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2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3467. Qualification of investments

§ 3467. Qualification of investments
(a) Any restriction, exclusion, or provision appearing in any section of this chapter shall apply only with respect to the authorization of the particular section in which it appears and shall not be applicable to any other section. The qualification or disqualification of an investment under one section shall not prevent its qualification in whole or in part under another section, and an investment authorized by more than one section may be held under whatever authorizing section the insurer elects. An investment may be transferred from time to time at the election of the insurer to the authority of any section under which it qualifies whether originally qualifying thereunder or not.
(b) The qualification of an investment under a particular section of this chapter shall be determined as of the date of its acquisition by the insurer or as of the date on which the insurer becomes legally obligated to acquire the same as the case may be.
(c) As used herein, the word “section” shall include any subsections or specific provisions authorizing a particular kind or class of investments.
(d) An investment instrument not specifically qualified under this subchapter shall be deemed to qualify under this subchapter, based on the underlying nature of the actual securities that comprise such investment instrument subject to the prior written permission of the Commissioner. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 1, subch. 5, art. 3, § 3); amended 1999, No. 84 (Adj. Sess.), § 8, eff. April 19, 2000.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3468. Investments qualified under prior law

§ 3468. Investments qualified under prior law
The provisions of this chapter shall not affect or operate to disqualify any investment which an insurer has made or which it is legally obligated to acquire prior to the effective date of this subchapter; provided, however, that an insurer at its option may transfer any previously made investment to the authority of the provisions of this chapter whereupon such investments shall be subject to and governed thereby. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 1, subch. 5, art. 3, § 4).)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3469. Loans to directors and officers—Restrictions

§ 3469. Loans to directors and officers—Restrictions
No domestic insurer shall invest in or loan upon any property, directly or indirectly, whether real or personal, in which any officer or director of such insurer has a financial interest, nor shall any such insurer make a loan of any kind to any officer or director of such insurer unless such officer or director neither participates in, nor votes at any management decision or meeting regarding such loan. This section shall not apply to policy loans or first mortgage loans on dwellings of not more than two families to be occupied by such officer as a residence, nor in circumstances where the financial interest of such officer or director is only nominal, trifling, or so remote as not to give rise to a conflict of interest. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 1, subch. 5, art. 3, § 5).)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3470. Mortgage loans to minors

§ 3470. Mortgage loans to minors
An insurer is hereby authorized to make loans secured by a mortgage on real estate to a husband and wife where either or both is a minor 18 years old or over and where said real estate is to be used as a home by said husband and wife, subject to statutory conditions relating to such insurer, and may make any contract relating thereto with such minor. Such minors may be legally bound to the full performance of such mortgage and notes and contracts relating thereto without right of rescission because of their minority. The minority of such minor shall not be a defense nor a material issue in any civil action in which such mortgage or contract is material. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 1, subch. 5, art. 3, § 6).)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3471. Mortgages on real and personal property as liens; priorities

§ 3471. Mortgages on real and personal property as liens; priorities
Any mortgages acquired by an insurer on real or personal property so written as to secure a present debt and any future advances by the mortgagee or an assignee shall be a lien upon the mortgaged property for the full amount of debt directly created between the mortgagor and the mortgagee and between the mortgagor and an assignee of the mortgagee subsequent to assignment, due to the mortgagee or assignee at any given time provided that if the mortgaged property includes a homestead, the spouse of the mortgagor must consent in writing to the creation of any subsequent indebtedness. Any such mortgage may be assigned for the full amount due thereon at the time of such assignment. A subsequent mortgage on the same premises shall be inferior to the first mortgage unless the second mortgagee in writing notifies the first mortgagee of the incidence of his or her mortgage, in which case indebtedness created by the mortgagor to the first mortgagee subsequent to such notice shall be inferior to the lien of the second mortgagee. In any conflict with other provisions of Vermont statutes this section shall control. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 1, subch. 5, art. 3, § 7).)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3472. Earnings statements and income ratios—Special situations

§ 3472. Earnings statements and income ratios—Special situations
In the application of the provisions and requirements of this subchapter to determine whether a particular investment in any corporation, association, or institution is qualified the following shall be applicable:
(1) When a corporation, association, or institution, whether or not it has been in existence during the whole or whatever period may be required by the particular provision of this chapter under which it is sought to be qualified as an investment, has been constituted in the form that it has at the time of such investment by consolidation, acquirement of merger, the adjusted pro forma consolidated earnings statement may be used to determine the income ratios as provided by any such provisions.
(2) Similarly, for the purpose of determining such income ratios for holding corporations or institutions with subsidiaries, the consolidated earnings statement of parent and subsidiary institutions may be used. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 1, subch. 5, art. 3, § 8).)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3501. Life insurance and annuities

§ 3501. Life insurance and annuities
For all life insurance policies and annuity contracts, the insurer shall maintain reserves as required by chapter 103, subchapter 4 of this title. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 1, subch. 6, § 1).)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3502. Insurance—Other life insurance and annuities

§ 3502. Insurance—Other life insurance and annuities
For all policies of insurance other than life insurance and annuities, the insurer shall maintain reserves which shall place a sound value on its liabilities under such policies and which shall not be less than the reserves according to appropriate standards set forth in regulations issued by the Commissioner and, in no event, less in the aggregate than the pro rata gross unearned premium reserve for such policies. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 1, subch. 6, § 2).)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3503. Deposits of domestic insurer doing foreign business

§ 3503. Deposits of domestic insurer doing foreign business
(a) A domestic insurer may deposit with the Treasurer of this State or with the comptroller or chief financial officer of another state or country funds or securities of the insurer which the laws of such state or country require to enable such insurer to establish agencies or prosecute the business of insurance within such state or country. The Treasurer of this State shall safely keep such securities so deposited with him or her for the benefit of the policyholders of the insurer, but it may receive interest or dividends from the securities, or exchange them for others of equal value.
(b) If such insurer discontinues doing business in such other states or countries, it may at any time bring an action in the Superior Court against the State of Vermont, provided such deposit is made with the Treasurer of this State, to enforce, administer, or terminate the trust created by such deposit. The process in such action shall be served on the State Treasurer and the Commissioner, who shall appear and answer on behalf of the State. On proof by such company that it has paid or made sufficient provision for the payment of all liabilities arising from business written or transacted in such other states and countries, the court may make such orders and decrees for the payment or return of such funds or securities, or any part thereof, as shall protect the rights of all interested parties and the State Treasurer shall comply therewith. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 1, subch. 7, § 1).)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3504. Pension system

§ 3504. Pension system
An insurance company now or hereafter organized and doing business under the laws of this State, in addition to all other powers granted to it by law, may provide a pension in pursuance of the terms of a retirement plan, adopted by its board of directors and approved by the Commissioner, for any person who is or has been an employee of such company, and who shall retire by reason of age or disability, and may further provide that, if such employee shall contribute to a retirement fund established under such retirement plan, and shall thereafter retire from the service of the company for reasons other than age or disability, the employee may withdraw from such fund the amount of the employee’s contribution thereto with interest thereon at such rate, if any, and subject to such rules and regulations, as may be provided by the board of directors. However, such a company shall not grant a pension after the death of an officer, director, or trustee thereof, to a member of his or her family, or to his or her estate or to any other person for the benefit thereof. For the purposes of this section, the word “employee” shall include a salaried officer or an employee of such company and, in the case of a life insurance company, a soliciting or general agent of such company and an employee of such general agent, whether or not the person for whom such pension is to be provided is or shall be deemed for any other purpose an employee of such company. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 1, subch. 7, § 2); amended 2007, No. 49, § 5.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3542. Grounds for disapproval

§ 3542. Grounds for disapproval
The Commissioner shall disapprove any form filed under this subchapter or withdraw any previous approval thereof, only on one or more of the following grounds:
(1) if it is in any respect in violation of or does not comply with this act;
(2) if it contains or incorporates by reference, where such incorporation is otherwise permissible, any inconsistent, ambiguous, or misleading clauses, or exceptions and conditions which deceptively affect the risk purported to be assumed in the general coverage of the contract;
(3) if it has any title, heading, or other indication of its provisions which is misleading;
(4) if it is printed or otherwise reproduced in such manner as to render any provision of the form substantially illegible. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 1, subch. 8, § 2).)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3543. Existing forms and filings

§ 3543. Existing forms and filings
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 which did not exist under laws in force immediately prior to such effective date. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 1, subch. 8, § 3).)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3552. Fees assessed by the National Association of Insurance Commissioners

§ 3552. Fees assessed by the National Association of Insurance Commissioners
A company domiciled in this State and licensed by the Commissioner of Financial Regulation under this title, including captive insurance companies and risk retention groups licensed under chapter 141 of this title shall not be required to pay any fee, assessment, or charge of any kind to the National Association of Insurance Commissioners, including annual statement filing fees, securities valuation fees, and any other such fees, assessments, and charges determined by the Commissioner to be necessary for such companies to do business, unless such fees, assessments, or charges have been established and authorized in rules adopted by the Commissioner. (Added 1995, No. 83 (Adj. Sess.), § 3; amended 1995, No. 180 (Adj. Sess.), § 38(a); 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3562. Time reports due

§ 3562. Time reports due
Reports of all insurance companies shall be made annually, on or before March 1 for the year ending December 31, or within any extension of time not to exceed 30 days which the Commissioner for good cause may have granted. Whenever the Commissioner deems it necessary, the Commissioner may demand an additional statement of the affairs of any company transacting business in this State. (1967, No. 344 (Adj. Sess.), § 1 (ch. 1, subch. 9, § 2); amended 1981, No. 15, § 2; 2001, No. 71, § 6, eff. June 16, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3563. Examination of companies; fees

§ 3563. Examination of companies; fees
The Commissioner shall thoroughly inspect and examine the affairs of each domestic insurer to ascertain its financial condition, its ability to fulfill its obligations, and whether it has complied with the provisions of law. Such an inspection and examination shall be conducted personally or by a competent person appointed by the Commissioner at least every three years and whenever determined to be prudent by the Commissioner. The Commissioner may enlarge the aforesaid three-year period to five years, provided the insurer is subject to a comprehensive annual audit during such period of a scope satisfactory to the Commissioner by independent auditors approved by the Commissioner. The examination shall include a review of the financial analysis performed by the Commissioner and shall be conducted in accordance with statutory accounting principles pursuant to guidelines, principles, manuals, instructions, and other procedures promulgated by the National Association of Insurance Commissioners, together with any useful or necessary modifications or adaptations thereof required or approved by the Commissioner. The expenses of the examinations shall be paid to the State by the company or companies examined and the Commissioner of Finance and Management shall issue his or her warrants for the proper charges incurred in all examinations. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 1, subch. 9, § 3); amended 1971, No. 170 (Adj. Sess.), § 1, eff. April 27, 1982; 1983, No. 195 (Adj. Sess.), § 5(b); 1991, No. 101, § 6; 2003, No. 105 (Adj. Sess.), § 5; 2013, No. 29, § 22, eff. May 13, 2013.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3564. Examination of foreign insurers; expenses

§ 3564. Examination of foreign insurers; expenses
(a) At least once every three years and when the Commissioner determines it to be prudent for the protection of policyholders in this State, he or she shall, in like manner, visit and examine or cause to be visited and examined by some competent person whom the Commissioner may appoint for that purpose, any foreign or alien insurer applying for admission or already admitted to do business in this State. The Commissioner may enlarge the aforesaid three-year period to five years. The examination of an alien insurer shall be limited to its insurance transactions and affairs in the United States unless otherwise required by the Commissioner. The examination shall be conducted in accordance with statutory accounting principles pursuant to guidelines, principles, manuals, instructions, and other procedures promulgated by the National Association of Insurance Commissioners, together with any useful or necessary modifications or adaptations thereof required or approved by the Commissioner. Such insurer shall pay the proper charges incurred in such examination, including the expenses of the Commissioner and the expenses and compensation of his or her assistants employed therein. Such examination shall include a computation of the reinsurance reserve.
(b) In lieu of an examination under this section of any foreign or alien insurer licensed in this State, the Commissioner may accept an examination report on the company as prepared by the insurance department for the company’s state of domicile or port-of-entry state. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 1, subch. 9, § 4); amended 1991, No. 101, § 7; 1991, No. 249 (Adj. Sess.), § 2; 1993, No. 12, § 2, eff. April 26, 1993; 1995, No. 83 (Adj. Sess.), § 5; 2003, No. 105 (Adj. Sess.), § 6.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3565. Examination of officers and books

§ 3565. Examination of officers and books
(a) The Commissioner, inspecting an insurance company, may require its officers, or any agent thereof, to exhibit books kept by them relating to their business and may examine under oath such agents and officers and other persons as he or she thinks proper, in relation to the business transactions and conditions of the company.
(b) Every company or person from whom information is sought, its officers, directors, and agents must provide to the examiners appointed by the Commissioner, timely, convenient and free access at all reasonable hours at its offices to all books, records, accounts, papers, documents, and any or all computer or other recordings relating to the property, assets, business, and affairs of the company being examined. The officers, directors, employees, and agents of the company or person shall cooperate in the examination. (Added 1967, No. 344 (Adj. Sess.), § 1, (ch. 1, subch. 9, § 5); amended 1991, No. 249 (Adj. Sess.), § 3.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3566. Penalty for refusal

§ 3566. Penalty for refusal
The Commissioner may suspend, revoke, or nonrenew the license of any company if the company, by its officers, directors, employees, or agents, refuses to submit to examination or to comply with any reasonable written request of the examiners. Any such proceedings for suspension, revocation, or nonrenewal of any license or authority before the Commissioner shall be conducted in accordance with 3 V.S.A. chapter 25. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 1, subch. 9, § 6); amended 1991, No. 249 (Adj. Sess.), § 4.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3567. Liquor liability insurance records

§ 3567. Liquor liability insurance records
(a) All insurers licensed to sell insurance, including nonadmitted insurers with whom certain types of insurance may be placed as permitted by chapter 138 of this title, shall submit the following liquor liability insurance statistics to the Commissioner of Financial Regulation who shall collect and maintain records on the following:
(1) the number of policies written, premiums written, and premiums earned for liquor liability insurance;
(2) the number of claims paid and dollar amount of claims paid; and
(3) the number of claims incurred and dollar amount of claims incurred.
(b) The Commissioner of Financial Regulation shall make available to the General Assembly the information collected and maintained under this section. The Commissioner shall report to the General Assembly the number of companies writing liquor liability insurance.
(c) If an insurer cannot determine the amount of premiums written or premiums earned because the liquor liability coverage is part of a policy or policies providing other liability coverage, reasonable methods of estimation may be used as approved by the Commissioner of Financial Regulation.
(d) “Liquor liability insurance” means that type of liability insurance which covers the selling or serving of alcoholic beverages for a consideration and includes policies which provide other liability coverage in addition to liquor liability insurance. (Added 1987, No. 103, § 5; amended 1989, No. 155 (Adj. Sess.), § 1; 1989, No. 225 (Adj. Sess.), § 25(b); 1995, No. 180 (Adj. Sess.), § 38(a).)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3568. Preservation of records

§ 3568. Preservation of records
(a) Every domestic and foreign insurer shall preserve their business records in accordance with the rules adopted under this section.
(b) The Commissioner may by rule require insurers to preserve any records relating to the business of insurance as are necessary for efficient and effective insurance regulation.
(c) If a record is disposed of in accordance with rules adopted by the commissioner, an insurer shall be under no duty to produce the record in any administrative or judicial proceeding.
(d) The rules adopted by the Commissioner may designate methods of reproduction of records into electronic, microfilm or microfiche form, or other process. Any such reproduction shall have the same force and effect as the original and may be admitted in evidence as the original itself. (Added 1989, No. 155 (Adj. Sess.), § 2.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3569. National Association of Insurance Commissioners filing requirements

§ 3569. National Association of Insurance Commissioners filing requirements
(a) Each domestic, foreign, and alien insurer who is authorized to transact insurance in this State shall annually on or before March 1 of each year, or within any extension of time not to exceed 30 days which the Commissioner, for good cause may have granted, file with the National Association of Insurance Commissioners a copy of its annual statement convention blank as prescribed and adopted by the National Association of Insurance Commissioners, along with such additional filings as prescribed by the Commissioner for the preceding year. The information filed with the National Association of Insurance Commissioners shall be in the same format and scope as that required by the Commissioner and shall include the signed jurat page and the actuarial certification. Any amendments and addendums to the annual statement filing subsequently filed with the Commissioner shall also be filed with the National Association of Insurance Commissioners. The Commissioner in his or her sole discretion may waive one or more of the requirements established by this subsection.
(b) Foreign insurers that are domiciled in a state which has a law substantially similar to subsection (a) of this section shall be deemed in compliance with this section. (Added 1991, No. 101, § 8; amended 2013, No. 29, § 23.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3570. Immunity

§ 3570. Immunity
In the absence of actual malice, members of the National Association of Insurance Commissioners, their duly authorized committees, subcommittees, and task forces, their delegates, National Association of Insurance Commissioners’ employees, and all others charged with the responsibility of collecting, reviewing, analyzing, and disseminating the information developed from the filing of the annual statement convention blanks shall be acting as agents of the Commissioner under the authority of this act and shall not be subject to civil liability for libel, slander, or any other cause of action by virtue of their collection, review, and analysis or dissemination of the data and information collected from the filings required hereunder. The immunity conferred by this section shall not apply if the Commissioner, in his or her sole discretion, determines that the National Association of Insurance Commissioners has substantially failed to comply with the provisions of section 3551 of this title, or has imposed fees, assessments, or charges in excess of those provided in section 3552 of this title. (Added 1991, No. 101, § 9; amended 1995, No. 83 (Adj. Sess.), § 6.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3571. Confidentiality

§ 3571. Confidentiality
All financial analysis ratios and examination synopses concerning insurance companies that are submitted to the Department by the National Association of Insurance Commissioners’ Insurance Regulatory Information System are confidential and may not be disclosed by the Department. (Added 1991, No. 101, § 10.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3572. Revocation of certificate of authority

§ 3572. Revocation of certificate of authority
The Commissioner may suspend, revoke, or refuse to renew the certificate of authority of any insurer failing to file its annual statement when due or within any extension of time which the Commissioner, for good cause, may have granted. (Added 1991, No. 101, § 11.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3573. Conduct of examinations

§ 3573. Conduct of examinations
(a) Upon determining that an examination should be conducted, the Commissioner or the Commissioner’s designee shall issue an examination order appointing one or more examiners to perform the examination and instructing them as to the scope of the examination. In conducting a financial or a market conduct examination, the examiner shall observe those guidelines and procedures set forth in the Examiners’ Handbook adopted by the National Association of Insurance Commissioners as amended from time to time. The Commissioner may also use such other guidelines or procedures as the Commissioner may deem necessary or appropriate under the circumstances.
(b) When making an examination under this section, the Commissioner may retain attorneys, appraisers, independent actuaries, independent certified public accountants, or other professionals and specialists, the cost of which shall be borne by the company which is the subject of the examination.
(c) The Commissioner is authorized to terminate or suspend any examination in order to pursue other legal or regulatory action pursuant to the insurance laws of this State.
(d) Findings of fact made pursuant to any examination shall be prima facie evidence in any legal or regulatory action.
(e) The Commissioner is authorized to use and make public any final or preliminary examination report, any examiner or company work papers or other documents, or any other information discovered or developed during the course of any examination in the furtherance of any legal or regulatory action. (Added 1991, No. 249 (Adj. Sess.), § 5; amended 1999, No. 38, § 1, eff. May 20, 1999.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3575. Conflict of interest

§ 3575. Conflict of interest
(a) No examiner may be appointed by the Commissioner if such examiner, either directly or indirectly, has a conflict of interest or is affiliated with the management of or owns a pecuniary interest in any person subject to examination under this subchapter. This section shall not be construed to disqualify an examiner who is:
(1) a policyholder or claimant under an insurance policy;
(2) a grantor of a mortgage or similar instrument on the examiner’s residence to a regulated entity if done under customary terms and in the ordinary course of business;
(3) an investment owner in shares of regulated diversified investment companies; or
(4) a settlor or beneficiary of a “blind trust” into which any otherwise impermissible holdings have been placed.
(b) Notwithstanding the requirements of this section, the Commissioner may retain from time to time, on an individual basis, qualified actuaries, certified public accountants, or other similar individuals who are independently practicing their professions, even though said persons may from time to time be similarly employed or retained by persons subject to examination under this subchapter. (Added 1991, No. 249 (Adj. Sess.), § 7.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3576. Immunity from liability

§ 3576. Immunity from liability
(a) No insurer nor any of its officers, employees, or agents shall have a cause of action against an authorized representative of the Commissioner or an examiner appointed by the Commissioner as a result of any statements made or work performed in good faith while carrying out the provisions of this subchapter.
(b) No cause of action shall arise, nor shall any liability be imposed against any person for the act of communicating or delivering information or data to the Commissioner or the Commissioner’s authorized representative or examiner pursuant to an examination made under this section, if such act of communication or delivery was performed in good faith.
(c) This section does not abrogate or modify in any way any common law or statutory privilege or immunity heretofore enjoyed by any person identified in subsection (a) or (b) of this section.
(d) A person identified in subsection (a) or (b) of this section shall be entitled to an award of attorney’s fees and costs if he or she is the prevailing party in a civil cause of action for libel, slander, or any other relevant tort arising out of activities in carrying out the provisions of this subchapter and the party bringing the action was not substantially justified in doing so. For purposes of this section, a proceeding is “substantially justified” if it had a reasonable basis in law or fact at the time that it was initiated. (Added 1991, No. 249 (Adj. Sess.), § 8.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3578a. Annual financial reporting

§ 3578a. Annual financial reporting
The Commissioner shall adopt by rule the Annual Financial Reporting Model Regulation of the National Association of Insurance Commissioners, as may be amended from time to time, or in the Commissioner’s discretion a regulation substantially similar thereto. (Added 2009, No. 42, § 7; amended 2013, No. 29, § 25, eff. May 13, 2013.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3581. Purpose; scope; intent

§ 3581. Purpose; scope; intent
(a) The purpose of this subchapter is to provide the requirements for maintaining a risk management framework and completing an Own Risk and Solvency Assessment (ORSA) and provide guidance and instructions for filing an ORSA Summary Report with the Commissioner.
(b) The requirements of this subchapter shall apply to all insurers domiciled in this State unless exempt under section 3586 of this subchapter.
(c) The General Assembly finds and declares that the ORSA Summary Report will contain confidential and sensitive information related to an insurer’s or insurance group’s identification of risks material and relevant to the insurer or insurance group filing the report. This information will include proprietary and trade secret information that has the potential for harm and competitive disadvantage to the insurer or insurance group if the information is made public. It is the intent of the General Assembly that the summary report required under this subchapter shall be a confidential document filed with the Commissioner, that it shall be shared only as stated in this subchapter and to assist the Commissioner in the performance of his or her duties, and that in no event shall the summary report be subject to public inspection and copying under the Public Records Act. (Added 2013, No. 29, § 44, eff. Jan. 1, 2015.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3582. Definitions

§ 3582. Definitions
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(5) of this title.
(2) “Insurer” shall have the same meaning as in subdivision 3681(6) 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. (Added 2013, No. 29, § 44, eff. Jan. 1, 2015.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3583. Risk management framework

§ 3583. Risk management framework
An insurer shall maintain a risk management framework to assist the insurer with identifying, assessing, monitoring, managing, and reporting on its material and relevant risks. This requirement may be satisfied if the insurance group of which the insurer is a member maintains a risk management framework applicable to the operations of the insurer. (Added 2013, No. 29, § 44, eff. Jan. 1, 2015.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3584. ORSA requirement

§ 3584. ORSA requirement
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. (Added 2013, No. 29, § 44, eff. Jan. 1, 2015.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3585. Summary report

§ 3585. Summary report
(a) Upon the Commissioner’s request and no more than once each year, an insurer shall submit to the Commissioner a summary report or any combination of reports that together contain the information described in the Guidance Manual applicable to the insurer or the insurance group of which it is a member. Notwithstanding any request from the Commissioner, if the insurer is a member of an insurance group, the insurer shall submit the report required by this subsection if the Commissioner is the lead state commissioner of the insurance group as determined by the procedures within the Financial Analysis Handbook adopted by the NAIC.
(b) Each report shall include a signature of the insurer or insurance group’s chief risk officer or other executive having responsibility for the oversight of the insurer’s enterprise risk management process attesting to the best of his or her belief and knowledge that the insurer applies the enterprise risk management process described in the summary report and that a copy of the report has been provided to the insurer’s board of directors or the appropriate committee thereof.
(c) An insurer may comply with subsection (a) of this section by providing the most recent and substantially similar report provided by the insurer or another member of an insurance group of which the insurer is a member to the commissioner of another state or to a supervisor or regulator of a foreign jurisdiction if that report provides information that is comparable to the information described in the Guidance Manual. Any such report in a language other than English must be accompanied by a translation of that report into the English language. (Added 2013, No. 29, § 44, eff. Jan. 1, 2015.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3587. Contents of ORSA summary report

§ 3587. Contents of ORSA summary report
(a) The summary report shall be prepared consistent with the ORSA Guidance Manual, subject to the requirements of subsection (b) of this section. Documentation and supporting information shall be maintained and made available upon examination or upon request of the Commissioner.
(b) The review of the summary report, and any additional requests for information, shall be made using similar procedures currently used in the analysis and examination of multistate or global insurers and insurance groups. (Added 2013, No. 29, § 44, eff. Jan. 1, 2015.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3589. Sanctions

§ 3589. Sanctions
Any insurer failing without just cause to timely file the summary report as required by this subchapter shall be required, after notice and hearing, to pay a penalty of $10,000.00 for each day’s delay, to be recovered by the Commissioner, and the penalty so recovered shall be paid into the General Fund of this State. The maximum penalty under this section is $1,000,000.00. 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. (Added 2013, No. 29, § 44, eff. Jan. 1, 2015.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3604. Offset

§ 3604. Offset
(a) In all cases of mutual debts or mutual credits between the insurer and another person in connection with any action or proceeding under this chapter, such credits and debits shall be set off and the balance only shall be allowed or paid, except as provided in subsection (b) of this section. Any remaining debit of the insolvent insurer after offset under this section shall be treated as provided by section 3595 of this title.
(b) No offset shall be allowed in favor of any such person where:
(1) the obligation of the insurer to such person would not at the date of the entry of any liquidation order or otherwise entitle him or her to share as a claimant in the assets of the insurer;
(2) the obligation of the insurer to such person was purchased by or transferred to such person with a view of its being used as an offset;
(3) the obligation of such person is to pay an assessment levied against the members of a mutual insurer, or against the subscribers of a reciprocal insurer, or is to pay a balance upon the subscription to the capital stock of a stock insurer; or
(4) the obligation of the person is to pay premiums whether earned or unearned, to the insurer, unless provided for otherwise in a final order for liquidation issued by the Commissioner or approved by a court of competent jurisdiction. (Added 1985, No. 145 (Adj. Sess.), § 6.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3611. Scope of subchapter; short title

§ 3611. Scope of subchapter; short title
This subchapter shall apply to all kinds of direct insurance, except life, title, surety, health, credit, mortgage guaranty, and ocean marine insurance. This subchapter shall be known as the Vermont Property and Casualty Insurance Guaranty Association Act. (Added 1969, No. 279 (Adj. Sess.), § 2; amended 1979, No. 18, § 6.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3612. Definitions

§ 3612. Definitions
As used in this subchapter:
(1) “Account” means any one of the three accounts created under section 3613 of this title.
(2) “Association” means the Vermont Property and Casualty Insurance Guaranty Association created under section 3613 of this title.
(3) “Commissioner” means the Commissioner of Financial Regulation.
(4) “Covered claim” means an unpaid claim, including a claim for unearned premiums:
(A) which is asserted against an insurer which becomes an insolvent insurer after the effective date of this chapter or against the insured of such an insurer; and
(B) which arises out of and is in an amount not in excess of the applicable limits of an insurance policy to which this subchapter applies; and
(C)(i) where the claimant or insured is a resident of this State at the time of the insured event; or
(ii) where the claim arises from property permanently located in this State; and
(D) which does not include a claim for services rendered to or for the insolvent insurer; and
(E) which does not include any amount due any reinsurer, insurer, insurance pool or underwriting association; provided, that claims which would be covered claims but for this subdivision may be filed directly with the receiver of the insolvent insurer and shall not be asserted against an insured of the insolvent insurer.
(5) “Insolvent insurer” means an insurer, including a cooperative fire insurance corporation existing under the authority of chapter 105, subchapter 2 of this title:
(A) licensed to transact insurance in this State either at the time the policy was issued or when the insured event occurred; and
(B) against whom a final order of liquidation has been entered with a finding of insolvency by a court of competent jurisdiction in the insurer’s state of domicile.
(6) “Member insurer” means any person who:
(A) writes any kind of insurance to which this subchapter applies, including the exchange of reciprocal or interinsurance contracts; and
(B) is licensed to transact business in this State.
(7) “Net direct written premiums” means direct gross premiums written in this State on insurance policies to which this subchapter applies, less return premiums thereon and dividends paid or credited to policyholders on such direct business. “Net direct written premiums” does not include premiums on contracts between insurers or reinsurers.
(8) “Person” means any individual, corporation, partnership, association, or voluntary organization. (Added 1969, No. 279 (Adj. Sess.), § 4; amended 1979, No. 18, § 7; 1989, No. 225 (Adj. Sess.), § 25(b); 1995, No. 180 (Adj. Sess.), § 38(a); 2001, No. 95 (Adj. Sess.), § 1, eff. May 1, 2002.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3613. Creation of Association

§ 3613. Creation of Association
There is created a nonprofit unincorporated legal entity to be known as the Vermont Property and Casualty Insurance Guaranty Association. All insurers defined as member insurers in subdivision 3612(6) of this title shall be and remain members of the Association as a condition of their authority to transact business in this State. The Association shall perform its functions under a plan of operation established and approved under section 3616 of this title and shall exercise its powers through a Board of Directors established under section 3614 of this title. For purposes of administration and assessment, the Association shall be divided into three separate accounts:
(1) the workers’ compensation insurance account;
(2) the automobile insurance account; and
(3) the account for all other insurance to which this subchapter applies. (Added 1969, No. 279 (Adj. Sess.), § 5; amended 1979, No. 18, § 8; 1981, No. 165 (Adj. Sess.), § 1.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 101 - Insurance Companies Generally › § 3614. Board of Directors

§ 3614. Board of Directors
(a) The Board of Directors of the Association shall consist of not less than five nor more than nine persons, at least three of whom shall be persons who are officers, directors, or employees of insurance companies incorporated under the laws of this State, unless there are fewer than three such companies, in which case there shall be one Director for each such company. The Directors shall serve terms as established in the plan of operation. The members of the Board shall be selected by member insurers subject to the approval of the Commissioner. Vacancies on the Board shall be filled for the remaining period of the term by a majority vote of the remaining Board members, subject to the approval of the Commissioner.
(b) In approving selections to the Board, the Commissioner shall consider among other things whether all member insurers are fairly represented.
(c) Members of the Board may be reimbursed from the assets of the association for expenses incurred by them as members of the Board of Directors. (Added 1969, No. 279 (Adj. Sess.), § 6; amended 1979, No. 18, § 9; 2007, No. 178 (Adj. Sess.), § 12.)