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Searching 2021-2022 Session

The Vermont Statutes Online

 

Title 8 : Banking and Insurance

Chapter 101 : INSURANCE COMPANIES GENERALLY

Subchapter 002 : Foreign and Alien Companies Licensing and Regulation

(Cite as: 8 V.S.A. § 3368a)
  • § 3368a. Unauthorized and misleading transactions

    (a) No person shall transact insurance business in this State unless the Commissioner has issued a license or certificate of authority to such person as required by section 3361 or 3368 of this title, or by chapters 123, 125, and 139 of this title. The provisions of this section shall not apply to an insurer licensed in this State or in any foreign or alien jurisdiction who is subject to section 3368 of this title.

    (b) No person shall act as an officer, director, or controlling person for a person who is engaged in a violation of subsection (a) of this section. As used in this subsection, "controlling" is defined by subdivision 3681(3) of this title.

    (c) No person shall directly or indirectly represent or aid a person in violating subsection (a) of this section.

    (d)(1) No person shall use in its advertisements or other marketing materials or communications the term "insurance" or any other term in a manner which could reasonably lead a person into believing that the product marketed, offered, or issued is insurance, unless such person is authorized under this title to transact the business of insurance.

    (2) No person shall use in its advertisements or other marketing materials or communications the terms "health plan," "coverage," "co-pay," "co-payments," "deductible," "preexisting conditions," "guaranteed issue," "premium," "enrollment," "preferred provider organization," or any other term in a manner that could reasonably mislead an individual into believing that the product marketed, offered, or issued is health insurance, unless such person is authorized under this title to transact the business of health insurance.

    (e) In addition to any other remedies or penalties provided by law:

    (1) For each violation of the provisions of subsection (a), (b), or (c) of this section a person shall be imprisoned not more than five years or fined not more than $10,000.00, or both.

    (2) For each violation of the provisions of subsection (d) of this section a person shall be imprisoned not more than two years or fined not more than $5,000.00, or both. (Added 2007, No. 178 (Adj. Sess.), § 6.)