reglab/statecodes huggingface dataset:
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 83 - Debt Adjusters › § 2759. Contract with debtor

§ 2759. Contract with debtor
(a) Prior to taking any fee or receiving any compensation, either directly or indirectly, or payment of any sum of money by the debtor, each licensee shall make a written contract between the licensee and the debtor, which contract shall be in such form and shall contain such conditions as the Commissioner shall have approved in writing prior to the use of such contract, and the licensee shall immediately furnish the debtor with a true copy of the contract.
(b) In addition to such other items as the Commissioner may require, the contract shall:
(1) fully disclose all services to be provided;
(2) fully disclose all fees to be charged to the debtor;
(3) disclose that debt adjustment plans are not suitable for all debtors;
(4) if applicable, disclose that creditors may compensate the licensee;
(5) if applicable, disclose that secured debt is not covered by the contract; and
(6) disclose a list of debts covered by the contract and the interest rate of those debts at the time. (Added 1969, No. 204 (Adj. Sess.), eff. March 23, 1970; amended 2003, No. 81 (Adj. Sess.), § 1; 2009, No. 137 (Adj. Sess.), § 3.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 83 - Debt Adjusters › § 2759b. Cancellation of contract

§ 2759b. Cancellation of contract
A debtor may cancel a debt adjustment contract at any time without a cancellation premium or penalty. (Added 2003, No. 81 (Adj. Sess.), § 1; amended 2009, No. 137 (Adj. Sess.), § 3.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 83 - Debt Adjusters › § 2759c. Periodic statements to debtor

§ 2759c. Periodic statements to debtor
Periodically, but not less frequently than quarterly, the licensee shall provide the debtor with a statement showing the payments made by the debtor, how such payments have been distributed, and for each debt covered by the contract:
(1) the beginning amount of such debt;
(2) the current amount due on such debt; and
(3) the basic terms of such debt. (Added 2003, No. 81 (Adj. Sess.), § 1; amended 2009, No. 137 (Adj. Sess.), § 3.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 83 - Debt Adjusters › § 2760. Separate bank account for the benefit of creditors; books and records

§ 2760. Separate bank account for the benefit of creditors; books and records
(a) Each licensee shall maintain a separate federally insured bank account for the benefit of debtors in which all payments received from debtors for the benefit of creditors shall be deposited and in which all payments shall remain until a remittance is made to either a debtor or a creditor.
(b) Every licensee shall keep, and use in its business, books, accounts, and records which will enable the Commissioner to determine whether such licensee is complying with the provisions of this chapter and with the regulations of the Commissioner. Every licensee shall preserve such books, accounts, and records for at least seven years after making the final entry on any transaction recorded therein. The items specified in this subsection may be maintained in any form of record as permitted in subsection 11301(c) of this title. (Added 1969, No. 204 (Adj. Sess.), eff. March 23, 1970; amended 2003, No. 81 (Adj. Sess.), § 1; 2009, No. 137 (Adj. Sess.), § 3.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 83 - Debt Adjusters › § 2760a. Timely payments to creditors

§ 2760a. Timely payments to creditors
Licensees shall make payments to creditors in a timely manner at least once every 30 days in accordance with the contract between the licensee and the debtor. (Added 2003, No. 81 (Adj. Sess.), § 1; amended 2009, No. 137 (Adj. Sess.), § 3.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 83 - Debt Adjusters › § 2760c. Financial privacy

§ 2760c. Financial privacy
The licensee shall be subject to and shall comply with subchapter 2 of chapter 200 of this title and any rules or regulations adopted in connection therewith. (Added 2003, No. 81 (Adj. Sess.), § 1; amended 2009, No. 137 (Adj. Sess.), § 3.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 83 - Debt Adjusters › § 2761. Examinations

§ 2761. Examinations
The Commissioner shall examine or cause to be examined, with or without notice, the condition and affairs of each licensee under this chapter at least once every three years and otherwise as required or determined by the Commissioner. (Added 1969, No. 204 (Adj. Sess.), eff. March 23, 1970; amended 1979, No. 157 (Adj. Sess.), § 7; 1999, No. 153 (Adj. Sess.), § 26, eff. Jan. 1, 2001; 2003, No. 81 (Adj. Sess.), § 1; 2009, No. 137 (Adj. Sess.), § 3; 2011, No. 78 (Adj. Sess.), § 21, eff. April 2, 2012; 2019, No. 20, § 75.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 83 - Debt Adjusters › § 2762. Fee of licensee

§ 2762. Fee of licensee
The fee charged by the licensee shall be agreed upon in advance. The fee retained shall in no case exceed a $50.00 initial set up fee plus 10 percent of any payment received by the licensee from the debtor for the purpose of distribution to creditors. (Added 1969, No. 204 (Adj. Sess.), eff. March 23, 1970; amended 2003, No. 81 (Adj. Sess.), § 1; 2009, No. 137 (Adj. Sess.), § 3.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 83 - Debt Adjusters › § 2763. Exceptions

§ 2763. Exceptions
The provisions of this chapter shall not apply to the following:
(1) any attorney admitted to the practice of law in this State, when engaged in such practice;
(2) any financial institution as defined in subdivision 11101(32) of this title or a lender licensed under chapter 73 of this title, which performs debt adjustment in the regular course of its principal business;
(3) any person acting pursuant to any law of this State or of the United States or acting under the order of a court;
(4) any bona fide nonprofit religious, fraternal, or cooperative organization offering debt adjustment services exclusively for members;
(5) any employee of a licensee when acting in the regular course of his or her employment; and
(6) a certified public accountant licensed in this State, when services are rendered in the course of his or her practice as a certified public accountant. (Added 1969, No. 204 (Adj. Sess.), eff. March 23, 1970; amended 2003, No. 81 (Adj. Sess.), § 1; 2009, No. 137 (Adj. Sess.), § 3.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 83 - Debt Adjusters › § 2764. Private right of action and Consumer Protection Act

§ 2764. Private right of action and Consumer Protection Act
(a) A consumer may bring a private action against a licensee or any person that should have been licensed under this chapter for restitution because of a violation of this chapter.
(b) The powers vested in the Commissioner by this chapter shall be in addition to any other powers or rights of consumers or the Attorney General or others under any other applicable law or rule, including without limitation the Vermont Consumer Protection Act and any applicable rules issued in connection therewith, 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. (Added 1969, No. 204 (Adj. Sess.), eff. March 23, 1970; amended 1995, No. 167 (Adj. Sess.), § 21; 2003, No. 81 (Adj. Sess.), § 1; 2009, No. 137 (Adj. Sess.), § 3; 2011, No. 109 (Adj. Sess.), § 3, eff. May 8, 2012; 2011, No. 136 (Adj. Sess.), § 1b, eff. May 18, 2012; 2019, No. 20, § 76.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 85 - Loan Servicers › § 2900. Definitions

§ 2900. Definitions
As used in this chapter:
(1) “Loan” means a residential mortgage loan.
(2) “Servicing” means receiving a scheduled periodic payment from a borrower pursuant to the terms of a loan, including amounts for escrow accounts, and making the payments to the owner of the loan or other third party of principal and interest and other payments with respect to the amounts received from the borrower as may be required pursuant to the terms of the servicing loan document or servicing contract. In the case of a home equity conversion mortgage or a reverse mortgage, servicing includes making payment to the borrower.
(3) “Third party loan servicer” means a person who engages in the business of servicing a loan, directly or indirectly, owed or due or asserted to be owed or due another. (Added 2009, No. 96 (Adj. Sess.), § 1, eff. Jan. 1, 2011; amended 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012; 2019, No. 20, § 81.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 85 - Loan Servicers › § 2901. License required

§ 2901. License required
(a) No person shall act as a third party loan servicer, directly or indirectly, for a loan to a Vermont borrower without first obtaining a license under this chapter from the Commissioner.
(b) No license shall be required of:
(1) a depository institution;
(2) a lender licensed under chapter 73 of this title that retains the servicing rights on a loan originally closed in the lender’s name and subsequently sold in whole or in part to a third party, provided that the provisions of sections 2916 (segregated accounts) and 2922 (prohibited acts and practices) of this title shall apply to such lender;
(3) a debt adjuster licensed in this State;
(4) an attorney licensed in this State when collecting a debt on behalf of a client; or
(5) bona fide nonprofit organizations, exempt from taxation under Section 501(c) of the Internal Revenue Code, that are approved by the Department of Housing and Urban Development as housing counseling agencies, that have a physical location in Vermont, and that lend state or federal funds.
(c) This chapter shall not apply to commercial loans. (Added 2009, No. 96 (Adj. Sess.), § 1, eff. Jan. 1, 2011.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 85 - Loan Servicers › § 2903. Bond

§ 2903. Bond
(a) Prior to issuance of a license, the applicant shall file with the Commissioner and shall keep in force thereafter for as long as the license remains in effect, a bond in a form and substance to be approved by the Commissioner in which the applicant shall be the obligor, in the amount of $100,000.00 or in such sum as the Commissioner may require. The aggregate liability for any and all claims on any bond shall in no event exceed the sum thereof. No surety obligation on a bond shall be terminated unless at least 60 days’ prior written notice is given by the surety to the obligor and the Commissioner. When one person is issued licenses to conduct the licensed activity at more than one office, the Commissioner may accept a single bond covering all such offices. The bond shall run to the State for the use of the State and of any person or persons who may have a cause of action against the obligor of such bond under the provisions of this chapter. Such bond shall be conditioned that the obligor will faithfully conform to and abide by the provisions of this chapter and of all rules and regulations lawfully made by the Commissioner hereunder, and will pay to the State and to any such person or persons any and all monies that may become due or owing to the State or to such person or persons from such obligor under and by virtue of the provisions of this chapter.
(b) When an action is commenced on a licensee’s bond, the Commissioner may require the filing of a new bond. Immediately upon recovery upon any action on the bond, the licensee shall file a new bond.
(c) Notwithstanding subsections (a) and (b) of this section, the Commissioner may waive or modify the requirement for or the amount of a bond or accept other appropriate means of ensuring the financial responsibility of a licensee. (Added 2009, No. 96 (Adj. Sess.), § 1, eff. Jan. 1, 2011.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 85 - Loan Servicers › § 2907. Additional bond

§ 2907. Additional bond
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. (Added 2009, No. 96 (Adj. Sess.), § 1, eff. Jan. 1, 2011.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 85 - Loan Servicers › § 2916. Segregated accounts

§ 2916. Segregated accounts
(a) All amounts paid by borrowers to a licensee subject to this chapter shall be deposited in one or more accounts maintained at a federally insured depository institution and with respect to such funds, the licensee shall act as a fiduciary. Such account or accounts shall be segregated from all other accounts of the licensee. Such funds shall not be used in the conduct of the licensee’s personal affairs or in the licensee’s business affairs.
(b) The licensee may withdraw funds from the segregated account for payment directly to the owner of the loan or other third party of principal and interest and other payments as may be required pursuant to the terms of the loan document or servicing contract.
(c) The licensee may withdraw funds from the segregated account for commissions to which it is entitled for services actually performed.
(d) The licensee may return funds from the segregated account to the borrower if not prohibited.
(e) The licensee shall maintain complete and accurate account records, including, at a minimum, the source of all deposits, the nature and recipient of all disbursements, the date and amount of each transaction, and the name of the borrower. All documents pertaining to account activity shall be produced upon request of the Commissioner. (Added 2009, No. 96 (Adj. Sess.), § 1, eff. Jan. 1, 2011.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 85 - Loan Servicers › § 2917. Examinations

§ 2917. Examinations
The Commissioner shall examine the affairs, business, and records of each licensee under this chapter at least once every three years. (Added 2009, No. 96 (Adj. Sess.), § 1, eff. Jan. 1, 2011; amended 2019, No. 20, § 94.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 85 - Loan Servicers › § 2922. Prohibited acts and practices

§ 2922. Prohibited acts and practices
(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. (Added 2009, No. 96 (Adj. Sess.), § 1, eff. Jan. 1, 2011.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3301a. Insurance defined

§ 3301a. Insurance defined
As used in this title, “insurance” means an agreement to indemnify or otherwise assume an obligation, provide services or any other thing of value on the happening of a particular event or contingency, or to provide indemnity for loss with respect to a specified subject by specified circumstances in return for a consideration. Without limiting the generality of the term, “insurance” shall include any business defined in section 3301 of this title, annuity contracts, and the business of health maintenance organizations and continuing care retirement communities. (Added 2001, No. 71, § 2, eff. June 16, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3302. Plan of organization; incorporators

§ 3302. Plan of organization; incorporators
For the purpose of this chapter an insurance company may be incorporated as a stock insurer with its capital divided into shares and owned by the stockholders, or a mutual insurer without capital stock the governing body of which is elected by its policyholders. There shall be not less than 15 incorporators of whom not less than two-thirds shall be citizens of this State. Except as provided in sections 4831 through 4856 of this title, no unincorporated association shall be formed after July 1, 1968, for the purpose of doing any insurance business in Vermont. Those domestic unincorporated associations which are doing insurance business of any kind under authority of the Commissioner on July 1, 1968, may continue to carry on their business subject to the provisions of this part. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 1, subch. 1, § 2); amended 1971, No. 31, § 2, eff. March 31, 1971.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3303. Mutual companies; directors, charter provisions as to

§ 3303. Mutual companies; directors, charter provisions as to
The articles of association or bylaws of a mutual insurer shall set forth the manner in which its board of directors or other governing body shall be elected, and in which meetings of policyholders shall be called, held, and conducted, subject to such procedures as may be required by the Commissioner under section 75 of this title. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 1, subch. 1, § 3); amended 1971, No. 51, § 1, eff. July 1, 1971.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3304. Capital and surplus requirements

§ 3304. Capital and surplus requirements
To qualify for authority to transact the business of insurance, a stock insurer seeking such authorization shall possess and thereafter maintain unimpaired paid-in capital of not less than $2,000,000.00 and, when first so authorized, shall possess and maintain free surplus of not less than $3,000,000.00. Such capital and surplus shall be in the form of cash or marketable securities, a portion of which may be held on deposit with the State Treasurer, such securities as designated by the insurer and approved by the Commissioner, in an amount and subject to such conditions determined by the Commissioner. Such conditions shall include a requirement that any interest or other earnings attributable to such cash or marketable securities shall inure to the benefit of the insurer until such time as the Commissioner determines that the deposit must be used for the benefit of the policyholders of the insurer or some other authorized public purpose relating to the regulation of the insurer. The Commissioner may prescribe additional capital or surplus for all stock insurers authorized to transact the business of insurance based upon the type, volume, and nature of insurance business transacted. The Commissioner may reduce or waive the capital and surplus amounts required by this section pursuant to a plan of dissolution for the company approved by the Commissioner. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 1, subch. 1, § 4); amended 1991, No. 101, § 1; 2003, No. 105 (Adj. Sess.), § 2; 2005, No. 36, § 9, eff. June 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3305. Petition; hearing

§ 3305. Petition; hearing
Before the articles of association are transmitted to the Secretary of State, the incorporators shall petition the Commissioner to hold a public hearing, in the county where the proposed corporation is to have its principal office, to determine whether the establishment and maintenance of the proposed corporation will promote the general good of the State. The Commissioner shall thereupon appoint a time and place in such county for hearing the petition and shall make an order for the publication of the substance of the petition and of the time and place of the hearing three weeks successively in a newspaper published in the county, or, for want thereof, in an adjoining county, the last publication to be at least 12 days before the day appointed for the hearing. If, after the hearing, the Commissioner finds and adjudges that the establishment and maintenance of the proposed corporation will promote the general good of the State, he or she shall give the incorporators a certificate to that effect under his or her seal. In determining the general good of the State as herein required, the Commissioner shall consider:
(1) The character, reputation, financial standing, and purposes of the organizers, incorporators, and subscribers organizing the proposed insurer or organization.
(2) The character, reputation, financial responsibility, insurance experience, and business qualifications of its proposed officers and directors.
(3) Such other aspects of the proposed insurer or financing as he or she may deem advisable. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 1, subch. 1, § 5).)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3306. Duties of Secretary of State, records

§ 3306. Duties of Secretary of State, records
The articles of association, the certificate, and the organization fee shall be transmitted to the Secretary of State, who shall thereupon record both the articles and the certificate. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 1, subch. 1, § 6).)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3307. Consideration for stock

§ 3307. Consideration for stock
(a) The capital stock of a corporation doing any and all insurance and reinsurance comprised in any one or more of the subdivisions of section 3301 of this title shall be issued at not less than par and under any of the following conditions, subject to the approval of the Commissioner:
(1) For cash.
(2) For the stock of another insurance company on a reorganization or merger.
(3) For the stock of the same insurance company at the same or a different par value or preference than that of the stock called for exchange.
(4) As a stock dividend. Any increase in par value under subdivisions (2) and (3) of this subsection and of the stock dividend provided in this subdivision are chargeable against the issuing corporation’s surplus, undivided profits or a reserve established for that purpose. However, the limitations of this subdivision shall not exclude the payment of cash for a part of any increase in par value provided in subdivisions (2) and (3) of this subsection.
(b) Whenever the charter or articles of association of an insurance company are so amended as to authorize an increase in its capital stock, it shall not be required to issue the whole amount of authorized increase, nor required to make any statement of capital except to the amount actually paid in or issued in accordance with the provisions of this chapter. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 1, subch. 1, § 7).)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3308. List of stockholders; certificate to transact business; liability of president and directors

§ 3308. List of stockholders; certificate to transact business; liability of president and directors
When the entire capital stock of a corporation having capital stock has been issued, a complete list of the stockholders with the name and post office address of each and the number of shares held by each shall be filed with the Commissioner, who shall examine the corporation. If, after such examination, it appears that the whole capital stock has been paid in cash, and the Commissioner has considered the criteria in section 3361 of this chapter, the Commissioner shall issue a certificate under his or her seal authorizing the corporation to begin the transaction of business, which shall be filed with the Secretary of State. A corporation having capital stock shall not begin the transaction of business until the certificate has been issued and filed. If a corporation commences business before a certificate is issued and filed, the president and directors assenting thereto are personally liable for all debts incurred before the certificate is issued and filed. (Amended 1967, No. 344 (Adj. Sess.), § 1 (ch. 1, subch. 1, § 8); 2015, No. 15, § 1, eff. May 1, 2015.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3308a. Reorganization formations

§ 3308a. Reorganization formations
Notwithstanding sections 3302, 3303, 3304, 3307, 3308, and 3309 of this title, the Commissioner may permit the formation of an insurance company without capital or surplus to be merged with or into or consolidated with an existing insurance company authorized to do business under this chapter for the purpose of facilitating a reorganization or acquisition transaction, including a triangular merger transaction, involving such existing company. There shall be no more than one authorized insurance company surviving reorganization under this section. (Added 1997, No. 54, § 1, eff. June 26, 1997.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3309. Mutual insurers to commence business; when

§ 3309. Mutual insurers to commence business; when
(a) A corporation that, according to its charter, is not to have a capital stock shall not receive authorization to commence business until:
(1) it complies with preliminary requirements for the procurement of an adequate amount of subscriptions for insurance and possesses and thereafter maintains unimpaired basic surplus of not less than $2,000,000.00 and, when first authorized, shall possess free surplus of not less than $3,000,000.00; and
(2) the Commissioner has considered the criteria in section 3361 of this chapter.
(b) The Commissioner in his or her discretion may establish lesser surplus amount requirements in the case of affiliated corporations jointly conducting the business of insurance under a pooling agreement. Such surplus shall be in the form of cash or marketable securities, a portion of which may be held on deposit with the State Treasurer, such securities as designated by the insurer and approved by the Commissioner, in an amount and subject to conditions determined by the Commissioner. The conditions shall include a requirement that any interest or other earnings attributable to cash or marketable securities shall inure to the benefit of the insurer until the Commissioner determines that the deposit must be used for the benefit of the policyholders of the insurer or some other authorized public purpose relating to the regulation of the insurer. The Commissioner may prescribe additional surplus based upon the type, volume, and nature of insurance business transacted. (Amended 1967, No. 344 (Adj. Sess.), § 1 (ch. 1, subch. 1, § 9); 1991, No. 101, § 2; 2003, No. 105 (Adj. Sess.), § 3; 2015, No. 15, § 2, eff. May 1, 2015.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3310. Amendment of charter

§ 3310. Amendment of charter
A corporation formed under the provisions of this chapter or by a special act of the Legislature may amend its articles of association or its charter as provided therein or in the absence of such provision by vote of three-fourths of its stockholders (in the case of a stock company) or members (in the case of a mutual company) present at a meeting thereof, provided the Commissioner, in all cases, on petition and after a hearing held substantially as is specified in section 3305 of this title, certifies that such amendment shall not be detrimental to the policyholders and such other persons as have an interest in said corporation. His or her certificate shall be recorded with the certificate of amendment. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 1, subch. 1, § 10).)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3311. Quorum

§ 3311. Quorum
In the case of a mutual insurance company, the policyholders or annuitants therein, who attend a duly called meeting, shall constitute a quorum. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 1, subch. 1, § 11).)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3312. Construction with other laws

§ 3312. Construction with other laws
(a) Corporations formed under the provisions of this subchapter shall have the privileges and be subject to the provisions of the general corporation law as well as the applicable provisions contained in this part. In the event of conflict between the provisions of the general corporation law and the provisions of this part, the latter shall control. Such corporations shall not be required to make any annual report except as provided in this part.
(b) A corporation formed prior to July 1, 1968, for any purpose for which a corporation may be formed under this subchapter, with respect to all acts done after such date, shall be deemed to be within the provisions of this subchapter and of the general corporation law, in like manner as a corporation formed under this subchapter. But the foregoing provisions shall be subject to all such exceptions and qualifications as are contained in 11 V.S.A. § 2. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 1, subch. 1, § 12).)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3313. Proxies

§ 3313. Proxies
(a) The Commissioner may prescribe by rules and regulations, the form, content and manner of solicitation of any proxy, consent, or authorization in respect of any voting security issued by a domestic insurer as necessary or appropriate in the public interest, or for protection of investors in the securities, or to insure the fair dealing in the securities.
(b) The term “voting security” as used in this section shall mean any instrument issued by a domestic stock insurance company which, in law or by contract, gives the holder the right to vote, consent, or authorize any corporate action of the insurer.
(c) This section shall not apply to voting securities of a domestic insurer if the securities are registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended.
(d) Any person, domestic insurer, or director, officer, or employee of the insurer, shall not solicit or permit the use of his or her name to solicit, by mail or otherwise, any person to give a proxy, consent, or authorization in respect of a voting security issued by the insurer in contravention of any rule or regulation made under this section.
(e) Failure to comply with any rule or regulation made under this section shall be unlawful and any proxy or consent obtained in violation of this section or in contravention of any rule or regulation made thereunder shall be void. Any domestic insurer or any person who is legally entitled to vote, consent, or authorize by virtue of being the holder of record of such a security, or the Commissioner, if the other parties fail to act within 15 days after the date on which the vote was cast or counted, may enforce compliance with any rule or regulation made under this section, by appropriate civil action, except that no suit shall be brought more than 30 days after the date on which the vote, consent, or authorization was to have been effected. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 1, subch. 1, § 13).)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3314. Annual financial statements; reports; filing fee

§ 3314. Annual financial statements; reports; filing fee
Notwithstanding any other provision of law, any insurer, of whatever form and description other than captive insurance companies organized under chapter 141 of this title, that is required by statute to file an annual statement or report of financial condition, shall pay a fee of $100.00 for filing its statement or report with the Commissioner. (Added 1985, No. 236 (Adj. Sess.), § 13.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3315. Coordinated regulation

§ 3315. Coordinated regulation
Notwithstanding section 5112 of this title and any other provision of this title, the Commissioner may cooperate and coordinate with the insurance supervisory authorities of other states or through the facilities or subsidiaries of a national organization which facilitate regulatory efficiency and cooperation on a nationwide basis. The areas of cooperation and coordination contemplated by this section include the following: solvency oversight; company and producer licensing, appointment, and discipline; rate and forms review and approval; and investigation and examination of persons subject to the insurance laws of this State. The Commissioner may enter into agreements or contracts concerning the coordination and cooperation contemplated by this section with such other state or organization. The Commissioner may adopt, by rule, any uniform standards or procedures as are necessary to fully implement cooperative and coordinated supervision of the business of insurance. In the event of conflict between this provision and other pertinent provisions of parts 3 and 4 of this title, the Commissioner may elect that this provision prevail, if the Commissioner deems that such election is in the best interests of the State. (Added 2001, No. 71, § 3, eff. June 16, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3361. Requirements for license

§ 3361. Requirements for license
(a) A foreign or alien insurer shall not transact business in this State unless it first obtains from the Commissioner a license authorizing it to do so. Before receiving a license, it shall file with the Commissioner a certified copy of its charter and bylaws, a statement under oath of its president and secretary, showing its financial condition, and any other statements required by the Commissioner.
(b) An insurer making an application or reapplication for an original license to transact business in this State shall pay to the Commissioner a nonrefundable fee of $200.00 for examining, investigating, and processing the application. In addition, each insurer shall pay a license fee for the year of registration and a renewal fee for each year thereafter of $300.00 not including fees for producers licenses and renewals thereof. The annual renewal fee of $300.00 shall be paid on or before March 1.
(c) If the Commissioner is satisfied with the copies and statements that such insurer has complied with the provisions of this part, he or she may grant a license authorizing it to do insurance business by lawfully constituted and licensed agents only, until April 1 thereafter, which license may be renewed. In granting or renewing such license to do business the Commissioner shall consider the criteria established for the approval and certification of domestic insurers hereinabove set forth, within the context of the stated legislative policy. Notwithstanding the provisions of Title 11A, any insurer licensed by the Commissioner under this section may transact insurance business in this State. Such corporations shall not be required to make any annual report except as provided in this title. This section shall not be construed to prohibit residents of this State from procuring insurance at the home office of a foreign insurer. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 1, subch. 2, § 1); amended 1977, No. 148 (Adj. Sess.), § 1, eff. date, see note set out below; 1981, No. 42, § 1; 1993, No. 235 (Adj. Sess.), § 9b, eff. June 21, 1994; 2001, No. 71, § 4, eff. June 16, 2001; 2005, No. 122 (Adj. Sess.), § 8.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3362. Authority to transact various kinds of insurance business

§ 3362. Authority to transact various kinds of insurance business
A foreign or alien insurer may transact more than one kind of insurance business, provided the charter of such corporation authorizes it to transact such different kinds of insurance business and its capital is sufficient to provide the required capital for each kind of business to be transacted. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 1, subch. 2, § 2); amended 2017, No. 134 (Adj. Sess.), § 1.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3363. Revocation of license

§ 3363. Revocation of license
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. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 1, subch. 2, § 3).)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3364. Authorization for investment purposes only

§ 3364. Authorization for investment purposes only
Such insurer may make investments in this State without qualifying to do business in this State as a foreign corporation under the general corporation law or as a foreign or alien insurer under this article provided such insurer constitutes the Secretary of State as his or her agent for the service of process and enters into a stipulation with said Secretary to submit to the jurisdiction of the courts of this State. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 1, subch. 2, § 4).)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3365. Plan of organization

§ 3365. Plan of organization
Such insurers admitted to do business in this State under authority of this article shall be incorporated as stock or mutual companies as defined in section 3302 of this title. Except as provided in sections 4831 through 4856 of this title, no unincorporated or joint stock association shall be admitted after July 1, 1968, for the purpose of doing any insurance business in Vermont. Such unincorporated or joint stock associations which are lawfully admitted and qualified on such date may continue to carry on their business in this State subject to the provisions of this part, but they shall not write any new or additional lines of insurance after such date. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 1, subch. 2, § 5); amended 1971, No. 31, § 3, eff. March 31, 1971.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3366. Assets of companies

§ 3366. Assets of companies
(a)(1) A foreign or alien insurer authorized to do business in this State shall possess and thereafter maintain unimpaired paid-in capital or basic surplus of not less than $2,000,000.00 and, when first so authorized, shall possess and maintain free surplus of not less than $3,000,000.00.
(2) The capital and surplus shall be in the form of cash or marketable securities, a portion of which may be held on deposit with the State Treasurer, such securities as designated by the insurer and approved by the Commissioner, in an amount and subject to conditions determined by the Commissioner. The conditions shall include a requirement that any interest or other earnings attributable to such cash or marketable securities shall inure to the benefit of the insurer until such time as the Commissioner determines that the deposit must be used for the benefit of the policyholders of the insurer or some other authorized public purpose relating to the regulation of the insurer.
(3) The Commissioner may prescribe additional capital or surplus for all insurers authorized to transact the business of insurance based upon the type, volume, and nature of insurance business transacted. The Commissioner may reduce or waive the capital and surplus amounts required by this section pursuant to a plan of dissolution for the company approved by the Commissioner.
(b) The express purpose of subsection (a) of this section and the Commissioner’s power to require the deposit of cash or marketable securities set forth therein is to protect the interests of Vermont policyholders in the event of the insolvency of the insurer. Except to the extent it would contravene applicable provisions of 9A V.S.A. Article 9, the State of Vermont shall be deemed to control the funds on deposit and to have a lien on the funds for the benefit of the Vermont policyholders affected by the insolvency. The lien so created shall be superior to any lien filed by a general creditor of the insurer. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 1, subch. 2, § 6); amended 2003, No. 105 (Adj. Sess.), § 4; 2005, No. 36, § 10, eff. June 1, 2005; 2019, No. 57, § 3.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3368a. Unauthorized and misleading transactions

§ 3368a. Unauthorized and misleading transactions
(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 which 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. (Added 2007, No. 178 (Adj. Sess.), § 6.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3369. Commissioner may enjoin unauthorized insurer

§ 3369. Commissioner may enjoin unauthorized insurer
Whenever the Commissioner believes, from evidence satisfactory to him or her, that any foreign or alien insurer is violating or about to violate the provisions of section 3368 of this title, the Commissioner may, through the Attorney General of this State, cause a complaint to be filed in Superior Court to enjoin and restrain such insurer from continuing such violation or engaging therein or doing any act in furtherance thereof. The Court shall have the power to make and enter an order of judgment awarding such preliminary or final injunctive relief as in its judgment is proper. (Added 1967, No. 353 (Adj. Sess.), § 2; amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974.)