities or obligations of the new insurer;

(D) with respect to the new insurer, such provisions as are required to be set forth in original articles of incorporation for insurers formed under this part;

(E) such other provisions with respect to the proposed consolidation as are deemed necessary or desirable.

(2) The agreement of consolidation shall then be submitted to a vote of the shareholders, members, or policyholders, as the case may be, entitled to vote in respect thereof of each insurer in the same manner as provided in section 3424 of this title and this agreement shall be adopted by such insurer upon receiving the affirmative vote of such proportion of the shareholders, members, or policyholders, as provided in section 3427 of this title, and the adoption thereof by directors and by the shareholders, members, or policyholders shall be followed by the same notice to shareholders, members, or policyholders, as the case may be, as provided in section 3424 of this title.

(3) Any shareholder, member, or policyholder, as the case may be, of any such insurer who did not vote in favor of the adoption of the agreement of consolidation, may object to such consolidation in the manner and with the effect provided in sections 3428 and 3429 of this title.

(4) Upon the adoption of the agreement of consolidation it shall again be considered by the board of directors of each insurer a party to the agreement, and, if again approved and the execution of the agreement authorized by such board, the agreement shall be executed all in the same manner and within the same time as provided in subdivision 3424(6) of this title.

(5) Upon the execution of the agreement of consolidation by all of the insurers and parties thereto, articles of consolidation shall be executed and filed, accompanied by the fees prescribed by law in the same manner and form and in such multiple copies as provided in subdivision 3424(7) of this title and shall then be presented to the Commissioner for approval and presentation to the Secretary of State in the manner provided in said subdivision 3424(7) of this title.

(6) Upon the presentation of the articles of consolidation, the Secretary of State, if he or she finds that they conform to law, shall indorse his or her approval on each of the multiple copies of the articles, and, when all fees have been paid as required by law, shall file one copy of the articles of consolidation in his or her office and issue a certificate of consolidation and shall return the remaining copies of the articles bearing the indorsement of his or her approval, together with the certificate of consolidation, to the new insurer, or its representatives.

(7) The new insurer shall obtain a certified copy of the certificate of consolidation and incorporation from the Secretary of State and file the same with the Commissioner, accompanied by a copy of the articles of consolidation bearing the indorsement of the approval of the Secretary of State.
8 V.S.A. § 6042 — VT Code / Title 8 / Chapter 141 / Section 6042
§ 6042. Definitions
Status: in_force

As used in this subchapter, unless the context requires otherwise:

(1) “Alien captive insurance company” means any insurance company formed to write insurance business for its parents and affiliates and licensed pursuant to the laws of an alien jurisdiction that imposes statutory or regulatory standards in a form acceptable to the Commissioner on companies transacting the business of insurance in such jurisdiction.

(2) “Branch business” means any insurance business transacted by a branch captive insurance company in this State.

(3) “Branch captive insurance company” means any alien captive insurance company licensed by the Commissioner to transact the business of insurance in this State through a business unit with a principal place of business in this State.

(4) “Branch operations” means any business operations of a branch captive insurance company in this State.
8 V.S.A. § 3916 — VT Code / Title 8 / Chapter 105 / Section 3916
§ 3916. Name, status, and powers
Status: in_force

Corporations to which certificates of authority are so issued shall be known as cooperative insurance corporations and may write the kinds of insurance enumerated in subdivisions 3301(a)(2)-(8), and (a)(10) of this title, provided the corporation's surplus shall not be less than $500,000.00 and provided that such company shall first secure approval from the Commissioner to do so, which approval may be upon such terms and conditions as the Commissioner may prescribe.
8 V.S.A. § 7157 — VT Code / Title 8 / Chapter 149 / Section 7157
§ 7157. Insurance producer training
Status: in_force

(a) An insurance producer shall not sell, solicit, or negotiate a pet insurance product until after the producer is appropriately licensed and has completed the required training identified in subsection (c) of this section.

(b) An insurer shall ensure that its producers are trained under subsection (c) of this section and that its producers have been appropriately trained on the coverages and conditions of its pet insurance products.

(c) The training required under this section shall include information on the following topics:

(1) preexisting conditions and waiting periods;

(2) the differences between pet insurance and noninsurance wellness programs;

(3) hereditary disorders, congenital anomalies or disorders, and chronic conditions and how pet insurance policies interact with those conditions or disorders; and

(4) rating, underwriting, renewal, and other related administrative topics.

(d) The satisfaction of the training requirements of another state that are substantially similar to the training requirements in subsection (c) of this section shall be deemed to satisfy the training requirements in Vermont.
8 V.S.A. § 6048m — VT Code / Title 8 / Chapter 141 / Section 6048m
§ 6048m. Delinquency
Status: in_force

(a) Except as otherwise provided in this section, the provisions of chapter 145 of this title shall apply in full to a special purpose financial insurance company.

(b) Upon any order of supervision, rehabilitation, or liquidation of a special purpose financial insurance company, the receiver shall manage the assets and liabilities of the special purpose financial insurance company pursuant to the provisions of this subchapter.

(c) Amounts recoverable by the receiver of a special purpose financial insurance company under a reinsurance contract shall not be reduced or diminished as a result of the entry of an order of conservation, rehabilitation, or liquidation with respect to a ceding insurer, notwithstanding any provision in the contracts or other documentation governing the special purpose financial insurance company securitization.

(d) Notwithstanding the provisions of chapter 145 of this title or any other law of this State:

(1) An application or petition or a temporary restraining order or injunction issued pursuant to the provisions of chapter 145 of this title with respect to a ceding insurer does not prohibit the transaction of business by a special purpose financial insurance company, including any payment by a special purpose financial insurance company made with respect to a special purpose financial insurance company security, or any action or proceeding against a special purpose financial insurance company or its assets.

(2) The commencement of a summary proceeding with respect to a special purpose financial insurance company and any order issued by the court in such summary proceeding shall not prohibit payments by a special purpose financial insurance company and shall not prohibit the special purpose financial insurance company from taking any action required to make such payments, provided such payments are made:

(A) pursuant to a special purpose financial insurance company security or reinsurance contract; and

(B) consistent with the special purpose financial insurance company's plan of operation and any order issued to the special purpose financial insurance company pursuant to subsection 6048d(b) of this subchapter, as either is amended from time to time.

(3) A receiver of a ceding insurer may not void a nonfraudulent transfer by a ceding insurer to a special purpose financial insurance company of money or other property made pursuant to a reinsurance contract.

(4) A receiver of a special purpose financial insurance company may not void a nonfraudulent transfer by the special purpose financial insurance company of money or other property:

(A) made to a ceding insurer pursuant to a reinsurance contract or made to or for the benefit of any holder of a special purpose financial insurance company security with respect to the special purpose financial insurance company security; and

(B) made consistent with the special purpose financial insurance company's plan of operation and any order issued to the special purpose financial insurance company pursuant to subsection 6048d(b) of this subchapter, as either is amended from time to time.

(e) With the exception of the fulfillment of the obligations under a reinsurance contract and notwithstanding another provision of this subchapter or other laws of this State, the assets of a special purpose financial insurance company, including assets held in trust, on a funds-withheld basis, or in any other arrangement to secure the special purpose financial insurance company's obligations under a reinsurance contract, shall not be consolidated with or included in the estate of a ceding insurer in any delinquency proceeding against the ceding insurer pursuant to the provisions of this subchapter for any purpose including distribution to creditors of the ceding insurer.
8 V.S.A. § 5102b — VT Code / Title 8 / Chapter 139 / Section 5102b
§ 5102b. Solvency protections
Status: in_force

(a) Before issuing any certificate of authority, the Commissioner shall require that the health maintenance organization have an initial net worth of $1,500,000.00 and shall thereafter maintain the minimum net worth required under subsection (b) of this section.

(b) Every health maintenance organization must maintain a minimum net worth equal to the greater of:

(1) $1,500,000.00;

(2) two percent of annual premium revenues as reported on the most recent annual financial statement filed with the Commissioner on the first $150,000,000.00 of premium plus one percent of annual premium on the premium in excess of $150,000,000.00;

(3) an amount equal to the sum of three months uncovered expenditures as reported on the most recent financial statement filed with the Commissioner; or

(4) an amount equal to the sum of 10 percent of annual health care expenditures related to its Vermont business except those paid on a capitated basis or managed hospital payment basis as reported on the most recent financial statement filed with the Commissioner plus four percent of annual hospital expenditures related to its Vermont business paid on a managed hospital payment basis as reported on the most recent financial statement filed with the Commissioner.

(c)(1) Unless otherwise provided in subdivisions (2) through (6) of this subsection, each health maintenance organization shall deposit with the State Treasurer for the benefit of all members of the health maintenance organization cash, securities listed by the Securities Valuation Office of the National Association of Insurance Commissioners or clean, irrevocable, unconditional letters of credit, issued or confirmed by a qualified U.S. institution, approved by the Commissioner, or other security or collateral acceptable to the Commissioner, which at all times shall have a value of not less than the greater of $300,000.00 or 50 percent of the amount provided for in subdivision (b)(4) of this section or such other amount as the Commissioner may require. The health maintenance organization shall, on or before April 1 of each calendar year, calculate the amount of the deposit required under this section and shall deposit with the State Treasurer any additional amount required to meet the minimum required under this subsection.

(2) A health maintenance organization that is in operation on May 21, 1993 shall make a deposit equal to one-half of the amount required by the Commissioner under this subsection within 30 days of May 21, 1993. On or before the first day of the next full calendar year, the health maintenance organization shall make a deposit equal to one-half the amount required by the Commissioner under this subsection.

(3) The deposit shall be an admitted asset of the health maintenance organization in the determination of net worth.

(4) All income from deposits shall be an asset of the organization. A health maintenance organization that has made a securities deposit may withdraw that deposit or any part thereof after making a substitute deposit of cash, securities listed by the Securities Valuation Office of the National Association of Insurance Commissioners, or any combination of these or other security of equal amount and value. Any securities deposited under this section shall be approved by the Commissioner before being deposited or substituted.

(5) The Commissioner may order the deposits of designated reserves to be used for the protection of the health maintenance organization's members and the continuation of health care services to members of a health maintenance organization in the event the Commissioner takes any actions under chapter 145 of this title. The Commissioner may use the deposit for administrative costs directly attributable to the proceeding. If the health maintenance organization is placed in receivership or liquidation, the deposit shall be an asset subject to the provisions of chapter 145 of this title.

(6) In lieu of any other requirement of this subsection, the Commissioner may accept the segregation for use in this State of designated reserves established by the health maintenance organization under the laws of another jurisdiction, provided that such reserves are found to be adequate by the Commissioner to meet the purpose of this section and the domiciliary jurisdiction approves the commitment of such reserves for use by the Commissioner.

(7) In lieu of any other requirement of this subsection, the Commissioner may accept any instrument, surety, or other insurance policy found to be adequate to meet the purposes of this section.

(d) Every contract between a health maintenance organization and a participating provider of health care services shall be in writing and shall require that in the event the health maintenance organization fails to pay for health care services as set forth in the contract, the member shall not be liable to the provider for any sums owed by the health maintenance organization.

(e) If the Commissioner determines that the premiums received by a health maintenance organization for its Vermont members exceed $2,000,000.00 for any calendar year or that the health maintenance organization was incorporated in a state without solvency protections that are substantially equivalent to those offered under this chapter, the Commissioner may order that Vermont contracts be conducted through an affiliate or subsidiary corporation incorporated under Vermont law.

(f) The Commissioner shall require that each health maintenance organization have a plan for handling its impairment or insolvency that allows for continuation of benefits for the duration of the contract period for which premiums have been paid and continuation of benefits to members who are confined on the date of impairment or insolvency in an inpatient facility until their discharge or expiration of benefits. In considering such a plan, the Commissioner may require:

(1) the health maintenance organization to procure insurance to cover the expenses to be paid for continued benefits after an insolvency;

(2) provisions in provider contracts that obligate the provider to provide services for the duration of the period after the health maintenance organization's insolvency for which premium payment has been made or until the member has been discharged from inpatient facilities, whichever comes first;

(3) insolvency reserves;

(4) acceptable letters of credit; and

(5) any other arrangements to ensure that benefits are continued in accordance with this subsection.

(g) If at any time uncovered expenditures exceed 10 percent of total health care expenditures, the Commissioner may grant emergency rate increases and require a health maintenance organization to build an uncovered expenditures insolvency deposit with the State Treasurer in an amount not to exceed 120 percent of the health maintenance organization's outstanding liability for uncovered expenditures for members in this State, including incurred but not reported claims. The deposit under this section shall be calculated as of the first day of the month and maintained for the remainder of the month. The amounts deposited under this subsection shall be in addition to the deposit required under subsection (c) of this section.

(h) The deposit required under subsection (g) of this section may be used only as provided under this subsection. The Commissioner may order the deposit to be used for administrative costs associated with administering the deposit and for the payment of claims for uncovered expenditures of members of the Vermont portion of its business. Claims for uncovered expenditures shall be paid from the deposit and other available assets on a pro rata basis. The Commissioner may order partial distributions pending final distribution. Any amount of the deposit remaining after final distribution under this section shall be paid over to the liquidator or rehabilitator of the health maintenance organization and may be distributed in accordance with chapter 145 of this title.

(i)(1) In the event a health maintenance organization is declared insolvent under chapter 145 of this title, the Commissioner may order all other entities licensed or authorized under this title that participated in the enrollment process with the insolvent health maintenance organization at a group's last regular enrollment period to offer such group's members a 30-day enrollment period commencing upon the date the insolvency is declared by a court of competent jurisdiction. Each such entity shall notify and offer such members of the insolvent health maintenance organization the same coverages and rates that it had offered to the members of the group at its last regular enrollment period.

(2) If no other such entity had been offered to some groups enrolled in the insolvent health maintenance organization, or if the Commissioner determines that all other health maintenance organizations lack sufficient health care delivery resources to ensure that health care services will be available and accessible to all of the group members of the insolvent health maintenance organization, the Commissioner may allocate equitably the insolvent health maintenance organization's group contracts for such groups among all health maintenance organizations that operate within a portion of the insolvent health maintenance organization's service area, taking into consideration the health care delivery resources of each health maintenance organization. Each health maintenance organization to which a group or groups are so allocated shall notify and offer such group or groups the health maintenance organization's existing coverage that is most similar to each group's coverage with the insolvent health maintenance organization at rates determined in accordance with the successor health maintenance organization's existing rating methodology.

(3) The Commissioner may also allocate equitably the insolvent health maintenance organization's nongroup members who are unable to obtain other coverage among all health maintenance organizations that operate within a portion of the insolvent health maintenance organization's service area, taking into consideration the health care delivery resources of each such health maintenance organization. Each health maintenance organization to which nongroup members are allocated shall notify and offer such nongroup members the health maintenance organization's existing coverage for individual or conversion coverage as determined by the type of coverage held in the insolvent health maintenance organization but at rates determined in accordance with the successor health maintenance organization's existing rating methodology. Successor health maintenance organizations that do not offer direct nongroup enrollment may aggregate all of the allocated nongroup members into one group for rating and coverage purposes. Coverage made available under this subsection shall be effective on the date the insolvency is declared.

(j) Any rehabilitation, liquidation, or conservation of a health maintenance organization shall be deemed to be the rehabilitation, liquidation, or conservation of an insurance company and shall be conducted under the supervision of the Commissioner pursuant to chapter 145 of this title.

(k)(1) Whenever the Commissioner determines that the financial condition of any health maintenance organization is such that its continued operation might be hazardous to its members, creditors, or the general public, or that it has violated any provision of this chapter, the Commissioner may, after notice and hearing, order the health maintenance organization to take such action as may be reasonably necessary to rectify such condition or violation, including one or more of the following:

(A) reduce the total amount of present and potential liability for benefits through reinsurance or other method approved by the Commissioner;

(B) reduce the volume of new business accepted;

(C) suspend or limit the writing of new business for a period of time;

(D) increase the health maintenance organization's capital and surplus by contribution; or

(E) take such other steps as the Commissioner may deem appropriate under the circumstances.

(2) If the Commissioner finds that member protection requires emergency action, the Commissioner may summarily order the health maintenance organization to take any action described in subdivision (1) of this subsection, provided that notice and hearing is issued as soon as practicable after such action is taken.

(l) The Commissioner shall adopt rules that establish solvency standards for provider-sponsored networks, including provider-sponsored organizations, for the Medicare Advantage program, as described in 42 U.S.C. § 1395w-21, in conformance with the solvency standards established by the Secretary of Health and Human Services under 42 U.S.C. § 1395w-26. Provider-sponsored networks shall be licensed under this chapter to offer a Medicare Advantage plan by complying with the solvency rules adopted under this subsection; except that a provider-sponsored network that offers any health plan other than or in addition to a Medicare Advantage plan shall comply with the solvency standards of this chapter instead of those adopted specifically for Medicare Advantage plans under this subsection. A provider-sponsored network licensed under this chapter shall not be required to offer any insurance product apart from Medicare Advantage. As used in this subsection, “provider-sponsored network” or “provider-sponsored organization” shall have the same definition as in 42 U.S.C. § 1395w-25(d).

(m) The Commissioner may enter into contracts with the Secretary of Health and Human Services for the administration of the Medicare Advantage program.
8 V.S.A. § 4819 — VT Code / Title 8 / Chapter 131 / Section 4819
§ 4819. Duties of insurers and reinsurers
Status: in_force

(a) Insurers utilizing managing general agents.

(1) An insurer shall have on file an independent financial examination, in a form acceptable to the Commissioner, of each managing general agent with which it has done business.

(2) If a managing general agent establishes loss reserves, the insurer shall annually obtain the opinion of an actuary attesting to the adequacy of loss reserves established for losses incurred and outstanding on business produced by the managing general agent. The requirements of this subdivision are in addition to any other required loss reserve certification.

(3) At least semiannually an insurer shall conduct an on-site review of the underwriting and claims processing operations of the managing general agent.

(4) Binding authority for all reinsurance contracts other than those permitted in this chapter or participation in insurance or reinsurance syndicates shall rest with an officer of the insurer, who shall not be affiliated with the managing general agent.

(5) Within 30 days of entering into or termination of a contract with a managing general agent, the insurer shall provide written notification of such appointment or termination to the Commissioner. Notices of appointment of a managing general agent shall include a statement of duties that the applicant is expected to perform on behalf of the insurer, the lines of insurance for which the applicant is to be authorized to act, and any other information the Commissioner may request.

(6) An insurer shall review its books and records each quarter to determine if any producer as defined by this chapter has become a managing general agent as defined in this chapter. If the insurer determines that a producer has become a managing general agent, the insurer shall promptly notify the producer and the Commissioner of such determination and the insurer and producer must fully comply with the provisions of this subchapter within 30 days.

(7) An insurer shall not appoint to its board of directors an officer, director, employee, subproducer, or controlling shareholder of any of its managing general agents, unless the appointment is permitted by the applicable sections of chapter 101, subchapter 13 of this title concerning insurance holding companies or, if applicable, the sections of this chapter concerning business transacted with broker controlled property casualty insurers.

(b) Insurers utilizing the services of a reinsurance intermediary-broker.

(1) An insurer shall not engage the services of any person to act as a reinsurance intermediary-broker on its behalf unless such person is licensed as required by this chapter.

(2) An insurer may not employ an individual who is employed by a reinsurance intermediary-broker with which it transacts business, unless such reinsurance intermediary-broker is under common control with the insurer and subject to chapter 101, subchapter 13 of this title.

(3) The insurer shall annually obtain a copy of statements of the financial condition of each reinsurance intermediary-broker with which it transacts business.

(c) Reinsurers utilizing the services of a reinsurance intermediary-manager.

(1) A reinsurer shall not engage the services of any person to act as a reinsurance intermediary-manager on its behalf unless such person is licensed as required by this chapter.

(2) The reinsurer shall annually obtain a copy of statements of the financial condition of each reinsurance intermediary-manager that such reinsurer has engaged prepared by an independent certified accountant in a form acceptable to the Commissioner.

(3) If a reinsurance intermediary-manager establishes loss reserves, the reinsurer shall annually obtain the opinion of an actuary attesting to the adequacy of loss reserves established for losses incurred and outstanding on business produced by the reinsurance intermediary-manager. This opinion shall be in addition to any other required loss reserve certification.

(4) Binding authority for all retrocessional contracts or participation in reinsurance syndicates shall rest with an officer of the reinsurer who shall not be affiliated with the reinsurance intermediary-manager.

(5) Within 30 days of termination of a contract with a reinsurance intermediary-manager, the reinsurer shall provide written notification of such termination to the Commissioner.

(6) A reinsurer shall not appoint to its board of directors, any officer, director, employee, controlling shareholder, or subproducer of its reinsurance intermediary-manager. This subsection shall not apply to relationships governed by chapter 101, subchapter 13 of this title.

(7) At least semiannually, a reinsurer shall conduct an on-site review of the underwriting and claims processing operations of the reinsurance intermediary-manager.
8 V.S.A. § 4798 — VT Code / Title 8 / Chapter 131 / Section 4798
§ 4798. Term of license
Status: in_force

(a) Except as provided by subsections (b) and (d) of this section, all licenses issued pursuant to this subchapter shall continue in force not longer than 24 months.

(b)(1) All licenses of insurance producers and limited lines producers issued pursuant to this subchapter shall expire as of 12:01 a.m. o'clock on the first day of April of the odd-numbered year next following date of issuance; and

(2) all other license types issued pursuant to this subchapter shall expire as of 12:01 a.m. o'clock on the first day of April of the even-numbered year following the date of issuance; unless

(3) the licensee prior to the expiration of the license has filed with the Commissioner, on forms prescribed and furnished by the Commissioner, a request for renewal of such license for an ensuing 24-month period. Such request must be accompanied by payment of the renewal fee as provided in subdivision 4800(2) of this title.

(c) In order to spread continuation of insurance producer and limited lines producer appointment renewals with reasonable uniformity throughout the calendar year, the Commissioner may fix a date, “insurer's anniversary,” upon which all such renewals of persons licensed under this chapter who have been appointed by that insurer shall be subject to renewal as to that particular insurer.

(d) Producer appointments shall expire as of 12:01 a.m. on the first day of June following the date of issuance. Annually, before the expiration of producer appointments, the Commissioner shall provide each insurer with an alphabetical appointment renewal list of the names for all of its producers in the State. Each insurer shall return the list and identify the producer appointments to be renewed in a manner and time specified by the Commissioner. Payment of the annual producer appointment renewal fee, as specified in section 4800 of this title, shall be made in a manner and time specified by the Commissioner.
8 V.S.A. § 4806 — VT Code / Title 8 / Chapter 131 / Section 4806
§ 4806. Suspension, revocation, or termination of license
Status: repealed

(a) The Commissioner shall promptly notify all appointing insurers, where applicable, and the licensee regarding any suspension, revocation, or termination of license by the Commissioner.

(b) Upon suspension, revocation, or termination of the license of a resident of this State, the Commissioner shall notify the central office of the National Association of Insurance Commissioners and the commissioner of each state for whom the licensee has executed a certificate as provided for in accordance with subdivision 4800(3) of this title.

(c)-(e) [Repealed.]
8 V.S.A. § 3422 — VT Code / Title 8 / Chapter 101 / Section 3422
§ 3422. Mutual insurers-Prohibitions
Status: in_force

A domestic mutual insurer shall not merge or consolidate with a stock insurer where the surviving corporation will be a stock insurer.
8 V.S.A. § 4463 — VT Code / Title 8 / Chapter 121 / Section 4463
§ 4463. Representative form of government defined
Status: in_force

A society shall be deemed to have a representative form of government when:

(1) it provides in its constitution or laws for a supreme legislative or governing body, composed of representatives elected either by the members or by delegates elected directly or indirectly by the members, together with such other members of the body as may be prescribed by the society's constitution and laws;

(2) the representatives elected constitute a majority in number and have not less than two-thirds of the votes nor less than the votes required to amend its constitution and laws;

(3) the meetings of the supreme legislative or governing body and the election of officers, representatives, or delegates are held as often as once in four calendar years;

(4) each insured member is eligible for election to act or serve as a delegate to the meeting;

(5) the society has a board of directors charged with the responsibility for managing its affairs in the interim between meetings of its supreme legislative or governing body, subject to control by the body and having powers and duties delegated to it in the constitution or laws of the society;

(6) the board of directors is elected by the supreme legislative or governing body, except in case of filling a vacancy in the interim between meetings of the body;

(7) the officers are elected either by the supreme legislative or governing body or by the board of directors; and

(8) the members, officers, representatives, or delegates may not vote by proxy.
8 V.S.A. § 4708 — VT Code / Title 8 / Chapter 128 / Section 4708
§ 4708. Severability
Status: in_force

If any provision of this chapter or the application of such provision to any person or circumstance shall be held invalid by a court of competent jurisdiction, the remainder of the chapter and the application of its provisions to a person or circumstance other than that or those as to which it is held invalid, shall not be affected thereby.
8 V.S.A. § 6060 — VT Code / Title 8 / Chapter 142 / Section 6060
§ 6060. Duties of agent or brokers to obtain license
Status: in_force

(a) Purchasing groups.

(1) No person, firm, association, or corporation shall act or aid in any manner in soliciting, negotiating, or procuring liability insurance in this State for a purchasing group from an authorized insurer or a risk retention group chartered in a state unless such person, firm, association, or corporation is licensed as an insurance agent or broker in accordance with chapter 131 of this title.

(2) No person, firm, association, or corporation shall act or aid in any manner in soliciting, negotiating, or procuring liability insurance coverage in this State for any member of a purchasing group under a purchasing group's policy unless such person, firm, association, or corporation is licensed as an insurance agent or broker in accordance with chapter 131 of this title.

(3) No person, firm, association, or corporation shall act or aid in any manner in soliciting, negotiating, or procuring liability insurance from an insurer not authorized to do business in this State on behalf of a purchasing group located in this State unless such person, firm, association, or corporation is licensed as a surplus lines broker or excess line broker in accordance with chapter 131 of this title.

(b) For purposes of acting as an agent or broker for a purchasing group pursuant to subsection (a) of this section, the requirement of residence in this State shall not apply.

(c) Every person, firm, association, or corporation licensed pursuant to the provisions of chapter 131 of this title, on business written through a purchasing group, shall inform each prospective insured of the provisions of the notice required by subsection 6057(c) of this title.
8 V.S.A. § 3925 — VT Code / Title 8 / Chapter 105 / Section 3925
§ 3925. Bylaws; compulsory provisions
Status: in_force

The bylaws of a cooperative insurance corporation to which a certificate of authority is issued shall include substantially the following provisions:

(1) The corporate powers of such corporation shall be exercised by a board of directors, who shall be not less than five in number. Such directors shall be divided into classes and a portion only elected each year. They shall be elected for a term of not more than four years each and shall choose a president, a secretary, and such other officers as may be deemed necessary. After the first year, the directors shall be chosen at an annual meeting to be held on the second Tuesday of January, unless some other day is designated in such bylaws, at which meeting each person insured shall have one vote and may be entitled to vote by proxy under such rules and regulations as may be prescribed by the bylaws.

(2) Such corporation shall keep proper books, including a policy register, in which the secretary shall enter the complete record of all its transactions and those of the board of directors and executive committee. Such books shall at all times show fully and truly the condition, affairs, and business of such corporation and shall be open for inspection by every person insured, each day from nine o'clock in the forenoon to four o'clock in the afternoon, Saturdays, Sundays, and legal holidays excepted.

(3) If authorized as an assessment cooperative insurance corporation as outlined in subsection 3920(a) of this title, such corporation may assess for the purposes specified in section 3927 of this title, and the bylaws shall specify the manner of giving notice of such assessments, which may be either personal or by mail, and, if by mail, shall be deemed complete if such notice is deposited, postage prepaid, in the post office at the place where the principal office of the corporation is located, directed to the person insured at his or her last known place of residence or business. A person insured who neglects or refuses to pay his or her assessments, for that reason or for any other reason satisfactory to the board of directors or its executive committee, may be excluded from such corporation and, when thus excluded, the secretary shall cancel or withdraw his or her policy or policies, subject to the cancellation provisions in sections 3879 through 3882 and chapter 113, subchapter 2 of this title, provided that such person shall remain liable for his or her pro rata share of losses and expenses incurred on or before the date of his or her exclusion and for the penalty herein provided, in case an action is brought against him or her. If a member of such corporation is so excluded and his or her policy so canceled, the secretary shall forthwith enter such cancellation and the date thereof on the records kept in the office of the corporation and serve notice of such cancellation on the person so excluded, as provided herein for the service of notice of assessment. However, in such event, the person so excluded or whose policy is so canceled shall be entitled to the repayment of an equitable portion of the unearned paid premium on such policy. The officers of such corporation shall proceed to collect all assessments within 30 days after the expiration of the notice to pay the same. Neglect or refusal on their part so to proceed or to perform any of the duties imposed on them by law shall render them individually liable for the amount lost to any person, due to such neglect or refusal, and an action may be maintained by such person against such officers to collect such amount. An action may be brought by the corporation against a person insured therein to recover all assessments that he or she may neglect or refuse to pay, and there may be recovered from him or her in such action both the amount so assessed, with lawful interest thereon, and, as a penalty for such neglect or refusal, 50 percent of such assessment in addition thereto.

(4) Any person insured by an assessment cooperative insurance corporation may withdraw therefrom at any time by giving written notice to the corporation, stating the date of withdrawal, paying his or her share of all claims then existing against such corporation, and surrendering his or her policy or policies.

(5) Any person insured by a nonassessment cooperative insurance corporation may withdraw from it at any time by giving written notice to the corporation stating the date of withdrawal and surrendering his or her policy or policies.

(6) Persons residing or owning property within any state where the corporation is authorized to do business may be insured upon the same terms and conditions as original members and such other terms as may be prescribed in the bylaws of the corporation.

(7) The bylaws of such corporation may be amended at any time.
8 V.S.A. § 19303 — VT Code / Title 8 / Chapter 209 / Section 19303
§ 19303. Bonding of receiver
Status: in_force

The receiver shall give bonds to the State with sufficient surety, in a sum fixed by the court, for the faithful discharge of his or her duties and for the due accounting of the monies received by the receiver.
8 V.S.A. § 7067 — VT Code / Title 8 / Chapter 145 / Section 7067
§ 7067. Voidable preferences and liens
Status: in_force

(a)(1) A preference is a transfer of any of the property of an insurer to or for the benefit of a creditor, for or on account of an antecedent debt, made or suffered by the insurer within one year before the filing of a successful petition for liquidation under this chapter, the effect of which transfer may be to enable the creditor to obtain a greater percentage of this debt than another creditor of the same class would receive. If a liquidation order is entered while the insurer is already subject to a rehabilitation order, then such transfers shall be deemed preferences if made or suffered within one year before the filing of the successful petition for rehabilitation, or within two years before the filing of the successful petition for liquidation, whichever time is shorter.

(2) A preference may be avoided by the liquidator if:

(A) the insurer was insolvent at the time of the transfer of property;

(B) the transfer of property was made within four months before the filing of the petition;

(C) the creditor receiving it or to be benefited by it or the creditor's agent acting with reference to it had, at the time when the transfer of property was made, reasonable cause to believe that the insurer was insolvent or was about to become insolvent; or

(D) the creditor receiving transferred property was an officer, or any employee or attorney or other person who was in fact in a position of comparable influence in the insurer to an officer whether or not he or she held such position, or any shareholder holding directly or indirectly more than five per centum of any class of any equity security issued by the insurer, or any other person, firm, corporation, association, or aggregation of persons with whom the insurer did not deal at arm's length.

(3) Where the preference is voidable, the liquidator may recover the property or, if it has been converted, its value from any person who has received or converted the property; except where a bona fide purchaser or lienor has given less than fair equivalent value, the purchaser or lienor shall have a lien upon the property to the extent of the consideration actually given by the purchaser or lienor. Where a preference by way of lien or security title is voidable, the court may on due notice order the lien or title to be preserved for the benefit of the estate, in which event the lien or title shall pass to the liquidator.

(4) Notwithstanding subdivision (2) of this subsection, or any other provision of this chapter to the contrary, no receiver or any other person shall avoid any preference arising under or in connection with any pledge, security, credit, collateral, loan, advances, reimbursement, or guarantee agreement or arrangement, or any similar agreement, arrangement, or other credit enhancement to which a federal home loan bank, as defined in section 7033 of this title, is a party.

(b)(1) A transfer of property other than real property shall be deemed to be made or suffered when it becomes so far perfected that no subsequent lien obtainable by legal or equitable proceedings on a simple contract could become superior to the rights of the transferee.

(2) A transfer of real property shall be deemed to be made or suffered when it becomes so far perfected that no subsequent bona fide purchaser from the insurer could obtain rights superior to the rights of the transferee.

(3) A transfer that creates an equitable lien shall not be deemed to be perfected if there are available means by which a legal lien could be created.

(4) A transfer not perfected prior to the filing of a petition for liquidation shall be deemed to be made immediately before the filing of the successful petition.

(5) The provisions of this subsection apply whether or not there are or were creditors who might have obtained liens or persons who might have become bona fide purchasers.

(c)(1) A lien obtainable by legal or equitable proceedings upon a simple contract is one arising in the ordinary course of such proceedings upon the entry or docketing of a judgment or decree, or upon attachment, garnishment, execution, or like process, whether before, upon, or after judgment or decree and whether before or upon levy. It does not include liens that under applicable law are given a special priority over other liens that are prior in time.

(2) A lien obtainable by legal or equitable proceedings could become superior to the rights of a transferee, or a purchaser could obtain rights superior to the rights of a transferee within the meaning of subsection (b) of this section, if such consequences would follow only from the lien or purchase itself, or from the lien or purchase followed by any step wholly within the control of the respective lienholder or purchaser, with or without the aid of ministerial action by public officials. Such a lien could not, however, become superior and such a purchase could not create superior rights for the purpose of subsection (b) of this section through any acts subsequent to the obtaining of such a lien or subsequent to such a purchase that requires the agreement or concurrence of any third party or that requires any further judicial action or ruling.

(d) A transfer of property for or on account of a new and contemporaneous consideration that is deemed under subsection (b) of this section to be made or suffered after the transfer because of delay in perfecting it does not thereby become a transfer for or on account of an antecedent debt if any acts required by the applicable law to be performed in order to perfect the transfer as against liens or bona fide purchasers' rights are performed within 21 days or any period expressly allowed by the law, whichever is less. A transfer to secure a future loan, if such a loan is actually made, or a transfer that becomes security for a future loan, shall have the same effect as a transfer for or on account of a new and contemporaneous consideration.

(e) If any lien deemed voidable under subdivision (a)(2) of this section has been dissolved by the furnishing of a bond or other obligation, the surety on which has been indemnified directly or indirectly by the transfer of or the creation of a lien upon any property of an insurer before the filing of a petition under this chapter that results in a liquidation order, the indemnifying transfer or lien shall also be deemed voidable.

(f) The property affected by any lien deemed voidable under subsections (a) and (e) of this section shall be discharged from such lien, and that property and any of the indemnifying property transferred to or for the benefit of a surety shall pass to the liquidator, except that the court may on due notice order any such lien to be preserved for the benefit of the estate and the court may direct that such conveyance be executed as may be proper or adequate to evidence the title of the liquidator.

(g) The Superior Court of Washington County shall have summary jurisdiction of any proceeding by the liquidator to hear and determine the rights of any parties under this section. Reasonable notice of hearing in the proceeding shall be given to all parties in interest, including the obligee of a releasing bond or other like obligation. Where an order is entered for the recovery of indemnifying property in kind or for the avoidance of an indemnifying lien, the court, upon application of any party in interest, shall in the same proceeding ascertain the value of the property or lien, and if the value is less than the amount for which the property is indemnity or less than the amount of the lien, the transferee or lienholder may elect to retain the property or lien upon payment of its value, as ascertained by the court, to the liquidator, within such reasonable times as the court shall fix.

(h) The liability of the surety under a releasing bond or other like obligation shall be discharged to the extent of the value of the indemnifying property recovered or the indemnifying lien nullified and avoided by the liquidator, or where the property is retained under subsection (g) of this section to the extent of the amount paid to the liquidator.

(i) If a creditor has been preferred, and afterward in good faith gives the insurer further credit without security of any kind, for property that becomes a part of the insurer's estate, the amount of the new credit remaining unpaid at the time of the petition may be set off against the preference that would otherwise be recoverable.

(j) If an insurer shall, directly or indirectly, within four months before the filing of a successful petition for liquidation under this chapter, or at any time in contemplation of a proceeding to liquidate it, pay money or transfer property to an attorney for services rendered or to be rendered, the transactions may be examined by the court on its own motion or shall be examined by the court on petition of the liquidator and shall be held valid only to the extent of a reasonable amount to be determined by the court, and the excess may be recovered by the liquidator for the benefits of the estate provided that where the attorney is in a position of influence in the insurer or an affiliate thereof payment of any money or the transfer of any property to the attorney for services rendered or to be rendered shall be governed by the provision of subdivision (a)(2)(D) of this section.

(k)(1) Every officer, manager, employee, shareholder, member, subscriber, attorney, or any other person acting on behalf of the insurer who knowingly participates in giving any preference when such person has reasonable cause to believe the insurer is or is about to become insolvent at the time of the preference shall be personally liable to the liquidator for the amount of the preference. It is permissible to infer that there is a reasonable cause to so believe if the transfer was made within four months before the date of filing of this successful petition for liquidation.

(2) Every person receiving any property from the insurer or the benefit thereof as a preference voidable under subsection (a) of this section shall be personally liable therefor and shall be bound to account to the liquidator.

(3) Nothing in this subsection shall prejudice any other claim by the liquidator against any person.
8 V.S.A. § 8010 — VT Code / Title 8 / Chapter 151 / Section 8010
§ 8010. Disclosure
Status: in_force

(a) A provider shall maintain financial records for the facility, including independently audited financial statements, and copies of all inspection reports pertaining to that facility that have been issued by any governmental agency and filed with the provider. A copy of each such report shall be retained in the facility's records for not less than five years from the date the report is filed or issued. Each facility shall also maintain all annual reports and statements that have been filed with the Department or any state, local, or federal agency. The records and information required to be maintained under this section shall be available for review upon request by residents and applicants during normal business hours. Copies of these documents will be provided for a reasonable copying fee.

(b) Notwithstanding the provisions of subsection (a) of this section, records, reports, or documents, which by state or federal law or regulation are deemed confidential, shall not be distributed or made available until such confidential status has expired.

(c) Every provider shall prepare a summary of the most recent audited financial statement, indicating in the summary where the contents of the complete statement may be inspected. A copy of the statement shall be maintained at the facility, and a copy of the summary shall be prominently displayed in the facility.

(d) Proposed changes in policies, programs, and services shall be posted and explained to residents.

(e) Before entering into a contract to furnish continuing care, the provider, or the agent of the provider, shall provide the prospective resident or his or her legal representative with the following information:

(1) a copy of the continuing care contract form;

(2) a summary of the provider's most recent annual financial statement; and

(3) such additional information as may be required by the Department.
8 V.S.A. § 3387 — VT Code / Title 8 / Chapter 101 / Section 3387
§ 3387. Prerequisites to defense of action
Status: in_force

Before any unauthorized foreign or alien insurer shall file or cause to be filed any pleading in any action, suit or proceeding instituted against it, such unauthorized insurer shall:

(1) deposit with the clerk of the court in which such action, suit, or proceeding is pending, cash or securities or file with such clerk a bond with good and sufficient sureties, to be approved by the court, in an amount to be fixed by the court sufficient to secure the payment of any final judgment that may be rendered in such action; or

(2) procure a certificate of authority to transact the business of insurance in this State.
8 V.S.A. § 2253 — VT Code / Title 8 / Chapter 74 / Section 2253
§ 2253. Contracts; disclosures and requirements
Status: in_force

(a) A contract shall be written in a clear and coherent manner using words with common, everyday meanings to enable the average consumer who makes a reasonable effort under ordinary circumstances to read and understand the terms of the contract without having to obtain the assistance of a professional.

(b) Each contract shall include consumer disclosures on the front page. The consumer disclosures shall be in a form prescribed by the Commissioner and shall include:

(1) a description of possible alternatives to a litigation funding contract, including secured or unsecured personal loans, and life insurance policies;

(2) notification that some or all of the funded amount may be taxable;

(3) a description of the consumer's right of rescission;

(4) the total funded amount provided to the consumer under the contract;

(5) an itemization of charges;

(6) the annual percentage rate of return;

(7) the total amount due from the consumer, including charges, if repayment is made any time after the funding contract is executed;

(8) a statement that there are no fees or charges to be paid by the consumer other than what is disclosed on the disclosure form;

(9) in the event the consumer seeks more than one litigation funding contract, a disclosure providing the cumulative amount due from the consumer for all transactions, including charges under all contracts, if repayment is made any time after the contracts are executed;

(10) a statement that the company has no right to make any decisions regarding the conduct of the legal claim or any settlement or resolution thereof and that the right to make such decisions remains solely with the consumer and his or her attorney;

(11) a statement that, if there is no recovery of any money from the consumer's legal claim, the consumer shall owe nothing to the company and that, if the net proceeds of the claim are insufficient to repay the consumer's indebtedness to the company, then the consumer shall owe the company no money in excess of the net proceeds; and

(12) any other statements or disclosures deemed necessary or appropriate by the Commissioner.

(c) Each contract shall include the following provisions:

(1) Definitions of the terms “consumer,” “consumer litigation funding,” and “consumer litigation funding company.”

(2) A right of rescission, allowing the consumer to cancel the contract without penalty or further obligation if, within five business days following the execution of the contract or the consumer's receipt of any portion of the funded amount, the consumer gives notice of the rescission to the company and returns any funds provided to the consumer by the company.

(3) A provision specifying that, in the event of litigation involving the contract and at the election of the consumer, venue shall lie in the Vermont Superior Court for the county where the consumer resides.

(4) An acknowledgment that the consumer is represented by an attorney in the legal claim and has had an opportunity to discuss the contract with his or her attorney.
8 V.S.A. § 4721 — VT Code / Title 8 / Chapter 129 / Section 4721
§ 4721. Purpose
Status: in_force

The purpose of sections 4721-4733 of this title is to regulate trade practices in the business of insurance in accordance with the intent of Congress as expressed in The McCarran-Ferguson Act, 15 U.S.C. §§ 1011-1015, by defining, or providing for the determination of, practices in this State that constitute unfair methods of competition or unfair or deceptive acts or practices and by prohibiting the trade practices so defined or determined.
8 V.S.A. § 7120 — VT Code / Title 8 / Chapter 147 / Section 7120
§ 7120. Posting of plans on website
Status: in_force

The Commissioner shall require that all plans filed with the Department are posted on the Department's website, along with any other notice or other information the Commissioner deems appropriate, excluding any information designated as confidential under subsection 7112(c) of this chapter.
8 V.S.A. § 5021 — VT Code / Title 8 / Chapter 138 / Section 5021
§ 5021. Non-Admitted Insurance Act; short title
Status: in_force

This chapter may be cited as the “Non-Admitted Insurance Act.”
8 V.S.A. § 4813m — VT Code / Title 8 / Chapter 131 / Section 4813m
§ 4813m. Notification to Commissioner of termination
Status: in_force

(a) Termination for cause. An insurer or authorized representative of the insurer that terminates the appointment, employment, contract, or other insurance business relationship with a producer shall notify the Commissioner within 30 days following the effective date of the termination, using a format prescribed by the Commissioner, if the reason for termination is one of the reasons set forth in section 4804 of this title or the insurer has knowledge the producer was found by a court, government body, or self-regulatory organization authorized by law to have engaged in any of the activities in section 4804 of this title. Upon the written request of the Commissioner, the insurer shall provide additional information, documents, records, or other data pertaining to the termination or activity of the producer.

(b) Termination without cause. An insurer or authorized representative of the insurer that terminates the appointment, employment, or contract with a producer for any reason not set forth in section 4804 of this title shall notify the Commissioner within 30 days following the effective date of the termination, using a format prescribed by the Commissioner. Upon written request of the Commissioner, the insurer shall provide additional information, documents, records, or other data pertaining to the termination.

(c) Ongoing notification requirement. The insurer or the authorized representative of the insurer shall promptly notify the Commissioner in a format acceptable to the Commissioner if, upon further review or investigation, the insurer discovers additional information that would have been reportable to the Commissioner in accordance with subsection (a) of this section had the insurer then known of its existence.

(d) Copy of notification to be provided to producer.

(1) Within 15 days after making the notification required by subsections (a), (b), and (c) of this section, the insurer shall mail a copy of the notification to the producer at his or her last known address. If the producer is terminated for cause for any of the reasons listed in section 4804 of this title, the insurer shall provide a copy of the notification to the producer at his or her last known address by certified mail, return receipt requested, postage prepaid or by overnight delivery using a nationally recognized carrier.

(2) Within 30 days after the producer has received the original or additional notification, the producer may file written comments concerning the substance of the notification with the Commissioner. The producer shall, by the same means, simultaneously send a copy of the comments to the reporting insurer, and the comments shall become a part of the Commissioner's file and accompany every copy of a report distributed or disclosed for any reason about the producer as permitted under subsection (f) of this section.

(e) Immunities.

(1) In the absence of actual malice, an insurer, the authorized representative of the insurer, a producer, the Commissioner, or an organization of which the Commissioner is a member and that compiles the information and makes it available to other commissioners or regulatory or law enforcement agencies shall not be subject to civil liability, and a civil cause of action of any nature shall not arise against these entities or their respective agents or employees, as a result of any statement or information required by or provided pursuant to this section or any information relating to any statement that may be requested in writing by the Commissioner from an insurer or producer, or a statement by a terminating insurer or producer to an insurer or producer limited solely and exclusively to whether a termination for cause under subsection (a) of this section was reported to the Commissioner, provided the propriety of any termination for cause under subsection (a) of this section is certified in writing by an officer or authorized representative of the insurer or producer terminating the relationship.

(2) In any action brought against a person that may have immunity under subdivision (1) of this subsection for making any statement required by this section or providing any information relating to any statement that may be requested by the Commissioner, the party bringing the action shall plead specifically in any allegation that subdivision (1) of this subsection does not apply because the person making the statement or providing the information did so with actual malice.

(3) Subdivision (1) or (2) of this subsection shall not abrogate or modify any existing statutory or common law privileges or immunities.

(f) Confidentiality.

(1) Any documents, materials, or other information in the control or possession of the Department of Financial Regulation that is furnished by an insurer, producer, or an employee or agent thereof acting on behalf of the insurer or producer, or obtained by the Commissioner in an investigation pursuant to this section shall be confidential by law and privileged, shall not be subject to 1 V.S.A. chapter 5, shall not be subject to subpoena, and shall not be subject to discovery or admissible in evidence in any private civil action. However, the Commissioner is authorized to use the documents, materials, or other information in the furtherance of any regulatory or legal action brought as a part of the Commissioner's duties.

(2) Neither the Commissioner nor any person who received documents, materials, or other information while acting under the authority of the Commissioner shall be permitted or required to testify in any private civil action concerning any confidential documents, materials, or information subject to subdivision (1) of this subsection.

(3) In order to assist in the performance of the Commissioner's duties under this chapter, the Commissioner may:

(A) share documents, materials, or other information, including the confidential and privileged documents, materials, or information subject to subdivision (1) of this subsection, with other state, federal, and international regulatory agencies, with the National Association of Insurance Commissioners, its affiliates or subsidiaries, and with state, federal, and international law enforcement authorities, provided the recipient agrees to maintain the confidentiality and privileged status of the document, material, or other information;

(B) receive documents, materials, or information, including otherwise confidential and privileged documents, materials, or information, from the National Association of Insurance Commissioners, its affiliates or subsidiaries, and from regulatory and law enforcement officials of other foreign or domestic jurisdictions, and shall maintain as confidential or privileged any document, material, or information received with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material, or information; and

(C) enter into agreements governing sharing and use of information consistent with this subsection.

(4) No waiver of any applicable privilege or claim of confidentiality in the documents, materials, or information shall occur as a result of disclosure to the Commissioner under this section or as a result of sharing as authorized in subdivision (3) of this subsection.

(5) Nothing in this act shall prohibit the Commissioner from releasing final, adjudicated actions, including for cause terminations that are open to public inspection pursuant to 1 V.S.A. chapter 5 to a database or other clearinghouse service maintained by the National Association of Insurance Commissioners, its affiliates or subsidiaries.

(g) Penalties for failing to report. An insurer, the authorized representative of the insurer, or producer that fails to report as required under the provisions of this section or that is found to have reported with actual malice by a court of competent jurisdiction may, after notice and hearing, have its license or certificate of authority suspended or revoked and may be assessed an administrative penalty of $10,000.00.
8 V.S.A. § 3582 — VT Code / Title 8 / Chapter 101 / Section 3582
§ 3582. Definitions
Status: in_force

As used in this subchapter:

(1) “Insurance group” means those insurers and affiliates included within an insurance holding company system as defined in subdivision 3681(6) of this title.

(2) “Insurer” shall have the same meaning as in subdivision 3681(7) of this title.

(3) “NAIC” means the National Association of Insurance Commissioners.

(4) “Own Risk and Solvency Assessment” or “ORSA” or “assessment” means a confidential, internal assessment, appropriate to the nature, scale, and complexity of an insurer or insurance group and conducted by that insurer or insurance group, of the material and relevant risks associated with the insurer's or insurance group's current business plan and the sufficiency of capital resources to support those risks.

(5) “Guidance Manual” means the current version of the Own Risk and Solvency Assessment Guidance Manual developed and adopted by the NAIC, as may be amended from time to time. A change in the Manual shall be effective on the January 1 following the calendar year in which the changes have been adopted by the NAIC.

(6) “Summary report” means a confidential high-level summary of an insurer or insurance group's ORSA.
8 V.S.A. § 2451 — VT Code / Title 8 / Chapter 78 / Section 2451
§ 2451. Definitions
Status: in_force

As used in this section:

(1) “Personal information” means data capable of being associated with a particular natural person, including gender identification, birth information, marital status, citizenship and nationality, biometric records, government identification designations, and personal, educational, and financial histories.

(2) “Personal information protection company” means a business that is organized for the primary purpose of providing personal information protection services to individual consumers.

(3) “Personal information protection services” means receiving, holding, and managing the disclosure or use of personal information concerning an individual consumer:

(A) pursuant to a written agreement, in which the person receiving the individual consumer's information agrees to serve as a personal information protection company, and which specifies the types of personal information to be held and the scope of services to be provided on behalf of the consumer; and

(B) in the best interests and for the protection and benefit of the consumer.
8 V.S.A. § 10206 — VT Code / Title 8 / Chapter 200 / Section 10206
§ 10206. Lead solicitations
Status: in_force

(a) As used in this section, “consumer” means a natural person residing in this State.

(b) A person shall not use the name, trade name, or trademark of any financial institution in any written or oral advertisement or solicitation to a specifically identified consumer, or that contains specific information on the account or loan of a specifically identified consumer, for products or services, without the express written consent of the financial institution.

(c) A person shall not include a loan number, loan amount, or any other specific loan information that is publicly available and relative to a specifically identified consumer in any written or oral solicitation for products or services unless the solicitation clearly and conspicuously states on the front page of the correspondence in bold-face type and in a type size at least equal to the body of the correspondence:

(1) that the person is not affiliated with or sponsored by the financial institution;

(2) that the solicitation is not authorized by the financial institution;

(3) that the financial institution has not supplied the person with any loan information or personal or financial information referenced in the solicitation; and

(4) the name, address, and telephone number of the person who paid for the solicitation.

(d) The statements required by subsection (c) of this section shall also be given at the time of any oral solicitation to a specifically identified consumer.

(e) In addition to any other authority provided elsewhere, the Commissioner may enforce violations of this section against any person and may impose penalties as set forth in sections 2110 and 2115 of this title; may recover costs and attorney's fees, including court costs; may order any person to cease violating this section; and may take such other actions as the Commissioner deems necessary and appropriate. All administrative proceedings shall be conducted in accordance with 3 V.S.A. chapter 25 and any rules adopted by the Commissioner on hearing procedures.

(f) A financial institution that has had its name, trade name, or trademark misrepresented in a solicitation in violation of this section may, in addition to any other remedy provided by law, bring an action in Superior Court in the county of its primary place of business or, if its primary place of business is located outside Vermont, in Washington Superior Court. The court shall award damages for each violation in the amount of actual damages demonstrated by the financial institution or $5,000.00, whichever is greater. In any successful action for injunctive relief or for damages, the court shall award the financial institution reasonable attorney's fees and costs, including court costs.

(g) A person's failure to comply with the requirements of this section shall constitute an unfair and deceptive act in commerce enforceable under 9 V.S.A. chapter 63.

(h) For purposes of this section, each solicitation sent to each consumer constitutes a separate violation.
8 V.S.A. § 7122 — VT Code / Title 8 / Chapter 148 / Section 7122
§ 7122. Scope and purpose
Status: in_force

(a) The purpose of this chapter is to promote the public welfare by creating a comprehensive legal framework within which travel insurance may be sold in Vermont.

(b) The requirements of this chapter apply to travel insurance that covers any resident of this State, and is sold, solicited, negotiated, or offered in this State, and the policies and certificates of which are delivered or issued for delivery in this State. It shall not apply to cancellation fee waivers or travel assistance services, except as expressly provided in this chapter.

(c) All other applicable provisions of this State's insurance laws shall continue to apply to travel insurance except that the specific provisions of this chapter shall supersede any general provisions of law that would otherwise be applicable to travel insurance.
8 V.S.A. § 6049m — VT Code / Title 8 / Chapter 141 / Section 6049m
§ 6049m. Confidentiality
Status: repealed

(a) Subdivision 6002(c)(3) of this title and subsection 6008(c) of this title shall apply to all documents, materials, and other information, including confidential and privileged documents, examination reports, preliminary examination reports or results, working papers, recorded information, and copies of any of these produced by, obtained by, or disclosed to the Commissioner or any other person in the course of an examination made under this subchapter.

(b) In furtherance of the Commissioner's regulatory duties, the Commissioner may share and receive documents, materials, or other information pursuant to section 22 of this title.

(c) [Repealed.]
8 V.S.A. § 4102 — VT Code / Title 8 / Chapter 109 / Section 4102
§ 4102. Scope
Status: in_force

All life insurance and all accident and health insurance sold in connection with loans or other credit transactions shall be subject to the provisions of this chapter, except such insurance sold in connection with a real estate first mortgage loan, or where the issuance of that insurance is an isolated transaction on the part of the insurer not related to an agreement or a plan for insuring debtors of the creditor.
8 V.S.A. § 7009 — VT Code / Title 8 / Chapter 143 / Section 7009
§ 7009. Cancellation of insurance contract upon default
Status: in_force

(a) When an insurance premium finance agreement contains a power of attorney enabling the insurance premium finance company to cancel any insurance contract or contracts listed in the agreement, the insurance contract or contracts shall not be cancelled by the insurance premium finance company unless such cancellation is effectuated in accordance with this section.

(b) Not less than ten days' written notice shall be mailed to the insured, at his or her last known address as shown on the records of the insurance premium finance company, of the intent of the insurance premium finance company to cancel the insurance contract unless the default is cured within such 10-day period.

(c) After expiration of such 10-day period, the insurance premium finance company may thereafter cancel such insurance contract or contracts by mailing to the insurer a notice of cancellation. The insurance contract shall be cancelled as if such notice of cancellation had been submitted by the insured himself or herself, but without requiring the return of the insurance contract or contracts. Such cancellation shall be effective no less than 10 days after mailing of the notice to the insurer. The insurance premium finance company shall also mail at least 10 days' notice of cancellation to the insured at his or her last known address as shown on the records of the insurance premium finance company. However, if the policy being cancelled is a policy defined in subdivision 4222(1) of this title, then the notice of cancellation shall be given by certified mail, return receipt requested, to the insured by the insurance premium finance company.

(d) All statutory, regulatory, and contractual restrictions providing that the insurance contract may not be cancelled unless notice is given to a governmental agency, mortgagee, or other third party shall apply where cancellation is effected under the provisions of this section. The insurer shall give the prescribed notice on behalf of itself or the insured to any governmental agency, mortgagee, or other third party on or before the second business day after the day it receives the notice of cancellation from the insurance premium finance company and shall determine the effective date of cancellation taking into consideration the number of days' notice required to complete the cancellation.
8 V.S.A. § 12601 — VT Code / Title 8 / Chapter 202 / Section 12601
§ 12601. Certain special purpose financial institutions authorized
Status: in_force

(a) In addition to universal financial institutions authorized under subchapters 1-5 of this chapter and under chapter 203 of this title, special purpose financial institutions may be established in this State, subject to the conditions and limitations imposed under this subchapter.

(b) Any person who, directly or indirectly, controls a special purpose financial institution established under this subchapter shall be subject to the supervision of the Commissioner, unless that person is a bank holding company regulated by the Federal Reserve Board or savings and loan holding company regulated by the director of the Office of Thrift Supervision. In exercising the supervisory powers under this subchapter, the Commissioner may require such examination and reports, including copies of reports filed with federal regulatory agencies, of the special purpose financial institution and any person that controls it as the Commissioner deems necessary to protect the interests of depositors, borrowers, or other parties in interest.

(c) Any material change in a business plan by a special purpose financial institution authorized to do business under this subchapter shall be submitted to the Commissioner for prior approval, unless the provisions of this title require the financial institution to file an application with the Commissioner.
8 V.S.A. § 3584 — VT Code / Title 8 / Chapter 101 / Section 3584
§ 3584. ORSA requirement
Status: in_force

Subject to section 3586 of this subchapter, an insurer or the insurance group of which the insurer is a member shall regularly conduct an ORSA consistent with a process comparable to the Guidance Manual. The assessment shall be conducted no less than annually but also at any time when there are significant changes to the risk profile of the insurer or the insurance group of which the insurer is a member.
8 V.S.A. § 4468 — VT Code / Title 8 / Chapter 121 / Section 4468
§ 4468. Consolidations and mergers
Status: in_force

(a) A domestic society may consolidate or merge with any other society by complying with the provisions of this section.

(b) It shall file with the Commissioner of Financial Regulation:

(1) a certified copy of the written contract containing in full the terms and conditions of the consolidation or merger;

(2) a sworn statement by the president and secretary or corresponding officers of each society showing the financial condition thereof on a date fixed by the Commissioner of Financial Regulation but not earlier than December 31, next preceding the date of the contract;

(3) a certificate of the officers, duly verified by their respective oaths, that the consolidation or merger has been approved by a two-thirds vote of the supreme legislative or governing body of each society; and

(4) evidence that at least 60 days prior to the action of the supreme legislative or governing body of each society, the text of the contract has been furnished to all members of each society either by mail or by publication in full in the official organ of each society.

(c) If the Commissioner of Financial Regulation finds that the contract is in conformity with the provisions of this section, that the financial statements are correct, and that the consolidation or merger is just and equitable to the members of each society, he or she shall approve the contract and issue his or her certificate to that effect. Upon that approval, the contract shall be in full force and effect unless any society that is a party to the contract is incorporated under the laws of any other state or territory. In that event the consolidation or merger shall not become effective until it is approved as provided by the laws of that state or territory and a certificate of the approval is filed with the Commissioner of Financial Regulation of this State or, if the laws of that state or territory contain no such provision, then the consolidation or merger shall not become effective until it is approved by the commissioner of financial regulation of that state or territory and a certificate of the approval is filed with the Commissioner of Financial Regulation of this State.

(d) Upon the consolidation or merger becoming effective as provided in this section, all the rights, franchises, and interests of the consolidated or merged societies in and to every species of property real, personal, or mixed, and things in action thereunto belonging shall be vested in the society resulting from or remaining after the consolidation or merger without any other instrument, except that conveyances of real property may be evidenced by proper deeds, and the title to any real estate or interest therein, vested under the laws of this State in any of the societies consolidated or merged, shall not revert or be in any way impaired by reason of the consolidation or merger but shall vest absolutely in the society resulting from or remaining after the consolidation or merger.

(e) The affidavit of any officer of the society or of anyone authorized by it to mail any notice or document, stating that the notice or document has been duly addressed and mailed, shall be prima facie evidence that the notice or document has been furnished the addressees.