§5026. Solvent insurers required

Link to law: http://legislature.vermont.gov/statutes/section/08/138/05026
Published: 2015

Print

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.)
Read Entire Law on legislature.vermont.gov