The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
Subchapter
001
:
FORMATION
(Cite as: 8 V.S.A. § 3309)
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§ 3309. Mutual insurers to commence business; when
(a) A corporation that, according to its charter, is not to have a capital stock shall
not receive authorization to commence business until:
(1) it complies with preliminary requirements for the procurement of an adequate amount
of subscriptions for insurance and possesses and thereafter maintains unimpaired basic
surplus of not less than $2,000,000.00 and, when first authorized, shall possess free
surplus of not less than $3,000,000.00; and
(2) the Commissioner has considered the criteria in section 3361 of this chapter.
(b) The Commissioner in his or her discretion may establish lesser surplus amount requirements
in the case of affiliated corporations jointly conducting the business of insurance
under a pooling agreement. Such surplus shall be in the form of cash or marketable
securities, a portion of which may be held on deposit with the State Treasurer, such
securities as designated by the insurer and approved by the Commissioner, in an amount
and subject to conditions determined by the Commissioner. The conditions shall include
a requirement that any interest or other earnings attributable to cash or marketable
securities shall inure to the benefit of the insurer until the Commissioner determines
that the deposit must be used for the benefit of the policyholders of the insurer
or some other authorized public purpose relating to the regulation of the insurer.
The Commissioner may prescribe additional surplus based upon the type, volume, and
nature of insurance business transacted. (Amended 1967, No. 344 (Adj. Sess.), § 1 (ch. 1, subch. 1, § 9); 1991, No. 101, § 2; 2003, No. 105 (Adj. Sess.), § 3; 2015, No. 15, § 2, eff. May 1, 2015.)