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The Vermont Statutes Online
Title
08
:
Banking and Insurance
Chapter
131
:
LICENSING REQUIREMENTS
Subchapter
002
:
REGULATION OF MANAGING GENERAL AGENTS, REINSURANCE INTERMEDIARIES, AND PRODUCER CONTROLLED INSURERS
§
4816. Applicability of subchapter to controlling producers
(a) The
provisions of this subchapter shall apply to a controlling producer if, in any
calendar year, the aggregate amount of gross written premium on business placed
with a controlled insurer is greater than or equal to five percent of the
admitted assets of the controlled insurer, as reported in the controlled
insurer's quarterly statement filed as of September 30 of the prior year.
(b) The
provisions of this subchapter shall not apply if the controlling producer:
(1) places
insurance only with the controlled insurer, or only with the controlled insurer
and a member or members of the controlled insurer's holding company system, or
the controlled insurer's parent, affiliate, or subsidiary and receives no
compensation based upon the amount of premiums written in connection with such
insurance;
(2) accepts
insurance placements only from nonaffiliated subproducers, and not directly
from insureds; and
(3) the
controlled insurer, except for insurance business written through a residual
market facility such as The Vermont Automobile Insurance Plan, accepts
insurance business only from a controlling producer, a producer controlled by
the controlled insurer, or a producer that is a subsidiary of the controlled
insurer. (Added 1991, No. 249 (Adj. Sess.), § 18, eff. Jan. 1, 1993.)