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
004
:
SPECIAL PURPOSE FINANCIAL INSURANCE COMPANIES
(Cite as: 8 V.S.A. § 6048h)
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§ 6048h. Securities
(a) A special purpose financial insurance company may:
(1) subject to the prior approval of the Commissioner, account for the proceeds of a surplus
note issued by the special purpose financial insurance company as surplus; and
(2) submit for prior approval of the Commissioner periodic written requests for authorization
to make payments of interest on and repayments of principal of surplus notes and other
debt obligations issued by the special purpose financial insurance company, provided
that the Commissioner shall not approve such payment if the Commissioner determines
that such payment would jeopardize the ability of the special purpose financial insurance
company or any other person to fulfill his or her respective obligations pursuant
to the special purpose financial insurance company securitization agreements, the
reinsurance contract, or any related transaction. In lieu of approval of periodic
written requests for authorization to make payments of interest on and repayments
of principal of surplus notes and other debt obligations issued by the special purpose
financial insurance company, the Commissioner may approve a formula or plan, which
shall be included in the special purpose financial insurance company’s plan of operation
as amended from time to time, for payment of interest, principal, or both with respect
to such surplus notes and debt obligations.
(b) In addition to the provisions of section 6005 of this chapter, no dividend or distribution
may be declared or paid by a special purpose financial insurance company if such dividend
or distribution would jeopardize the ability of the special purpose financial insurance
company or any other person to fulfill the company’s or other person’s respective
obligations pursuant to the special purpose financial insurance company securitization
agreements, the reinsurance contract, or any related transaction.
(c) A special purpose financial insurance company security shall not be subject to regulation
as an insurance or reinsurance contract. An investor in such a security or a holder
of such a security shall not be considered to be transacting the business of insurance
in this State solely by reason of having an interest in the security. The underwriter’s
placement or selling agents and their partners, commissioners, officers, members,
managers, employees, agents, representatives, and advisors involved in an insurance
securitization by a special purpose financial insurance company shall not be considered
to be insurance producers or brokers or to be conducting business as an insurance
or reinsurance company or as an insurance agency, brokerage, intermediary, advisory,
or consulting business solely by virtue of their underwriting activities in connection
with such securitization. (Added 2007, No. 49, § 17; amended 2013, No. 29, § 59, eff. May 13, 2013.)