§6001. Definitions

Link to law: http://legislature.vermont.gov/statutes/section/08/141/06001
Published: 2015

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The Vermont Statutes Online



Title

08

:
Banking and Insurance






Chapter

141

:
CAPTIVE INSURANCE COMPANIES






Subchapter

001
:
GENERAL PROVISIONS










 

§

6001. Definitions

As used in this

chapter, unless the context requires otherwise:

(1)

"Affiliated company" means any company in the same corporate system

as a parent, an industrial insured, or a member organization by virtue of

common ownership, control, operation, or management.

(2)

"Association" means any legal association of individuals,

corporations, limited liability companies, partnerships, associations, or other

entities, the member organizations of which or which does itself, whether or not

in conjunction with some or all of the member organizations:

(A) own,

control, or hold with power to vote all of the outstanding voting securities of

an association captive insurance company incorporated as a stock insurer; or

(B) have

complete voting control over an association captive insurance company

incorporated as a mutual insurer; or

(C) constitute

all of the subscribers of an association captive insurance company formed as a

reciprocal insurer; or

(D) have

complete voting control over an association captive insurance company formed as

a limited liability company.

(3)

"Association captive insurance company" means any company that

insures risks of the member organizations of the association, and that also may

insure the risks of affiliated companies of the member organizations and the

risks of the association itself.

(4)

"Captive insurance company" means any pure captive insurance company,

association captive insurance company, sponsored captive insurance company,

industrial insured captive insurance company, risk retention group, or special

purpose financial insurance company formed or licensed under the provisions of

this chapter. For purposes of this chapter, a branch captive insurance company

shall be a pure captive insurance company with respect to operations in this

State, unless otherwise permitted by the Commissioner.

(5)

"Commissioner" means the Commissioner of Financial Regulation.

(6)

"Controlled unaffiliated business" means any person:

(A) that is not

in the corporate system of a parent and its affiliated companies in the case of

a pure captive insurance company, or that is not in the corporate system of an

industrial insured and its affiliated companies in the case of an industrial

insured captive insurance company;

(B) that has an

existing contractual relationship with a parent or one of its affiliated

companies in the case of a pure captive insurance company, or with an

industrial insured or one of its affiliated companies in the case of an

industrial insured captive insurance company; and

(C) whose risks

are managed by a pure captive insurance company or an industrial insured

captive insurance company, as applicable, in accordance with section 6019 of

this title.

(7) "Excess

workers' compensation insurance" means, in the case of an employer that

has insured or self-insured its workers' compensation risks in accordance with

applicable State or federal law, insurance in excess of a specified

per-incident or aggregate limit established by the Commissioner.

(8)

"Industrial insured" means an insured:

(A) who procures

the insurance of any risk or risks by use of the services of a full-time

employee acting as an insurance manager or buyer;

(B) whose

aggregate annual premiums for insurance on all risks total at least $25,000.00;

and

(C) who has at

least 25 full-time employees.

(9)

"Industrial insured captive insurance company" means any company that

insures risks of the industrial insureds that comprise the industrial insured

group, and that may insure the risks of the affiliated companies of the industrial

insureds and the risks of the controlled unaffiliated business of an industrial

insured or its affiliated companies.

(10)

"Industrial insured group" means any group of industrial insureds

that collectively:

(A) own,

control, or hold with power to vote all of the outstanding voting securities of

an industrial insured captive insurance company incorporated as a stock

insurer;

(B) have

complete voting control over an industrial insured captive insurance company

incorporated as a mutual insurer; or

(C) constitute

all of the subscribers of an industrial insured captive insurance company

formed as a reciprocal insurer; or

(D) have

complete voting control over an industrial insured captive insurance company

formed as a limited liability company.

(11)

"Member organization" means any individual, corporation, limited

liability company, partnership, association, or other entity that belongs to an

association.

(12)

"Mutual corporation" means a corporation organized without

stockholders and includes a nonprofit corporation with members.

(13)

"Parent" means a corporation, limited liability company, partnership,

other entity, or individual, that directly or indirectly owns, controls, or

holds with power to vote more than 50 per centum of the outstanding voting:

(A) securities

of a pure captive insurance company organized as a stock corporation; or

(B) membership

interests of a pure captive insurance company organized as a nonprofit

corporation; or

(C) membership

interests of a pure captive insurance company organized as a limited liability

company.

(14) "Pure

captive insurance company" means any company that insures risks of its

parent and affiliated companies or controlled unaffiliated business.

(15) "Risk

retention group" means a captive insurance company organized under the

laws of this State pursuant to the Liability Risk Retention Act of 1986, 15

U.S.C. § 3901 et seq., as amended, as a stock or mutual corporation, a

reciprocal or other limited liability entity. (Added 1981, No. 28; amended

1981, No. 145 (Adj. Sess.); 1985, No. 170 (Adj. Sess.), § 3, eff. May 7, 1986;

1987, No. 168 (Adj. Sess.), § 1, eff. May 3, 1988; 1989, No. 225 (Adj. Sess.), §

25; 1991, No. 101, § 18; 1993, No. 40, § 1, eff. June 3, 1993; 1995, No. 180

(Adj. Sess.), § 38; 1997, No. 49, §§ 7, 8, eff. June 26, 1997; 1999, No. 38, §

4, eff. May 20, 1999; 2001, No. 71, § 11, eff. June 16, 2001; 2003, No. 55, §

7; 2005, No. 122 (Adj. Sess.), § 3; 2007, No. 49, §§ 8, 14; 2011, No. 78 (Adj.

Sess.), § 2, eff. April 2, 2012.)
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