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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).)