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.
(Cite as: 8 V.S.A. § 4853)
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§ 4853. Nonassessable policies
(a) If a reciprocal insurer has a surplus of assets over all liabilities at least equal
to the minimum capital stock and surplus required to be maintained by a domestic stock
insurer authorized to transact like kinds of insurance, upon application of the attorney
and as approved by the subscribers’ advisory committee, the Commissioner shall issue
his or her certificate authorizing the insurer to extinguish the contingent liability
of subscribers under its policies then in force in this State, and to omit provisions
imposing contingent liability in all policies delivered or issued for delivery in
this State for so long as all of the surplus remains unimpaired.
(b) Upon impairment of such surplus, the Commissioner shall immediately revoke the certificate.
The revocation shall not render subject to contingent liability any policy then in
force and for the remainder of the period for which the premium has previously been
paid; but after the revocation no policy shall be issued or renewed without providing
for contingent assessment liability of the subscriber.
(c) The Commissioner shall not authorize a domestic reciprocal insurer so to extinguish
the contingent liability of any of its subscribers or in any of its policies to be
issued, unless it is qualified to and does extinguish the liability of all its subscribers
and in all policies for all kinds of insurance transacted by it. Nevertheless, if
required by the laws of another state in which the insurer is transacting insurance
as an authorized insurer, the insurer may issue policies providing for the contingent
liability of such of its subscribers as may acquire such policies in that state, and
need not extinguish the contingent liability applicable to policies previously in
force in that state. (Added 1971, No. 31, § 1, eff. March 31, 1971; amended 2021, No. 105 (Adj. Sess.), § 234, eff. July 1, 2022.)