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
:
COOPERATIVE FIRE INSURANCE CORPORATIONS
(Cite as: 8 V.S.A. § 3927)
-
§ 3927. Assessment cooperative insurance corporations
The following provisions shall affect such corporations doing business on the assessment
plan:
(1) Such corporation may issue policies of insurance as enumerated in section 3916 of this title.
(2) Such corporation may classify risks covered under these types of insurance at the
time of the issuance of the policy, or at subsequent times and issue policies under
different rates, and it may collect regular assessments on such risks either on an
annual basis or for whatever length of time the policy may be issued. The amounts
of such regular assessments shall be sufficient to pay for the period assessed, each
member’s pro rata share, based on the risk classification and amount of insurance,
of the estimated amount necessary to cover losses, expenses, repayment of debt, and
contribution to surplus as may be permitted by the bylaws.
(3) Such corporation may borrow, on the credit of the corporation, such funds as are required
to pay for extraordinary losses or expenses subject to the approval of the board of
directors or as may be provided in the bylaws of such corporation, subject to the
maximum limit stated in subdivision (4) of this section. If deemed for the best interest
of the corporation, it may estimate the amount necessary to pay all losses and expenses
and contributions to surplus for the current year and to supply any deficiency in
the preceding year, subject to the maximum limit stated in subdivision (4) of this
section, and assess and collect the same from the members. Each assessment shall
be made upon all policyholders in proportion to each policyholder’s regular annual
assessment. The expense of collecting assessments may be regulated by the bylaws.
(4) Such corporation may levy a special assessment to pay for such member’s pro rata share
of unexpected losses, expenses and contributions to surplus, based upon the risk classification
and amount of insurance at the time of the assessment, as may be permitted by the
bylaws, however, in no case shall the sum total of all special assessments during
any one year exceed 50 percent of the equivalent of one annual regular assessment.
The expense of collecting assessments may be regulated by the bylaws. (Amended 1981, No. 6, § 9.)