§ 7111. Definitions
As used in this chapter:
(1) “Assuming company” means a Vermont-domiciled company established specifically to acquire
a closed block under a legacy insurance transfer plan approved by the Commissioner.
(2) “Closed block” means a block, line, or group of commercial non-admitted insurance
policies or reinsurance agreements or both:
(A) that a transferring insurer has ceased to offer, write, or sell to new applicants;
(B) for which all policy periods have been fully expired for not less than 60 months;
(C) for which active premiums are no longer being paid; and
(D) that is not workers’ compensation, health, life, or any other personal line of insurance.
(3) “Comment period” means the 60-day period starting on the date notice is issued by
an assuming company under subsection 7112(h) of this chapter. The Commissioner may,
in his or her discretion, extend the comment period for up to an additional 30 days.
(4) “Commissioner” means the Commissioner of Financial Regulation.
(5) “Controlling party” means a person having control of an assuming company or transferring
insurer. “Control” shall have the same meaning as in section 3681 of this title.
(6) “Department” means the Department of Financial Regulation.
(7) “Domicile regulator” means the primary insurance regulatory authority of the domicile
jurisdiction of a transferring insurer.
(8) “Inward reinsurance agreement” means a contract of reinsurance between a transferring
insurer and another insurance company with respect to which a transferring insurer
is a party as the reinsurer.
(9) “Inward reinsurance counterparty” means an insurance company, other than the transferring
insurer, that is a party to an inward reinsurance agreement as the reinsured.
(10) “Legacy insurance transfer” means the transfer of a closed block in accordance with
the requirements of this chapter.
(11) “Legacy insurance transfer plan” or “plan” means a plan that sets forth all provisions
and includes all documentation regarding a legacy insurance transfer required under
subsection 7112(b) of this chapter.
(12) “Non-admitted insurance” means any property and casualty insurance permitted to be
placed directly or through a surplus lines broker with a non-admitted insurer eligible
to accept such insurance.
(13) “Non-admitted insurer” means, with respect to a state, an insurer not licensed to
engage in the business of insurance in such state. The term does not include a risk
retention group or a captive insurance company.
(14) “Outward reinsurance agreement” means a contract of reinsurance between a transferring
insurer and another insurance company with respect to which a transferring insurer
is a party as the reinsured.
(15) “Outward reinsurance counterparty” means an insurance company, other than the transferring
insurer, that is a party to an outward reinsurance agreement as the reinsurer.
(16) “Party” means:
(A) the assuming company;
(B) the transferring insurer;
(C) with respect to any policy to be transferred under a plan, each policyholder;
(D) with respect to any inward reinsurance agreement to be transferred under a plan, each
inward reinsurance counterparty; and
(E) any other person the Commissioner approves as a party with respect to such proceeding.
(17) “Plan summary” means a written statement of the key terms and provisions of a plan
as required under subdivision 7112(b)(19) of this chapter.
(18) “Policy” means a contract of property and casualty insurance that is neither a contract
of reinsurance nor a contract of workers’ compensation, health, life, or any other
personal line of insurance.
(19) “Policyholder” means the person identified as the policyholder or first named in a
policy.
(20) “Reinsurance agreement” means an inward reinsurance agreement or an outward reinsurance
agreement.
(21) “Reinsurance agreement counterparty” means an inward reinsurance agreement counterparty
or an outward reinsurance counterparty.
(22) “Transferring insurer” means a non-admitted insurer that is transferring a closed
block to an assuming company under a legacy insurance transfer plan. (Added 2013, No. 93 (Adj. Sess.), § 3, eff. Feb. 19, 2014.)