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
005
:
AFFILIATED REINSURANCE COMPANIES
(Cite as: 8 V.S.A. § 6049c)
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§ 6049c. Licensing; authority
(a) An affiliated reinsurance company shall only reinsure the risks of a ceding insurer.
An affiliated reinsurance company may cede the risks assumed under a reinsurance contract
to another reinsurer, subject to the prior approval of the Commissioner.
(b) In conjunction with the issuance of a license to an affiliated reinsurance company,
the Commissioner may issue an order that includes any provisions, terms, and conditions
regarding the organization, licensing, and operation of the affiliated reinsurance
company that are deemed appropriate by the Commissioner and that are not inconsistent
with the provisions of this chapter.
(c) To qualify for a license, an affiliated reinsurance company shall be subject, in addition
to the requirements of subsection 6002(c) of this chapter, to the following:
(1) The information submitted to the Commissioner pursuant to subdivision 6002(c)(1)(B)
of this chapter shall include:
(A) the source and form of the affiliated reinsurance company’s capital and surplus;
(B) the investment policy of the affiliated reinsurance company, which shall provide for
a diversified investment portfolio both as to type and issue and shall include a requirement
for liquidity and for the reasonable preservation, administration, and management
of such assets with respect to the risks associated with any reinsurance transactions.
(2) The application shall include copies of all agreements and documentation, including
reinsurance agreements, described in subdivision (1) of this subsection (c) unless
otherwise approved by the Commissioner and any other statements or documents required
by the Commissioner to evaluate the affiliated reinsurance company’s application for
licensure.
(d) Subdivision 6002(c)(3) of this chapter shall apply to all information submitted pursuant
to subsection (c) of this section and to any order issued to the affiliated reinsurance
company pursuant to subsection (b) of this section. (Added 2017, No. 134 (Adj. Sess.), § 10.)