§6011. Reinsurance

Link to law: http://legislature.vermont.gov/statutes/section/08/141/06011
Published: 2015

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Title

08

:
Banking and Insurance






Chapter

141

:
CAPTIVE INSURANCE COMPANIES






Subchapter

001
:
GENERAL PROVISIONS










 

§

6011. Reinsurance

(a) Any captive

insurance company may provide reinsurance, comprised in subsection 3301(a) of

this title, on risks ceded by any other insurer, and may provide reinsurance of

annuity contracts as defined in section 3717 of this title that are granted by

any other insurer.

(b) Any captive

insurance company may take credit for the reinsurance of risks or portions of

risks ceded to reinsurers complying with the provisions of subsections 3634a(a)

through (f) of this title. Prior approval of the Commissioner shall be required

for ceding or taking credit for the reinsurance of risks or portions of risks

ceded to reinsurers not complying with subsections 3634a(a) through (f) of this

title, except for business written by an alien captive insurance company

outside the United States.

(c) In addition

to reinsurers authorized under the provisions of section 3634a of this title, a

captive insurance company may take credit for the reinsurance of risks or

portions of risks ceded to a pool, exchange, or association acting as a

reinsurer which has been authorized by the Commissioner. The Commissioner may

require any other documents, financial information, or other evidence that such

a pool, exchange, or association will be able to provide adequate security for

its financial obligations. The Commissioner may deny authorization or impose

any limitations on the activities of a reinsurance pool, exchange, or

association that, in the Commissioner's judgment, are necessary and proper to

provide adequate security for the ceding captive insurance company and for the

protection and consequent benefit of the public at large.

(d) For all

purposes of this chapter, insurance by a captive insurance company of any

workers' compensation qualified self-insured plan of its parent and affiliates

shall be deemed to be reinsurance. (Added 1981, No. 28; 1985, No. 170 (Adj.

Sess.), § 1, eff. May 7, 1986; amended 1987, No. 168 (Adj. Sess.), § 3, eff.

May 3, 1988; 1991, No. 249 (Adj. Sess.), § 24; 93, No. 40, §§ 7, 8, eff. June

3, 1993; 1999, No. 38, § 13, eff. May 20, 1999; 2003, No. 55, § 7; 2005, No.

122 (Adj. Sess.), § 4.)
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