§5064. Compacting states, effective date, and amendment

Link to law: http://legislature.vermont.gov/statutes/section/08/138A/05064
Published: 2015

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Title

08

:
Banking and Insurance






Chapter

138A

:
SURPLUS LINES INSURANCE MULTI-STATE COMPLIANCE COMPACT











 

§

5064. Compacting states, effective date, and amendment

(a) Any state is

eligible to become a compacting state.

(b) The compact

shall become effective and binding upon legislative enactment of the compact

into law by two compacting states, provided the Commission shall become

effective for purposes of adopting rules, and creating the clearinghouse when

there are a total of 10 compacting states and contracting states or,

alternatively, when there are compacting states and contracting states

representing greater than 40 percent of the surplus lines insurance premium

volume based on records of the percentage of surplus lines insurance premium

set forth in section 5069 of this chapter. Thereafter, it shall become

effective and binding as to any other compacting state upon enactment of the

Compact into law by that state. Notwithstanding the foregoing, the

clearinghouse operations and the duty to report clearinghouse transaction data

shall begin on the first January 1 or July 1 following the first anniversary of

the Commission effective date. For states which join the Compact subsequent to

the effective date, a start date for reporting clearinghouse transaction data

shall be set by the Commission provided surplus lines licensees and all other

interested parties receive not less than 90 days' advance notice.

(c) Amendments

to the Compact may be proposed by the Commission for enactment by the

compacting states. No amendment shall become effective and binding upon the

Commission and the compacting states unless and until all compacting states

enact the amendment into law. (Added 2011, No. 49, § 1, eff. May 26, 2011.)
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