§5024. Conditions for placement of insurance

Link to law: http://legislature.vermont.gov/statutes/section/08/138/05024
Published: 2015

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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.)
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