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The Vermont Statutes Online
Title
08
:
Banking and Insurance
Chapter
138
:
NON-ADMITTED INSURERS AND SURPLUS LINES INSURANCE
§
5026. Solvent insurers required
(a) Where
Vermont is the home state of the insured, surplus lines brokers shall not
knowingly place or continue surplus lines insurance with non-admitted insurers
who are insolvent or unsound financially, and in no event shall any surplus
lines broker place any insurance with a non-admitted insurer unless such
insurer:
(1) has and
maintains capital and surplus or its equivalent under the laws of its
domiciliary jurisdiction which equals the greater of:
(A) the minimum
capital and surplus requirements under the law of this State; or
(B)
$15,000,000.00; and
(2) if an alien
insurer, is listed on the quarterly listing of alien insurers maintained by the
NAIC international insurers department.
(b)
Notwithstanding the capital and surplus requirements of this section, a
non-admitted insurer may receive approval upon an affirmative finding of
acceptability by the Commissioner. The finding shall be based upon such factors
as quality of management, capital, and surplus of any parent company, company
underwriting profit and investment-income trends, market availability, and
company record and reputation within the industry. In no event, however, shall
the Commissioner make an affirmative finding of acceptability when the surplus
lines insurer's capital and surplus is less than $4,500,000.00.
(c) The
Commissioner may from time to time publish a list of all non-admitted insurers
deemed by him or her to be currently eligible surplus lines insurers under the
provisions of this section, and shall mail a copy of such list to each surplus
lines broker. This subsection shall not be deemed to cast upon the Commissioner
the duty of determining the actual financial condition or claims practices of
any non-admitted insurer; and the status of eligibility, if granted by the
Commissioner, shall indicate only that the insurer appears to be sound
financially and to have satisfactory claims practices, and that the
Commissioner has no credible evidence to the contrary. While any such list is
in effect, the surplus lines broker shall restrict to the insurers so listed
all surplus lines insurance business placed by him or her. However, upon the
request of a surplus lines broker or an insured, the Commissioner may deem a
non-admitted insurer to be an eligible surplus lines insurer for purposes of
this subsection prior to publication of the name of such surplus lines insurer
on the list. (Added 1979, No. 50, § 2; amended 1979, No. 197 (Adj. Sess.), §
4;1985, No. 236 (Adj. Sess.), § 4, eff. June 3, 1986; 1989, No. 249 (Adj.
Sess.), § 1; 1993, No. 235 (Adj. Sess.), § 5, eff. June 21, 1994; 2001, No. 97
(Adj. Sess.), § 19; 2007, No. 49, § 7; 2011, No. 49, § 5, eff. May 26, 2011.)