2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 147 - Legacy Insurance Transfers › § 7111. Definitions

§ 7111. Definitions
As used in this chapter:
(1) “Assuming company” means a Vermont-domiciled company established specifically to acquire a closed block under a legacy insurance transfer plan approved by the Commissioner.
(2) “Closed block” means a block, line, or group of commercial non-admitted insurance policies or reinsurance agreements or both:
(A) that a transferring insurer has ceased to offer, write, or sell to new applicants;
(B) for which all policy periods have been fully expired for not less than 60 months;
(C) for which active premiums are no longer being paid; and
(D) that is not workers’ compensation, health, life, or any other personal line of insurance.
(3) “Comment period” means the 60-day period starting on the date notice is issued by an assuming company under subsection 7112(h) of this chapter. The Commissioner may, in his or her discretion, extend the comment period for up to an additional 30 days.
(4) “Commissioner” means the Commissioner of Financial Regulation.
(5) “Controlling party” means a person having control of an assuming company or transferring insurer. “Control” shall have the same meaning as in section 3681 of this title.
(6) “Department” means the Department of Financial Regulation.
(7) “Domicile regulator” means the primary insurance regulatory authority of the domicile jurisdiction of a transferring insurer.
(8) “Inward reinsurance agreement” means a contract of reinsurance between a transferring insurer and another insurance company with respect to which a transferring insurer is a party as the reinsurer.
(9) “Inward reinsurance counterparty” means an insurance company, other than the transferring insurer, that is a party to an inward reinsurance agreement as the reinsured.
(10) “Legacy insurance transfer” means the transfer of a closed block in accordance with the requirements of this chapter.
(11) “Legacy insurance transfer plan” or “plan” means a plan that sets forth all provisions and includes all documentation regarding a legacy insurance transfer required under subsection 7112(b) of this chapter.
(12) “Non-admitted insurance” means any property and casualty insurance permitted to be placed directly or through a surplus lines broker with a non-admitted insurer eligible to accept such insurance.
(13) “Non-admitted insurer” means, with respect to a state, an insurer not licensed to engage in the business of insurance in such state. The term does not include a risk retention group or a captive insurance company.
(14) “Outward reinsurance agreement” means a contract of reinsurance between a transferring insurer and another insurance company with respect to which a transferring insurer is a party as the reinsured.
(15) “Outward reinsurance counterparty” means an insurance company, other than the transferring insurer, that is a party to an outward reinsurance agreement as the reinsurer.
(16) “Party” means:
(A) the assuming company;
(B) the transferring insurer;
(C) with respect to any policy to be transferred under a plan, each policyholder;
(D) with respect to any inward reinsurance agreement to be transferred under a plan, each inward reinsurance counterparty; and
(E) any other person the Commissioner approves as a party with respect to such proceeding.
(17) “Plan summary” means a written statement of the key terms and provisions of a plan as required under subdivision 7112(b)(19) of this chapter.
(18) “Policy” means a contract of property and casualty insurance that is neither a contract of reinsurance nor a contract of workers’ compensation, health, life, or any other personal line of insurance.
(19) “Policyholder” means the person identified as the policyholder or first named in a policy.
(20) “Reinsurance agreement” means an inward reinsurance agreement or an outward reinsurance agreement.
(21) “Reinsurance agreement counterparty” means an inward reinsurance agreement counterparty or an outward reinsurance counterparty.
(22) “Transferring insurer” means a non-admitted insurer that is transferring a closed block to an assuming company under a legacy insurance transfer plan. (Added 2013, No. 93 (Adj. Sess.), § 3, eff. Feb. 19, 2014.)