§3381. Legislative purpose and policy

Link to law: http://legislature.vermont.gov/statutes/section/08/101/03381
Published: 2015

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The Vermont Statutes Online



Title

08

:
Banking and Insurance






Chapter

101

:
INSURANCE COMPANIES GENERALLY






Subchapter

002
:
FOREIGN AND ALIEN COMPANIES LICENSING AND REGULATION










 

§

3381. Legislative purpose and policy

The purpose of

this article is to subject certain insurers to the jurisdiction of courts of

this state by or on behalf of insureds or beneficiaries under insurance

contracts. The legislature declares that it is a subject of concern that many

residents of this state hold policies of insurance issued or delivered in this

state by insurers while not authorized to do business in this state, thus

presenting to such residents the often insuperable obstacle of resorting to

distant forums for the purpose of asserting legal rights under such policies.

In furtherance of such state interest, the legislature herein provides a method

of substituted service of process upon such insurers and declares that in so

doing it exercises its power to protect its residents and to define, for the

purpose of this article, what constitutes doing business in this state, and

also exercises powers and privileges available to the state by virtue of public

law 15, 79th Congress of the United States, Chapter 20, 1st Session, S. 340,

which declares that the business of insurance and every person engaged therein

shall be subject to the laws of the several states. (1967, No. 344 (Adj.

Sess.), § 1 (ch. 1, subch. 3, § 1).)
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