§5027. Evidence of the insurance; changes; penalty

Link to law: http://legislature.vermont.gov/statutes/section/08/138/05027
Published: 2015

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Title

08

:
Banking and Insurance






Chapter

138

:
NON-ADMITTED INSURERS AND SURPLUS LINES INSURANCE











 

§

5027. Evidence of the insurance; changes; penalty

(a) Where

Vermont is the home state of the insured, the surplus lines broker, upon

placing a domestic risk with a surplus lines insurer, shall promptly deliver to

the insured the policy issued by the surplus lines insurer, or if such policy

is not then available, a certificate, cover note, or other confirmation of

insurance, showing the description and location of the subject of the

insurance, coverage, conditions and term of the insurance, the premium and rate

charged and taxes collected from the insured, and the name and address of the

insured and surplus lines insurer. If the risk is assumed by more than one

insurer, the document or documents shall state the name and address and

proportion of the entire risk assumed by each insurer.

(b) No surplus

lines broker shall issue or deliver such policy or such confirmation of

insurance or represent that insurance will be or has been written by any

non-admitted surplus lines insurer unless he or she has written authority from

the surplus lines insurer to assume the risk or has received confirmation from

the surplus lines insurer in the regular course of business that such insurance

has been granted.

(c) If, after

delivery of any such document, there is any change in the identity of the

insurers, the proportion of the risk assumed by any insurer, or any other

material change in coverage evidenced by an appropriate document, the surplus

lines broker shall promptly deliver to the insured an appropriate substitute for,

or endorsement of the original document, accurately showing the current status

of the coverage and the insurers responsible thereunder. The document as

modified and issued must conform to all the requirements of this chapter, and

any such change resulting in a violation of this chapter is prohibited.

(d) As soon as

reasonably possible, and in no event later than 60 days after placement of any

such insurance, the surplus lines broker shall procure from the insurer a full

and properly executed policy and deliver it to the insured to replace any

confirmation previously issued. The word "policy," as used in this

section, shall include a certificate of insurance or cover note bound under a

fully executed and effective contract from a bona fide intermediary or general

agent for a surplus lines insurer, provided that it contains or has attached to

it all insuring agreements, clauses, conditions, endorsements, exclusions, or

any other material provisions that would regularly be included in such a

policy.

(e) Any surplus

lines broker who fails to comply with the requirements of this section shall be

subject to the penalties provided in this chapter. (Added 1979, No. 50, § 2;

amended 1979, No. 197 (Adj. Sess.), § 5; 2001, No. 97 (Adj. Sess.), § 19; 2011,

No. 49, § 6, eff. May 26, 2011.)
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