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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.)