§ 5021. Non-Admitted Insurance Act; short title
§ 5021. Non-Admitted Insurance Act; short title This chapter may be cited as the “Non-Admitted Insurance Act.” (Added 1979, No. 50, § 2.)
§ 5022. Definitions
§ 5022. Definitions (a) Notwithstanding subsection (b) of this section, as used in this chapter, unless the context requires otherwise, words and phrases shall have the meaning given under Title V, Subtitle B of the Dodd-Frank Wall Street Reform and Consumer Protection Act, Pub.L. 111-203, as amended. (b) As used in this chapter: (1) “Admitted […]
§ 5023. Surplus lines insurance; authorized
§ 5023. Surplus lines insurance; authorized Surplus lines insurance may be procured from non-admitted insurers, if: (1) The insurance meets the conditions specified in section 5024 of this title; (2) The insurance is placed through a licensed surplus lines broker; (3) The insurer meets the conditions specified in section 5026 of this title; and (4) […]
§ 5023a. Domestic surplus lines insurer; authorized
§ 5023a. Domestic surplus lines insurer; authorized (a) Surplus lines insurance may be procured from a domestic surplus lines insurer if all of the following criteria are met: (1) The board of directors of the insurer has adopted a resolution seeking certification as a domestic surplus lines insurer and the Commissioner has approved such certification. […]
§ 5024. Conditions for placement of insurance
§ 5024. Conditions for placement of insurance (a) Insurance coverage, except as described in section 5025 of this chapter, shall not be placed with a surplus lines insurer unless the full amount of insurance required is not reasonably procurable from admitted insurers actually transacting that kind and class of insurance in this State; and the […]
§ 5025. Exceptions concerning placement of insurance with non-admitted insurers; records
§ 5025. Exceptions concerning placement of insurance with non-admitted insurers; records The provisions of this chapter controlling the placement of insurance with non-admitted insurers shall not apply to life insurance, health insurance, annuities, or reinsurance, nor to the following insurance when so placed by any licensed producer in this State: (1) insurance on subjects whose […]
§ 5026. Solvent insurers required
§ 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 […]
§ 5027. Evidence of the insurance; changes; penalty
§ 5027. Evidence of the insurance; changes; penalty (a) Where Vermont is the home state of the insured, the surplus lines broker, upon placing a domestic risk with a surplus lines insurer, shall promptly deliver to the insured the policy issued by the surplus lines insurer, or if such policy is not then available, a […]
§ 5028. Information required on contract
§ 5028. Information required on contract Where Vermont is the home state of the insured, each surplus lines broker through whom a surplus lines insurance coverage is procured shall endorse on the outside of the policy and on any confirmation of the insurance, his or her name, address and license number, and the name and […]
§ 5029. Surplus lines insurance valid
§ 5029. Surplus lines insurance valid (a) Insurance contracts procured as surplus lines insurance from surplus lines insurers in accordance with this chapter shall be valid and enforceable to the same extent as insurance contracts procured from admitted insurers. (b) The insurance trade practices provisions of sections 4723 and 4724(1)-(7) and (9)-(18) of this title, […]
§ 5030. Liability of surplus lines insurer for losses and unearned premiums
§ 5030. Liability of surplus lines insurer for losses and unearned premiums If a surplus lines insurer has assumed a surplus lines coverage through the intervention of a licensed surplus lines broker of this State, and if the premium for that coverage has been received by that broker, then in all questions thereafter arising under […]
§ 5031. Licensing of surplus lines brokers
§ 5031. Licensing of surplus lines brokers After written application on a form supplied by the Commissioner, any licensed producer who is deemed by the Commissioner to be trustworthy and competent may be licensed as a surplus lines broker, pursuant to the provisions of chapter 131 of this title. (Added 1979, No. 50, § 2; […]
§ 5032. Surplus lines broker may accept business from other producers
§ 5032. Surplus lines broker may accept business from other producers (a) A licensed surplus lines broker may originate surplus lines business himself or herself, or may accept such business from any other originating producer duly licensed as to the kind or kinds of insurance involved and may compensate such producer therefor. (b) No originating […]
§ 5033. Records of surplus lines broker
§ 5033. Records of surplus lines broker (a) Where Vermont is the home state of the insured, each surplus lines broker shall keep in his or her office a full and true record of each surplus lines insurance contract covering a domestic risk placed by or through him or her with a surplus lines insurer, […]
§ 5034. Quarterly reports; summary of exported business
§ 5034. Quarterly reports; summary of exported business On or before the end of each month next following each calendar quarter, each surplus lines broker shall file with the Commissioner of Taxes, on forms prescribed by him or her, a verified report of all surplus lines insurance transacted during the preceding calendar quarter. (Added 1979, […]
§ 5035. Surplus lines tax
§ 5035. Surplus lines tax (a) Where Vermont is the home state of the insured, gross premiums charged, less any return premiums, for surplus lines coverages placed with surplus lines insurers are subject to a premium receipts tax of three percent, which shall be collected from the insured by the surplus lines broker at the […]
§ 5036. Direct placement of insurance
§ 5036. Direct placement of insurance (a) Every insured and every self-insurer in this State for whom this is their home state who procures or causes to be procured or continues or renews insurance from any non-admitted insurer, covering a subject located or to be performed within this State, other than insurance procured through a […]
§ 5037. Suspension, revocation, or refusal of surplus lines broker’s license
§ 5037. Suspension, revocation, or refusal of surplus lines broker’s license The Commissioner may suspend, revoke, or refuse to renew the license of a surplus lines broker after notice and hearing as provided under 3 V.S.A. chapter 25, upon any one or more of the following grounds: (1) failure to make accounts and records relating […]
§ 5038. Actions against insurer; service of process
§ 5038. Actions against insurer; service of process (a) A non-admitted insurer may be sued upon any cause of action arising in this State under any surplus lines insurance contract made by it or certificate, cover note, or other confirmation of such insurance issued or delivered by the surplus lines broker pursuant to the procedure […]
§ 5039. Penalties
§ 5039. Penalties In addition to any other penalty provided for in this chapter or otherwise provided by law, including any suspension, revocation, or refusal to renew a license, any person, firm, association, or corporation violating any provision of this chapter shall be liable for an administrative penalty not exceeding $1,000.00 for the first offense, […]