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
002
:
FOREIGN AND ALIEN COMPANIES LICENSING AND REGULATION
(Cite as: 8 V.S.A. § 3366)
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§ 3366. Assets of companies
(a)(1) A foreign or alien insurer authorized to do business in this State shall possess and
thereafter maintain unimpaired paid-in capital or basic surplus of not less than $2,000,000.00
and, when first so authorized, shall possess and maintain free surplus of not less
than $3,000,000.00.
(2) The capital and 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 such cash or marketable securities shall
inure to the benefit of the insurer until such time as 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.
(3) The Commissioner may prescribe additional capital or surplus for all insurers authorized
to transact the business of insurance based upon the type, volume, and nature of insurance
business transacted. The Commissioner may reduce or waive the capital and surplus
amounts required by this section pursuant to a plan of dissolution for the company
approved by the Commissioner.
(b) The express purpose of subsection (a) of this section and the Commissioner’s power
to require the deposit of cash or marketable securities set forth therein is to protect
the interests of Vermont policyholders in the event of the insolvency of the insurer.
Except to the extent it would contravene applicable provisions of 9A V.S.A. Article
9, the State of Vermont shall be deemed to control the funds on deposit and to have
a lien on the funds for the benefit of the Vermont policyholders affected by the insolvency.
The lien so created shall be superior to any lien filed by a general creditor of the
insurer. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 1, subch. 2, § 6); amended 2003, No. 105 (Adj. Sess.), § 4; 2005, No. 36, § 10, eff. June 1, 2005; 2019, No. 57, § 3.)