reglab/statecodes huggingface dataset:
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 121 - Fraternal Benefit Societies › § 4476. Nonforfeiture benefits, cash surrender values, certificate loans, and other options

§ 4476. Nonforfeiture benefits, cash surrender values, certificate loans, and other options
(a) A society may grant paid-up nonforfeiture benefits, cash surrender values, certificate loans, and such other options as its laws may permit. As to certificates issued on and after November 22, 1959, a society shall grant at least one paid-up nonforfeiture benefit, except in the case of pure endowment, annuity or reversionary annuity, contracts, reducing term insurance contracts or contracts of term insurance of uniform amount of 15 years or less expiring before age 66.
(b) In the case of certificates other than those for which reserves are computed in accordance with subsection (d) of this section, the value of every paid-up nonforfeiture benefit and the amount of any cash surrender value, loan or other option granted shall not be less than the excess, if any, of (1) over (2) as follows:
(1) the reserve under the certificate determined on the basis specified in the certificate; and
(2) the sum of any indebtedness to the society on the certificate, including interest due and accrued, and a surrender charge equal to two and one-half percent of the face amount of the certificate, which, in the case of insurance on the lives of children, shall be the ultimate face amount of the certificate, if death benefits provided under the certificate are graded.
(c) However, in the case of certificates issued on a substandard basis or in the case of certificates, the reserves for which are computed upon the American Men Ultimate Table of Mortality, the term of any extended insurance benefit granted including accompanying pure endowment, if any, may be computed upon the rates of mortality not greater than 130 percent of those shown by the mortality table specified in the certificate for the computation of the reserve.
(d) In the case of certificates for which reserves are computed on the Commissioners 1941 Standard Ordinary Mortality Table, the 1941 Standard Industrial Table, or such later tables as are authorized for use by domestic life insurers, every paid-up nonforfeiture benefit and the amount of any cash surrender value, loan, or other option granted shall not be less than the corresponding amount ascertained in accordance with the provisions of the laws of this State applicable to life insurance companies issuing policies containing like insurance benefits based upon such tables. (Added 1959, No. 197, § 16, eff. Nov. 22, 1959; amended 1985, No. 111 (Adj. Sess.),§§ 2, 3, eff. April 8, 1986; amended 2021, No. 105 (Adj. Sess.), § 191, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 121 - Fraternal Benefit Societies › § 4477. Beneficiaries

§ 4477. Beneficiaries
(a) The member shall have the right at all times to change the beneficiary or beneficiaries in accordance with the constitution, laws, or rules of the society. Every society by its constitution, laws, or rules may limit the scope of beneficiaries and shall provide that no beneficiary shall have or obtain any vested interest in the proceeds of any certificate until the certificate has become due and payable in conformity with the provisions of the insurance contract.
(b) A society may provide for the payment of funeral benefits to the extent of such portion of any payment under a certificate as might reasonably appear to be due to any person equitably entitled to such benefits by reason of having incurred expense occasioned by the burial of the member, provided the portion paid shall not exceed the sum of $500.00.
(c) If, at the death of any member, there is no lawful beneficiary to whom the insurance benefits are payable, the amount of the benefits, except to the extent that funeral benefits may be paid as provided in this section, shall be payable to the personal representative of the deceased member. (Added 1959, No. 197, § 17, eff. Nov. 22, 1959; amended 2021, No. 105 (Adj. Sess.), § 192, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 121 - Fraternal Benefit Societies › § 4478. Benefits not attachable

§ 4478. Benefits not attachable
No money or other benefit, charity, relief, or aid to be paid, provided, or rendered by any society, shall be liable to attachment, trustee, or other process, or to be seized, taken, appropriated, or applied by any legal or equitable process or operation of law to pay any debt or liability of a member or beneficiary, or any other person who may have a right thereunder, either before or after payment by the society. (Added 1959, No. 197, § 18, eff. Nov. 22, 1959.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 121 - Fraternal Benefit Societies › § 4479. The contract

§ 4479. The contract
(a) Every society authorized to do business in this State shall issue to each benefit member a certificate specifying the amount of benefits provided under the certificate. The certificate, together with any attached riders or endorsements, the charter or articles of incorporation, the constitution and laws of the society, the application for membership, and declaration of insurability, if any, signed by the applicant, and all amendments to each thereof, shall constitute the agreement, as of the date of issuance, between the society and the member, and the certificate shall so state. A copy of the application for membership and of the declaration of insurability, if any, shall be endorsed upon or attached to the certificate.
(b) All statements purporting to be made by the member shall be representations and not warranties. Any waiver of this provision shall be void.
(c) Any changes, additions, or amendments to the charter or articles of incorporation, constitution, or laws duly made or enacted subsequent to the issuance of the certificate, shall bind the member and the beneficiaries and shall control the agreement in all respects the same as though the changes, additions, or amendments had been made before and were in force at the time of the application for membership, except that no change, addition, or amendment shall destroy or diminish benefits that the society contracted to give the member as of the date of issuance.
(d) Copies of any of the documents mentioned in this section, certified by the secretary or corresponding officer of the society, shall be received in evidence of the terms and conditions thereof.
(e) A society shall provide in its constitution or laws that if its reserves as to all or any class of certificates become impaired, its board of directors or corresponding body may require that there shall be paid by the member to the society the amount of the member’s equitable proportion of the deficiency as ascertained by its board, and that if the payment be not made, it shall stand as an indebtedness against the certificate and draw interest not to exceed five percent a year compounded annually. (Added 1959, No. 197, § 19, eff. Nov. 22, 1959; amended 2021, No. 105 (Adj. Sess.), § 193, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 121 - Fraternal Benefit Societies › § 4481. Accident and health insurance and total and permanent disability insurance certificates; filing and approval

§ 4481. Accident and health insurance and total and permanent disability insurance certificates; filing and approval
(a) No domestic, foreign, or alien society authorized to do business in this State shall issue or deliver in this State any certificate or other evidence of any contract of accident insurance or health insurance or of any total and permanent disability insurance contract unless and until the form thereof, together with the form of application and all riders of endorsements for use in connection therewith, has been filed with the Commissioner of Financial Regulation. Each filing of a policy, contract, endorsement, rider, or certificate shall be accompanied by payment to the Commissioner of a nonrefundable fee of $50.00 per filing submission.
(b) The Commissioner may adopt rules prescribing the required, optional, and prohibited provisions in the contracts, and the rules shall conform, as far as practicable, to the provisions of chapter 107 of this title. Where the Commissioner deems inapplicable, either in part or in their entity, the provisions of this chapter, the Commissioner may prescribe the portions or summary of the portions of the contract to be printed on the certificate issued to the member. (Added 1959, No. 197, § 21, eff. Nov. 22, 1959; amended 1989, No. 225 (Adj. Sess.), § 25; 1991, No. 166 (Adj. Sess.), § 7; 1995, No. 180 (Adj. Sess.), § 38; 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012; 2021, No. 105 (Adj. Sess.), § 195, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 121 - Fraternal Benefit Societies › § 4482. Waiver

§ 4482. Waiver
The constitution and laws of the society may provide that no subordinate body, nor any of its subordinate officers or members, shall have the power or authority to waive any of the provisions of the laws and constitution of the society. The provision shall be binding on the society and every member and beneficiary of a member. (Added 1959, No. 197, § 22, eff. Nov. 22, 1959.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 121 - Fraternal Benefit Societies › § 4483. Reinsurance

§ 4483. Reinsurance
A domestic society may, by a reinsurance agreement, cede any individual risk or risks in whole or in part to an insurer (other than another fraternal benefit society) having the power to make such reinsurance and authorized to do business in this State or, if not so authorized, one which is approved by the Commissioner of Financial Regulation, but no such society may reinsure substantially all of its insurance in force without the written permission of the Commissioner of Financial Regulation. It may take credit for the reserves on such ceded risks to the extent reinsured, but no credit shall be allowed as an admitted asset or as a deduction from liability, to a ceding society for reinsurance made, ceded, renewed, or otherwise becoming effective after November 22, 1959, unless the reinsurance is payable by the assuming insurer on the basis of the liability of the ceding society under the contract or contracts reinsured without diminution because of the insolvency of the ceding society. (Added 1959, No. 197, § 23, eff. Nov. 22, 1959; amended 1989, No. 225 (Adj. Sess.), § 25; 1995, No. 180 (Adj. Sess.), § 38; 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 121 - Fraternal Benefit Societies › § 4484. Annual license

§ 4484. Annual license
Societies that are now authorized to transact business in this State may continue such business until May 1, 1960. The authority of the societies, and all societies hereafter licensed, may thereafter be renewed annually, but shall terminate on the first day of the succeeding May. However, a license so issued shall continue in full force until the new license is issued or specifically refused. The society shall pay to the Commissioner of Financial Regulation $300.00 for a license fee for the year of registration and $300.00 as a renewal fee for each year thereafter. A duly certified copy or duplicate of the license shall be prima facie evidence that the licensee is a fraternal benefit society within the meaning of this chapter. (Added 1959, No. 197, § 24, eff. Nov. 22, 1959; amended 1965, No. 56, eff. May 14, 1965; 1989, No. 225 (Adj. Sess.), § 25(b); 1991, No. 166 (Adj. Sess.), § 8; 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 121 - Fraternal Benefit Societies › § 4485. Foreign or alien society; admission

§ 4485. Foreign or alien society; admission
(a) No foreign or alien society may transact business in this State without a license issued by the Commissioner of Financial Regulation. Any such society may be licensed to transact business in this State upon filing with the Commissioner of Financial Regulation:
(1) a duly certified copy of its charter or articles of incorporation;
(2) a copy of its constitution and laws, certified by its secretary or corresponding officer;
(3) a power of attorney to the Secretary of State as prescribed in section 4489 of this title;
(4) a statement of its business under oath of its president and secretary or corresponding officers in a form prescribed by the Commissioner of Financial Regulation, duly verified by an examination made by the supervising insurance official of its home state or other state, territory, province, or country, satisfactory to the Secretary of State of this State;
(5) a certificate from the proper official of its home state, territory, province, or country that the society is legally incorporated and licensed to transact business therein;
(6) copies of its certificate forms; and
(7) such other information as he or she may deem necessary; and upon a showing that its assets are invested in accordance with the provisions of this chapter.
(b) Any foreign or alien society desiring admission to this State shall have the qualifications required of domestic societies organized under this chapter. (Added 1959, No. 197, § 25, eff. Nov. 22, 1959; amended 1989, No. 225 (Adj. Sess.), § 25; 1995, No. 180 (Adj. Sess.), § 38; 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 121 - Fraternal Benefit Societies › § 4487. Suspension, revocation, or refusal of license of foreign or alien society

§ 4487. Suspension, revocation, or refusal of license of foreign or alien society
(a) When the Commissioner of Financial Regulation upon investigation finds that a foreign or alien society transacting or applying to transact business in this State:
(1) has exceeded its powers;
(2) has failed to comply with any of the provisions of this chapter;
(3) is not fulfilling its contracts in good faith; or
(4) is conducting its business fraudulently or in a manner hazardous to its members or creditors or the public; he or she shall notify the society of his or her findings, state in writing the reasons for his or her dissatisfaction and require the society to show cause on a date named why its license should not be suspended, revoked, or refused. If on that date the society does not present good and sufficient reason why its authority to do business in this State should not be suspended, revoked, or refused, he or she may suspend or refuse the license of the society to do business in this State until satisfactory evidence is furnished to him or her that the suspension or refusal should be withdrawn or he or she may revoke the authority of the society to do business in this State.
(b) Nothing contained in this section shall be taken or construed as preventing any such society from continuing in good faith all contracts made in this State during the time the society was legally authorized to transact business in this State. (Added 1959, No. 197, § 27, eff. Nov. 22, 1959; amended 1989, No. 225 (Adj. Sess.), § 25(b); 1995, No. 180 (Adj. Sess.), § 38(a); 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012; 2021, No. 105 (Adj. Sess.), § 197, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 121 - Fraternal Benefit Societies › § 4489. Service of process

§ 4489. Service of process
(a) Every society authorized to do business in this State shall appoint in writing the Secretary of State and each successor in office to be its true and lawful attorney upon whom all lawful process in any action or proceeding against it shall be served, and shall agree in the writing that any lawful process against it which is served on the attorney shall be of the same legal force and validity as if served upon the society, and that the authority shall continue in force so long as any liability remains outstanding in this State. Copies of the appointment, certified by the Secretary of State, shall be deemed sufficient evidence thereof and shall be admitted in evidence with the same force and effect as the original thereof might be admitted.
(b) Service may be made upon the Secretary of State or, if absent, upon the person in charge of the Secretary’s office. It shall be made in duplicate and shall constitute sufficient service upon the society. When legal process against a society is served upon the Secretary of State, the Secretary shall immediately forward one of the duplicate copies by registered mail prepaid, directed to the secretary or corresponding officer.
(c) The service authorized in this section shall be alternative to and not exclusive of any other method of service provided by law or by rule. (Added 1959, No. 197, § 29, eff. Nov. 22, 1959; amended 1971, No. 185 (Adj. Sess.), § 20, eff. March 29, 1972; 2003, No. 70 (Adj. Sess.), § 2, eff. March 1, 2004; 2021, No. 105 (Adj. Sess.), § 199, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 121 - Fraternal Benefit Societies › § 4490. Injunction

§ 4490. Injunction
No action for an injunction against any domestic, foreign, or alien society, or branch thereof, shall be recognized in any court of this State unless made by the Attorney General upon request of the Commissioner of Financial Regulation. (Added 1959, No. 197, § 30, eff. Nov. 22, 1959; amended 1971, No. 185 (Adj. Sess.), § 21, eff. March 29, 1972; 1989, No. 225 (Adj. Sess.), § 25; 1995, No. 180 (Adj. Sess.), § 38; 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 121 - Fraternal Benefit Societies › § 4491. Review

§ 4491. Review
All decisions and findings of the Commissioner of Financial Regulation made under the provisions of this chapter shall be subject to review by appeal to the Supreme Court. (Added 1959, No. 197, § 31, eff. Nov. 22, 1959; amended 1989, No. 225 (Adj. Sess.), § 25; 1995, No. 180 (Adj. Sess.), § 38; 1997, No. 161 (Adj. Sess.), § 8, eff. Jan. 1, 1998; 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 121 - Fraternal Benefit Societies › § 4492. Funds

§ 4492. Funds
(a) All assets shall be held, invested, and disbursed for the use and benefit of the society, and a member or beneficiary shall not have or acquire individual rights in such assets or become entitled to any apportionment or the surrender of any part of such assets, except as provided in the contract.
(b) A society may create, maintain, invest, disburse, and apply any special fund or funds necessary to carry out any purpose permitted by the laws of the society.
(c) Every society, the admitted assets of which are less than the sum of its accrued liabilities and reserves under all of its certificates when valued according to standards required for certificates issued after one year from November 22, 1959 shall, in every provision of the laws of the society for payments by members of the society, in whatever form made, distinctly state the purpose of them and the proportion of them that may be used for expenses, and no part of the money collected for mortuary or disability purposes or the net accretions of such money shall be used for expenses. (Added 1959, No. 197, § 32, eff. Nov. 22, 1959; amended 2021, No. 105 (Adj. Sess.), § 200, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 121 - Fraternal Benefit Societies › § 4493. Investments

§ 4493. Investments
A society shall invest its funds only in such investments as are authorized by the laws of this State for the investment of assets of life insurance companies and subject to the limitations thereon. Any foreign or alien society permitted or seeking to do business in this State that invests its funds in accordance with the laws of the State, district, territory, country, or province in which it is incorporated, shall be held to meet the requirements of this section for the investment of funds. (Added 1959, No. 197, § 33, eff. Nov. 22, 1959.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 121 - Fraternal Benefit Societies › § 4495. Examination of domestic societies

§ 4495. Examination of domestic societies
The Commissioner of Financial Regulation, or any person he or she may appoint, shall have the power of visitation and examination into the affairs of any domestic society, and he or she shall make the examination at least once in every three years. He or she may employ assistants for the purpose of the examination, and he or she, or any person he or she may appoint, shall have free access to all books, papers, and documents that relate to the business of the society. The minutes of the proceedings of the supreme legislative or governing body and of the board of directors or corresponding body of a society shall be in the English language. In making an examination, the Commissioner of Financial Regulation may summon and qualify as witnesses under oath and examine its officers, agents, and employees or other persons in relation to the affairs, transactions, and condition of the society. A summary of the report of the Commissioner of Financial Regulation and such recommendations or statements of the Commissioner of Financial Regulation as may accompany the report, shall be read at the first meeting of the board of directors or corresponding body of the society following the receipt thereof and, if directed so to do by the Commissioner of Financial Regulation, shall also be read at the first meeting of the supreme legislative or governing body of the society following the receipt thereof. A copy of the report, recommendations, and statements of the Commissioner of Financial Regulation shall be furnished by the society to each member of the board of directors or other governing body. The expense of each examination and of each valuation, including compensation and actual expense of examiners, shall be paid by the society examined or whose certificates are valued, upon statements furnished by the Commissioner of Financial Regulation. (Added 1959, No. 197, § 35, eff. Nov. 22, 1959; amended 1989, No. 225 (Adj. Sess.), § 25; 1995, No. 180 (Adj. Sess.), § 38; 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 121 - Fraternal Benefit Societies › § 4496. Examination of foreign and alien societies

§ 4496. Examination of foreign and alien societies
The Commissioner of Financial Regulation, or any person whom he or she may appoint, may examine any foreign or alien society transacting or applying for admission to transact business in this State. He or she may employ assistants, and he or she, or any person he or she may appoint, shall have free access to all books, papers, and documents that relate to the business of the society. He or she may in his or her discretion accept, in lieu of the examination, the examination of the insurance department of the state, territory, district, province, or country where the society is organized. The compensation and actual expenses of the examiners making any examination or general or special valuation shall be paid by the society examined or by the society whose certificate obligations have been valued, upon statements furnished by the Commissioner of Financial Regulation. (Added 1959, No. 197, § 36, eff. Nov. 22, 1959; amended 1989, No. 225 (Adj. Sess.), § 25(b); 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 121 - Fraternal Benefit Societies › § 4497. No adverse publications

§ 4497. No adverse publications
Pending, during, or after an examination or investigation of a society, either domestic, foreign, or alien, the Commissioner of Financial Regulation shall make public no financial statement, report, or finding, nor shall he or she permit to become public any financial statement, report, or finding affecting the status, standing, or rights of any society, until a copy thereof has been served upon the society at its principal office and the society has been afforded a reasonable opportunity to answer the financial statement, report, or finding and to make such showing in connection therewith as it may desire. (Added 1959, No. 197, § 37, eff. Nov. 22, 1959; amended 1989, No. 225 (Adj. Sess.), § 25; 1995, No. 180 (Adj. Sess.), § 38; 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 121 - Fraternal Benefit Societies › § 4498. Misrepresentation

§ 4498. Misrepresentation
(a) No person shall cause or permit to be made, issued, or circulated in any form:
(1) any misrepresentation or false or misleading statement concerning the terms, benefits, or advantages of any fraternal insurance contract now issued or to be issued in this state, or the financial condition of any society;
(2) any false or misleading estimate or statement concerning the dividends or shares of surplus paid or to be paid by any society on any insurance contract; or
(3) any incomplete comparison of an insurance contract of one society with an insurance contract of another society or insurer for the purpose of inducing the lapse, forfeiture, or surrender of any insurance contract. A comparison of insurance contracts is incomplete if it does not compare in detail:
(A) the gross rates, and the gross rates less any dividend or other reduction allowed at the date of the comparison; and
(B) any increase in cash values, and all the benefits provided by each contract for the possible duration thereof as determined by the life expectancy of the insured;
or if it omits from consideration:
(C) any benefit or value provided in the contract;
(D) any differences as to amount or period of rates; or
(E) any differences in limitations or conditions or provisions that directly or indirectly affect the benefits.
(b) In any determination of the incompleteness or misleading character of any comparison or statement, it shall be presumed that the insured had no knowledge of any of the contents of the contract involved.
(c) A person who violates a provision of this section or knowingly receives any compensation or commission by or in consequence of the violation shall be punished by a fine of not less than $500.00 nor more than $2,000.00 or by imprisonment not less than 30 days nor more than one year, or both fine and imprisonment, and shall, in addition, be liable for an administrative penalty in the amount of three times the sum received by the violator as compensation or commission. (Added 1959, No. 197, § 38, eff. Nov. 22, 1959; amended 1971, No. 199 (Adj. Sess.), § 17; 1995, No. 167 (Adj. Sess.), § 16.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 121 - Fraternal Benefit Societies › § 4499. Discrimination and rebates

§ 4499. Discrimination and rebates
(a) No society doing business in this State shall make or permit any unfair discrimination between insured members of the same class and equal expectation of life in the premiums charged for certificates of insurance, in the dividends or other benefits payable thereon or in any other of the terms and conditions of the contracts it makes.
(b) No society, by itself, or any other party, and no agent or solicitor, personally, or by any other party, may offer, promise, allow, give, set off, or pay, directly or indirectly, any valuable consideration or inducement to, or for insurance, on any risk authorized to be taken by the society that is not specified in the certificate. No member may receive or accept, directly or indirectly, any rebate of premium, or part thereof, or agent’s or solicitor’s commission thereon, payable on any certificate or receive or accept any favor or advantage or share in the dividends or other benefits to accrue on, or any valuable consideration or inducement not specified in the contract of insurance. (Added 1959, No. 197, § 39, eff. Nov. 22, 1959.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 121 - Fraternal Benefit Societies › § 4500. Taxation

§ 4500. Taxation
Every society organized or licensed under this chapter is hereby declared to be a charitable and benevolent institution, and all of its funds shall be exempt from all and every state, county, district, municipal, and school tax other than taxes on real estate and office equipment. (Added 1959, No. 197, § 40, eff. Nov. 22, 1959.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 121 - Fraternal Benefit Societies › § 4501. Exemptions

§ 4501. Exemptions
(a) Except as provided in this section, societies are governed by this chapter and are exempt from all other provisions of the insurance laws of this State, not only in governmental relations with the State, but for every other purpose. No law enacted after the effective date of this chapter shall apply to them, unless societies are expressly designated in such law.
(b) The civil marriage laws shall not be construed to affect the ability of a society to determine the admission of its members as provided in section 4464 of this title, or to determine the scope of beneficiaries in accordance with section 4477 of this title, and shall not require a society that has been established and is operating for charitable and educational purposes and that is operated, supervised, or controlled by or in connection with a religious organization to provide insurance benefits to any person if to do so would violate the society’s free exercise of religion, as guaranteed by the First Amendment to the Constitution of the United States or by Chapter I, Article 3 of the Constitution of the State of Vermont. (Added 1959, No. 197, § 41, eff. Nov. 22, 1959; amended 2009, No. 3, § 10, eff. Sept. 1, 2009; 2021, No. 105 (Adj. Sess.), § 202, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 121 - Fraternal Benefit Societies › § 4502. Exemption of certain societies

§ 4502. Exemption of certain societies
(a) Nothing contained in this chapter shall be so construed as to affect or apply to:
(1) grand or subordinate lodges of societies, orders, or associations now doing business in this State that provide benefits exclusively through local or subordinate lodges;
(2) orders, societies, or associations that admit to membership only persons engaged in one or more crafts or hazardous occupations, in the same or similar lines of business, insuring only their own members, their families, and descendants of members, and the ladies’ societies, or ladies’ auxiliaries to the orders, societies, or associations;
(3) domestic societies that limit their membership to employees of a particular city or town, designated firm, business house, or corporation that provide for a death benefit of not more than $400.00 or disability benefits of not more than $350.00 to any person in any one year, or both; or
(4) domestic societies or associations of a purely religious, charitable, or benevolent description, which provide for a death benefit of not more than $400.00 or for disability benefits of not more than $350.00 to any one person in any one year, or both.
(b) A society or association described in subdivision (a)(3) or (4) of this section that provides for death or disability benefits for which benefit certificates are issued, and society or association included in subdivision (a)(4) that has more than 1,000 members, is not exempted from the provisions of this chapter but shall comply with all its requirements.
(c) No society that, by the provisions of this section, is exempt from the requirements of this chapter, except any society described in subdivision (a)(2) of this section, shall give or allow, or promise to give or allow to any person any compensation for procuring new members.
(d) A society that provides for benefits in case of death or disability resulting solely from accident and that does not obligate itself to pay natural death or sick benefits has all of the privileges and is subject to all the applicable provisions and rules of this chapter, except that the provisions of this chapter relating to medical examination, valuations of benefit certificates, and incontestability do not apply to the society.
(e) The Commissioner of Financial Regulation may require from any society or association, by examination or otherwise, such information as will enable him or her to determine whether the society or association is exempt from the provisions of this chapter.
(f) Societies, exempted under the provisions of this section, shall also be exempt from all other provisions of the insurance laws of this State. (Added 1959, No. 197, § 42, eff. Nov. 22, 1959; amended 1989, No. 225 (Adj. Sess.), § 25(b); 1995, No. 180 (Adj. Sess.), § 38(a); 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012; 2021, No. 105 (Adj. Sess.), § 203, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 121 - Fraternal Benefit Societies › § 4503. Penalties

§ 4503. Penalties
(a) Any person who willfully makes a false or fraudulent statement in or relating to an application for membership or for the purpose of obtaining money from or a benefit in a society, shall be fined not less than $500.00 nor more than $2,000.00 or imprisoned not less than 30 days nor more than 90 days, or both.
(b) A person who willfully makes a false or fraudulent statement in any verified report or declaration under oath required or authorized by this chapter, or of any material fact or thing contained in a sworn statement concerning the death or disability of a member for the purpose of procuring payment of a benefit named in the certificate, shall be guilty of perjury and shall be subject to the penalties for perjury prescribed by law.
(c) A person who solicits membership for, or in any manner assists in procuring membership in, any society not licensed to do business in this State shall upon conviction be fined not less than $250.00 nor more than $1,000.00.
(d) A person guilty of a willful violation of, or neglect or refusal to comply with, the provisions of this chapter for which a penalty is not otherwise prescribed, shall upon conviction be subject to a fine of not more than $1,000.00. (1959, No. 197, § 43, eff. Nov. 22, 1959; amended 1971, No. 199 (Adj. Sess.), § 17; 1995, No. 167 (Adj. Sess.), § 17; 2021, No. 105 (Adj. Sess.), § 204, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 123 - Nonprofit Hospital Service Corporations › § 4511. Purposes and definition

§ 4511. Purposes and definition
A corporation may be organized for the purpose of establishing, maintaining, and operating a nonprofit hospital service plan through which hospital care may be provided by a hospital maintained by a corporation organized for hospital purposes to members of the public who become subscribers to the plan under a contract that entitles each subscriber to certain hospital care. As used in this chapter, the term “hospital service corporation” includes any corporation organized under the provisions of this chapter and also any unincorporated association furnishing hospital, medical, surgical, or nursing services, or any combination of these, to subscribers or members, except as provided in section 4519 of this title. (Amended 2021, No. 105 (Adj. Sess.), § 205, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 123 - Nonprofit Hospital Service Corporations › § 4512. Powers

§ 4512. Powers
(a) Such hospital service corporation shall be a nonprofit sharing corporation without capital stock. It shall be maintained and operated solely for the benefit of the subscribers thereof and shall not be authorized to pay money in lieu of hospital service. A person, partnership, association, or corporation shall not contract to furnish hospital service unless authorized so to do pursuant to the provisions of this chapter. Corporations formed under the provisions of this chapter shall have the privileges and be subject to the provisions of Title 11B as well as the applicable provisions of this chapter. In the event of a conflict between the provisions of Title 11B and the provisions of this chapter, the latter shall control.
(b) Subject to the approval of the Commissioner or the Green Mountain Care Board established in 18 V.S.A. chapter 220, as appropriate, a hospital service corporation may establish, maintain, and operate a medical service plan as defined in section 4583 of this title. The Commissioner or the Board may refuse approval if the Commissioner or the Board finds that the rates submitted are excessive, inadequate, or unfairly discriminatory, fail to protect the hospital service corporation’s solvency, or fail to meet the standards of affordability, promotion of quality care, and promotion of access pursuant to section 4062 of this title. The contracts of a hospital service corporation that operates a medical service plan under this subsection shall be governed by chapter 125 of this title to the extent that they provide for medical service benefits, and by this chapter to the extent that the contracts provide for hospital service benefits.
(c) Subject to the approval of the Commissioner, a hospital or medical service corporation may establish, maintain, and operate, or participate in the establishment, maintenance, and operation of, health care services contracts or arrangements, including health maintenance organizations authorized pursuant to chapter 139 of this title, all of which are intended to ensure that subscriber benefits are provided at minimum cost under efficient and economical management. A health maintenance organization established, maintained, or operated under the authority of this subsection shall be organized so that its business and affairs will be managed by a governing board or committee of which a majority are members who are not providers, as those terms are defined in section 5101 of this title. Notwithstanding the foregoing, subject to the approval of the Commissioner, a hospital or medical service corporation may establish, maintain, and operate or participate in the establishment, maintenance, and operation of administrative claims processing services and related services. (Amended 1975, No. 69, § 1, eff. April 18, 1975; 1985, No. 44; 1997, No. 54, §§ 2, 3, eff. June 26, 1997; 2005, No. 36, § 20, eff. June 1, 2005; 2011, No. 48, § 15a, eff. Jan. 1, 2012; 2013, No. 79, § 5f, eff. Jan. 1, 2014.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 123 - Nonprofit Hospital Service Corporations › § 4514. Required contract provisions

§ 4514. Required contract provisions
A contract entered into by a hospital service corporation shall be in writing, one copy of which shall be furnished to the subscriber, and shall contain the following provisions:
(1) A statement of the amount payable to the corporation by the subscriber and the times at which and manner in which such amount is to be paid.
(2) A statement of the nature of the services to be furnished and the period during which they will be furnished and, if there are any services to be excepted, a detailed statement of the exceptions printed as specified in section 4515 of this chapter.
(3) A statement of the terms and conditions, if any, upon which the contract may be canceled or otherwise terminated at the option of either party.
(4) A statement that the contract includes the endorsements thereon and attached papers, if any, and contains the entire contract for services.
(5) A statement that no representation by the subscriber in an application for a contract shall avoid the contract or be used in any legal proceeding under the contract, unless the application or an exact copy of the application is included in or attached to the contract, and that no agent or representative of the corporation, other than an officer designated in the contract, is authorized to change the contract or waive any of its provisions.
(6) A statement that if the subscriber defaults in making any payment under the contract, the subsequent acceptance of a payment by the corporation or by any of its duly authorized agents shall reinstate the contract, but, with respect to sickness and injury, only to cover such sickness as may be first manifested more than 10 days after the date of such acceptance.
(7) A statement of the period of grace that will be allowed the subscriber for making any payment due under the contract. The grace period shall be not less than 10 days. (Amended 2021, No. 105 (Adj. Sess.), § 207, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 123 - Nonprofit Hospital Service Corporations › § 4514a. Part-time employees

§ 4514a. Part-time employees
A nonprofit hospital service corporation shall not exclude part-time employees and shall offer the same insurance benefits to part-time employees as it offers to the employee groups of which the part-time employees would be members if they were full-time employees. The insurer shall offer to include the part-time employees as part of the employer’s employee group, at the full rate to be paid by the employer, at a rate prorated between the employer and the employee, or at the employee’s expense. “Part-time employee” means any employee who works a minimum of at least 17 1/2 hours per week. (Added 1989, No. 34, § 2.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 123 - Nonprofit Hospital Service Corporations › § 4515. Form of contract

§ 4515. Form of contract
In every such contract made, issued, or delivered in this State:
(1) all printed portions shall be plainly printed in type of which the face is not smaller than 10 point;
(2) there shall be a brief description of the contract on its first page and on its filing back in type of which the face is not smaller than 14 point;
(3) the exceptions of the contract shall appear with the same prominence as the benefits to which they apply; and
(4) if the contract contains a provision purporting to make a portion of the articles, constitution, or bylaws of the corporation a part of the contract, such portion thereof shall be set forth in full.
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 123 - Nonprofit Hospital Service Corporations › § 4515a. Form and rate filing; filing fees

§ 4515a. Form and rate filing; filing fees
Every contract or certificate form, or amendment thereof, including the rates proposed to be charged by the corporation, shall be filed with the Commissioner or the Green Mountain Care Board established in 18 V.S.A. chapter 220, as appropriate, for the Commissioner’s or the Board’s approval prior to issuance or use. Prior to approval, there shall be a public comment period pursuant to section 4062 of this title. In addition, each such filing shall be accompanied by payment to the Commissioner or the Board, as appropriate, of a nonrefundable fee of $150.00 and the plain language summary of rate increases pursuant to section 4062 of this title. (Added 1985, No. 236 (Adj. Sess.), § 10; amended 1991, No. 166 (Adj. Sess.), § 10; 2011, No. 48, § 15b, eff. Jan. 1, 2012; 2013, No. 79, § 5h, eff. Jan. 1, 2014; 2021, No. 105 (Adj. Sess.), § 208, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 123 - Nonprofit Hospital Service Corporations › § 4516. Annual report to Commissioner

§ 4516. Annual report to Commissioner
Annually, on or before March 1, a hospital service corporation shall file with the Commissioner of Financial Regulation a statement sworn to by the president and treasurer of the corporation showing its condition on December 31. The statement shall be in such form and contain such matters as the Commissioner shall prescribe. To qualify for the tax exemption set forth in section 4518 of this title, the statement shall include a certification that the hospital service corporation operates on a nonprofit basis for the purpose of providing an adequate hospital service plan to individuals of the State, both groups and nongroups, without discrimination based on age, gender, geographic area, industry, and medical history, except as allowed by subdivisions 4080g(b)(7)(B)(ii) and 4080g(c)(8)(B)(ii) of this title and by 33 V.S.A. § 1811(f)(2)(B). (Amended 1989, No. 225 (Adj. Sess.), § 25; 1991, No. 52, § 3, eff. June 6, 1991; 1995, No. 180 (Adj. Sess.), § 38; 2005, No. 191 (Adj. Sess.), § 52; 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012; 2019, No. 103 (Adj. Sess.), § 23; 2021, No. 105 (Adj. Sess.), § 209, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 123 - Nonprofit Hospital Service Corporations › § 4517. Investments

§ 4517. Investments
Funds of a hospital service corporation may be invested in any prudent investment as permitted for an insurance company formed under chapter 101 of this title. The corporation shall file and obtain the Commissioner’s prior approval of its investment guidelines. Any amendments to the investment guidelines must be approved by the Commissioner prior to use. (Amended 1997, No. 54, § 4, eff. June 26, 1997.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 123 - Nonprofit Hospital Service Corporations › § 4518. Tax exemption

§ 4518. Tax exemption
A hospital service corporation shall be exempt from all forms of taxation except the health care claims tax assessed pursuant to 32 V.S.A. § 10402. (Amended 2003, No. 70 (Adj. Sess.), § 3, eff. March 1, 2004; 2019, No. 6, § 67, eff. April 22, 2019.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 123 - Nonprofit Hospital Service Corporations › § 4519. Application of chapter

§ 4519. Application of chapter
(a) Hospital service corporations or associations formed prior to April 7, 1939 may continue their existence and may fulfill their contracts and enter into new contracts as now written, including provisions in their contracts for medical, surgical, and nursing as well as hospital services, provided that such contracts written after July 1, 1939 shall be subject to the approval of the Commissioner of Financial Regulation as provided in section 4513 of this title.
(b) Except as set forth in subsection (a) of this section, a hospital service plan as described in this chapter shall not be established, maintained, or operated by an unincorporated association. All hospital service corporations organized after April 7, 1939 and their contracts shall be subject to the provisions of this chapter. (Amended 1989, No. 225 (Adj. Sess.), § 25(b); 1995, No. 180 (Adj. Sess.), § 38(a); 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012; 2021, No. 105 (Adj. Sess.), § 210, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 123 - Nonprofit Hospital Service Corporations › § 4520. Reciprocal provisions

§ 4520. Reciprocal provisions
A corporation organized under the laws of another state or country that, except as to state of organization, is a hospital service corporation as defined by section 4511 of this title, and that the Commissioner finds has fully complied with the laws of such other state or country, shall be entitled to do business within this State, subject to the provisions of this chapter, after obtaining a license as provided by section 4513 of this title. But such corporation organized under the laws of another state or country shall not be entitled to such license or to do business in this State unless such other state or country grants substantially similar rights and privileges to hospital service corporations organized under the laws of this State. The Commissioner shall determine whether rights and privileges granted by other states or countries are substantially similar to those granted by this State, and his or her determination shall be final.
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 123 - Nonprofit Hospital Service Corporations › § 4521. Effect on liability under workers’ compensation law

§ 4521. Effect on liability under workers’ compensation law
The provisions of this chapter or any contract for hospital service shall in no way affect the liability of an employer under the provisions of the workers’ compensation law. (Amended 1981, No. 165 (Adj. Sess.), § 1.)