Code of Vermont Rules › Agency 21 - DEPARTMENT OF FINANCIAL REGULATION › Sub-Agency 020 - INSURANCE DIVISION › Chapter 064 - HOLDING COMPANY SYSTEM REGULATIONS FOR RISK RETENTION GROUPS CHARTERED IN VERMONT (C-2012-2) › Section 21 020 064 - HOLDING COMPANY SYSTEM REGULATIONS FOR RISK RETENTION GROUPS CHARTERED IN VERMONT (C-2012-2)

Current through June, 2024
Section 1 Authority
This regulation is promulgated under the authority granted to
				  the commissioner by Title 8 V.S.A. §
										15, Title
				  8 V.S.A. §
											6015, and Title
				  8 V.S.A.§
											6052(e), to implement the
				  provisions of the Vermont Insurance Holding Companies Act, Title 8 V.S.A.
				  Chapter 101, Subchapter 13, §§ 3681 et. seq. (the "Holding Companies
				  and Subsidiaries Act" or "Act"), with respect to risk retention groups
				  chartered in Vermont.
Section
				2 Scope and Purpose of Regulation
(a) The purpose of this regulation is to set
				forth rules and procedural requirements which the commissioner deems necessary
				to carry out the provisions of 8 V.S.A. chapter 101, Subchapter 13, which
				relates to holding companies and subsidiaries with respect to risk retention
				groups chartered in this state.
(b)
				This regulation applies to risk retention groups chartered in this State unless
				specifically exempted under subsection (c) set forth below or as otherwise
				provided in the Act. Except as specifically incorporated by reference into this
				regulation, risk retention groups are not subject to Regulation 71-2, or to any
				successor regulation or order, which are in effect as of the effective date of
				this regulation. Any exemption provided in this regulation shall not be
				construed to exempt, limit, or modify a risk retention group's obligations to
				comply with the provisions of 8 V.S.A. Chapters 141 and 142 and any regulation
				or order of the commissioner applicable to risk retention groups, and this
				regulation shall not be construed to limit or modify the commissioner's powers
				to enforce such provisions with respect to any risk retention group.
(c) The commissioner may exempt:
(1) Any risk retention group or class of risk
				retention groups from any provision of this regulation, when the commissioner
				deems the exemption consistent with the purposes of this regulation;
				or
(2) Upon request of the person
				required to supply information or perform an act, that person from any
				provision of this regulation when the commissioner deems the exemption
				consistent with the purposes of this regulation; or
(3) Any risk retention group not otherwise
				exempt or excepted from the requirements of 8 V. S.A. § 3684 pursuant to a
				written request by such risk retention group to the commissioner, setting forth
				its reasons for requesting exemption. Any such exemption given by the
				commissioner may, at a later date, be withdrawn by the commissioner by giving
				written notice to the risk retention group, provided the risk retention group
				is not otherwise exempt under the law.
(d) The purposes of this regulation include:
(1) Exercising surveillance over the
				acquisition of a risk retention group, to ensure that in the process of making
				it part of an insurance holding company system, the interests of policyholders,
				shareholders, and the public are not subject to undue risk; and
(2) Providing the regulatory monitoring of
				those intercorporate relationships and transactions among affiliates within an
				insurance holding company system that may affect the solvency of risk retention
				groups.