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. § 6049f)
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§ 6049f. Permitted reinsurance
(a) An affiliated reinsurance company shall only reinsure the risks of a ceding insurer,
pursuant to a reinsurance contract. An affiliated reinsurance company shall not issue
a contract of insurance or a contract for assumption of risk or indemnification of
loss other than such reinsurance contract.
(b) The reinsurance contract shall contain all provisions reasonably required or approved
by the Commissioner, which requirements shall take into account the laws applicable
to the ceding insurer regarding the ceding insurer’s taking credit for the reinsurance
provided under such reinsurance contract.
(c) An affiliated reinsurance company may cede risks assumed through a reinsurance contract
to one or more reinsurers through the purchase of reinsurance, subject to the prior
approval of the Commissioner. Except as otherwise provided in this section, the provisions
of chapter 101, subchapter 10 of this title, reinsurance of risks, shall apply in
full to an affiliated reinsurance company.
(d) Unless otherwise approved in advance by the Commissioner, a reinsurance contract shall
not contain any provision for payment by the affiliated reinsurance company in discharge
of its obligations under the reinsurance contract to any person other than the ceding
insurer or any receiver of the ceding insurer.
(e) An affiliated reinsurance company shall notify the Commissioner immediately of any
action by a ceding insurer or any other person to foreclose on or otherwise take possession
of collateral provided by the affiliated reinsurance company to secure any obligation
of the affiliated reinsurance company. (Added 2017, No. 134 (Adj. Sess.), § 10.)