Print
The Vermont Statutes Online
Title
08
:
Banking and Insurance
Chapter
138
:
NON-ADMITTED INSURERS AND SURPLUS LINES 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 non-admitted 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 amount of insurance exported
shall be only the excess over the amount procurable from admitted insurers
actually transacting and insuring that kind and class of insurance.
(b)
Notwithstanding any other provision of this section, the Commissioner may order
eligible for export any class or classes of insurance coverage or risk for
which he or she finds there to be an inadequate competitive market among
admitted insurers either as to acceptance of the risk, contract terms, or
premium or premium rate.
(c) The due
diligence search for reasonably procurable insurance coverage required under
subsection (a) of this section is not required for an exempt commercial
purchaser, provided:
(1) the surplus
lines broker procuring or placing the surplus lines insurance has disclosed to
the exempt commercial purchaser that such insurance may be available from an
admitted insurer and may provide greater protection with more regulatory
oversight; and
(2) the exempt
commercial purchaser has subsequently requested in writing the surplus lines
broker to procure or place such insurance from a non-admitted insurer. (Added
1979, No. 50, § 2; amended 1979, No. 197 (Adj. Sess.), § 3; amended 2001, No.
97 (Adj. Sess.), § 19; 2011, No. 49, § 3, eff. May 26, 2011.)