Vermont Statutes Title 8 Sec. 5026
Terms Used In Vermont Statutes Title 8 Sec. 5026
- Commissioner: means the Commissioner of Financial Regulation. See
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Home state: means , with respect to an insured:
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- NAIC: means the National Association of Insurance Commissioners. See
- State: when applied to the different parts of the United States may apply to the District of Columbia and any territory and the Commonwealth of Puerto Rico. See
- Surplus lines broker: means an individual licensed under this chapter and chapter 131 of this title. See
- Surplus lines insurance: means coverage not procurable from admitted insurers. See
- Surplus lines insurer: means a non-admitted insurer with which insurance coverage may be placed under this chapter. See
§ 5026. Solvent insurers required
(a) Where Vermont is the home state of the insured, surplus lines brokers shall not knowingly place or continue surplus lines insurance with surplus lines insurers who are insolvent or unsound financially, and in no event shall any surplus lines broker place any insurance with a non-admitted insurer unless such insurer:
(1) has and maintains capital and surplus or its equivalent under the laws of its domiciliary jurisdiction that equals the greater of:
(A) the minimum capital and surplus requirements under the law of this State; or
(B) $15,000,000.00; and
(2) if an alien insurer is listed on the quarterly listing of alien insurers maintained by the NAIC international insurers department.
(b) Notwithstanding the capital and surplus requirements of this section, a surplus lines insurer may receive approval upon an affirmative finding of acceptability by the Commissioner. The finding shall be based upon such factors as quality of management, capital, and surplus of any parent company, company underwriting profit and investment-income trends, market availability, and company record and reputation within the industry. In no event, however, shall the Commissioner make an affirmative finding of acceptability when the surplus lines insurer’s capital and surplus is less than $4,500,000.00.
(c) The Commissioner may from time to time publish a list of all non-admitted insurers deemed by him or her to be currently eligible surplus lines insurers under the provisions of this section, and shall mail a copy of such list to each surplus lines broker. This subsection shall not be deemed to cast upon the Commissioner the duty of determining the actual financial condition or claims practices of any non-admitted insurer; and the status of eligibility, if granted by the Commissioner, shall indicate only that the insurer appears to be sound financially and to have satisfactory claims practices, and that the Commissioner has no credible evidence to the contrary. While any such list is in effect, the surplus lines broker shall restrict to the insurers so listed all surplus lines insurance business placed by him or her. However, upon the request of a surplus lines broker or an insured, the Commissioner may deem a non-admitted insurer to be an eligible surplus lines insurer for purposes of this subsection prior to publication of the name of such surplus lines insurer on the list. (Added 1979, No. 50, § 2; amended 1979, No. 197 (Adj. Sess.), § 4; 1985, No. 236 (Adj. Sess.), § 4, eff. June 3, 1986; 1989, No. 249 (Adj. Sess.), § 1; 1993, No. 235 (Adj. Sess.), § 5, eff. June 21, 1994; 2001, No. 97 (Adj. Sess.), § 19; 2007, No. 49, § 7; 2011, No. 49, § 5, eff. May 26, 2011; 2019, No. 57, § 7.)