§4816. Applicability of subchapter to controlling producers

Link to law: http://legislature.vermont.gov/statutes/section/08/131/04816
Published: 2015

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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.)
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