§ 3612. Definitions
As used in this subchapter:
(1) “Account” means any one of the three accounts created under section 3613 of this title.
(2) “Association” means the Vermont Property and Casualty Insurance Guaranty Association
created under section 3613 of this title.
(3) “Commissioner” means the Commissioner of Financial Regulation.
(4) “Covered claim” means an unpaid claim, including a claim for unearned premiums:
(A) that is asserted against an insurer that becomes an insolvent insurer after the effective
date of this chapter or against the insured of such an insurer;
(B) that arises out of and is in an amount not in excess of the applicable limits of an
insurance policy to that this subchapter applies;
(C)(i) where the claimant or insured is a resident of this State at the time of the insured
event; or
(ii) where the claim arises from property permanently located in this State;
(D) that does not include a claim for services rendered to or for the insolvent insurer;
and
(E) that does not include any amount due any reinsurer, insurer, insurance pool, or underwriting
association, provided that claims that would be covered claims but for this subdivision
may be filed directly with the receiver of the insolvent insurer and shall not be
asserted against an insured of the insolvent insurer.
(5) “Insolvent insurer” means an insurer, including a cooperative fire insurance corporation
existing under the authority of chapter 105, subchapter 2 of this title:
(A) licensed to transact insurance in this State either at the time the policy was issued
or when the insured event occurred; and
(B) against whom a final order of liquidation has been entered with a finding of insolvency
by a court of competent jurisdiction in the insurer’s state of domicile.
(6) “Member insurer” means any person who:
(A) writes any kind of insurance to which this subchapter applies, including the exchange
of reciprocal or interinsurance contracts; and
(B) is licensed to transact business in this State.
(7) “Net direct written premiums” means direct gross premiums written in this State on
insurance policies to which this subchapter applies, less return premiums thereon
and dividends paid or credited to policyholders on such direct business. “Net direct
written premiums” does not include premiums on contracts between insurers or reinsurers.
(8) “Person” means any individual, corporation, partnership, association, or voluntary
organization. (Added 1969, No. 279 (Adj. Sess.), § 4; amended 1979, No. 18, § 7; 1989, No. 225 (Adj. Sess.), § 25(b); 1995, No. 180 (Adj. Sess.), § 38(a); 2001, No. 95 (Adj. Sess.), § 1, eff. May 1, 2002.)