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The Vermont Statutes Online



Title

08

:
Banking and Insurance






Chapter

138A

:
SURPLUS LINES INSURANCE MULTI-STATE COMPLIANCE COMPACT











 

§

5063. Finance

(a) The

Commission shall pay or provide for the payment of the reasonable expenses of

its establishment and organization. To fund the cost of its initial operations

the Commission may accept contributions, grants, and other forms of funding

from the state stamping offices, compacting states, and other sources.

(b) The

Commission shall collect a fee payable by the insured directly or through a

surplus lines licensee on each transaction processed through the Compact

clearinghouse, to cover the cost of the operations and activities of the

Commission and its staff in a total amount sufficient to cover the Commission's

annual budget.

(c) The

Commission's budget for a fiscal year shall not be approved until it has been

subject to notice and comment as set forth in section 5059 of this chapter.

(d) The

Commission shall be regarded as performing essential governmental functions in

exercising such powers and functions and in carrying out the provisions of this

Compact and of any law relating thereto, and shall not be required to pay any

taxes or assessments of any character, levied by any state or political

subdivision thereof, upon any of the property used by it for such purposes, or

any income or revenue therefrom, including any profit from a sale or exchange.

(e) The

Commission shall keep complete and accurate accounts of all its internal

receipts, including grants and donations, and disbursements for all funds under

its control. The internal financial accounts of the Commission shall be subject

to the accounting procedures established under its bylaws. The financial

accounts and reports including the system of internal controls and procedures

of the Commission shall be audited annually by an independent certified public

accountant. Upon the determination of the Commission, but not less frequently

than every three years, the review of the independent auditor shall include a

management and performance audit of the Commission. The Commission shall make

an annual report to the Governor and Legislature of the compacting states,

which shall include a report of the independent audit. The Commission's

internal accounts shall not be confidential and such materials may be shared

with the Commissioner, the controller, or the stamping office of any compacting

state upon request provided, however, that any work papers related to any

internal or independent audit and any information regarding the privacy of

individuals, and licensees' and insurers' proprietary information, including

trade secrets, shall remain confidential.

(f) No

compacting state shall have any claim to or ownership of any property held by

or vested in the Commission or to any Commission funds held pursuant to the

provisions of this Compact.

(g) The

Commission shall not make any political contributions to candidates for elected

office, elected officials, political parties, nor political action committees.

The Commission shall not engage in lobbying except with respect to changes to

this Compact. (Added 2011, No. 49, § 1, eff. May 26, 2011.)