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The Vermont Statutes Online

 

Title 8 : Banking and Insurance

Chapter 142A : RISK RETENTION GROUP MANAGING GENERAL AGENTS, REINSURANCE INTERMEDIARIES, AND PRODUCER CONTROLLED INSURERS

(Cite as: 8 V.S.A. § 6072)
  • § 6072. Licensure

    (a) No person shall act in the capacity of managing general agent as defined in subdivision 6071(1)(A) of this title for a risk retention group unless such person is licensed under the provisions of this chapter. No person shall act in the capacity of managing general agent as defined in subdivision 6071(1)(B) of this title for a risk retention group unless within 90 days of the end of the risk retention group's fiscal year in which such person became a managing general agent, such person becomes licensed under the provisions of this chapter. No officer, director, or employee of a person licensed or exempt from licensure under this chapter shall be required to be licensed. The Commissioner may exempt any other person upon a finding that the activities to be performed by such person on behalf of a risk retention group are not of the nature or magnitude requiring the protection of this chapter. A person shall not be required to obtain more than one license hereunder in order to serve as managing general agent for more than one risk retention group.

    (b) No risk retention group shall employ the services of a reinsurance intermediary to solicit, negotiate, or place reinsurance on its behalf, unless such person is licensed as a reinsurance intermediary under the provisions of chapter 131 of this title or under the provisions of another state's law governing reinsurance intermediaries or is licensed as a managing general agent under this chapter and is acting as such for the risk retention group.

    (c) Application for a license under this section shall be made on a form prescribed by the Commissioner and accompanied by a $30.00 fee plus the initial 12 months' licensing fee of $150.00.

    (d) The Commissioner shall issue a license to any person who has complied with the requirements of this chapter, unless the Commissioner determines that the applicant, anyone named in the application, or any member, principal, officer, or director of the applicant, is not competent or trustworthy, or that any controlling person of such applicant is not competent or trustworthy to act as a managing general agent or that any of the foregoing persons have given cause for revocation or suspension of such license, or have failed to comply with any prerequisite for the issuance of such license.

    (e) If the applicant for a license is a nonresident that has not duly registered to do business in this State, such applicant, as a condition precedent to receiving or holding a license, shall designate the Secretary of State as agent for service of process in the manner, and with the same legal effect, provided for by section 3370 of this title for designation of service of process upon unauthorized insurers; and shall also furnish the Secretary of State with the name and address of a resident of this State upon whom notices or orders of the Commissioner or process affecting such nonresident licensee may be served. Such licensee shall promptly notify the Secretary of State in writing of every change in its designated agent for service of process.

    (f) A license issued hereunder shall continue in force not longer than 12 months, but shall expire as of 12:01 a.m. o'clock on the first day of April of the year next following date of issuance unless the licensee prior thereto has filed with the Commissioner, on forms prescribed and furnished by the Commissioner, a request for renewal of such license for an ensuing 12-month period. Such request must be accompanied by payment of a renewal fee equal to the initial licensing fee for such license. (Added 1993, No. 235 (Adj. Sess.), § 9j, eff. Oct. 1, 1994.)