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Searching 2018 Special Session

The Vermont Statutes Online

Title 8 : Banking and Insurance

Chapter 145 : SUPERVISION, REHABILITATION, AND LIQUIDATION OF INSURERS

Subchapter 003 : FORMAL PROCEEDINGS

(Cite as: 8 V.S.A. § 7072)
  • § 7072. Recovery of premiums owed

    (a)(1) An agent, broker, premium finance company, or any other person, other than the insured, responsible for the payment of a premium shall be obligated to pay any unpaid premium for the full policy term due the insurer at the time of the declaration of insolvency, or the inception of the receivership, whichever is sooner, whether earned or unearned, as shown on the records of the insurer. The liquidator shall also have the right to recover from such person any part of an unearned premium that represents commission of such person. Credits or setoffs or both shall not be allowed to an agent, broker, or premium finance company for any amounts advanced to the insurer by the agent, broker, or premium finance company on behalf of, but in the absence of a payment by, the insured.

    (2) An insured shall be obligated to pay any unpaid earned premium due the insurer at the time of the declaration of insolvency, or the inception of the receivership, whichever is sooner, as shown on the records of the insurer.

    (b) Upon satisfactory evidence of a violation of this section, the Commissioner may pursue either one or both of the following courses of action:

    (1) Suspend or revoke or refuse to renew the licenses of such offending party or parties.

    (2) Impose a penalty of not more than $1,000.00 for each and every act in violation of this section by said party or parties.

    (c) Before the Commissioner shall take any action as set forth in subsection (b) of this section, he or she shall give written notice to the person, company, association, or exchange accused of violating the law, stating specifically the nature of the alleged violation; and fixing a time and place, at least ten days thereafter, when a hearing on the matter shall be held. After hearing, or upon failure of the accused to appear at the hearings, the Commissioner, if he or she shall find a violation, shall impose one or both of the penalties provided by subsection (b) of this section as he or she deems advisable.

    (d) When the Commissioner shall take action in any or all of the ways set out in subsection (b) of this section, the party aggrieved may appeal the Commissioner's decision to the Supreme Court. (Added 1991, No. 45, § 2, eff. May 29, 1991.)