Vermont Statutes Title 8 Sec. 3586
Terms Used In Vermont Statutes Title 8 Sec. 3586
- assessment: means a confidential, internal assessment, appropriate to the nature, scale, and complexity of an insurer or insurance group and conducted by that insurer or insurance group, of the material and relevant risks associated with the insurer's or insurance group's current business plan and the sufficiency of capital resources to support those risks. See
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Direct: when used in connection with "obligation" means that a designated obligor shall be primarily liable on the instrument representing the obligation. See
- following: when used by way of reference to a section of the law shall mean the next preceding or following section. See
- Insurance group: means those insurers and affiliates included within an insurance holding company system as defined in subdivision 3681(5) of this title. See
- State: when applied to the different parts of the United States may apply to the District of Columbia and any territory and the Commonwealth of Puerto Rico. See
- Summary Report: means a confidential high-level summary of an insurer or insurance group's ORSA. See
§ 3586. Exemption
(a) An insurer shall be exempt from the requirements of this subchapter if:
(1) the insurer has annual direct written and unaffiliated assumed premium, including international direct and assumed premium but excluding premiums reinsured with the Federal Crop Insurance Corporation and Federal Flood Program, less than $500,000,000.00; and
(2) the insurance group of which the insurer is a member has annual direct written and unaffiliated assumed premium including international direct and assumed premium, but excluding premiums reinsured with the Federal Crop Insurance Corporation and Federal Flood Program, less than $1,000,000,000.00.
(b) If an insurer qualifies for exemption under subdivision (a)(1) of this section but the insurance group of which the insurer is a member does not qualify for exemption under subdivision (a)(2), then any summary report required under section 3585 of this subchapter shall include every insurer within the insurance group. This requirement may be satisfied by the submission of more than one summary report for any combination of insurers provided any combination of reports includes every insurer within the insurance group.
(c) If an insurer does not qualify for exemption under subdivision (a)(1) of this section but the insurance group of which it is a member qualifies for exemption under subdivision (a)(2), then the only summary report required under section 3585 of this subchapter shall be the report applicable to that insurer.
(d) An insurer that does not qualify for exemption under subsection (a) of this section may apply to the Commissioner for a waiver from the requirements of this subchapter based upon unique circumstances. In deciding whether to grant the insurer’s request for waiver, the Commissioner may consider the type and volume of business written, ownership and organizational structure, and any other factor the Commissioner considers relevant to the insurer or insurance group of which the insurer is a member. If the insurer is part of an insurance group with insurers domiciled in more than one state, the Commissioner shall coordinate with the lead State Commissioner and with the other domiciliary Commissioners in considering whether to grant the insurer’s request for a waiver.
(e) Notwithstanding the exemptions stated in this section:
(1) The Commissioner may require that an insurer maintain a risk management framework, conduct an ORSA, and file an ORSA Summary Report based on unique circumstances including the type and volume of business written, ownership and organizational structure, federal agency requests, and international supervisor requests.
(2) The Commissioner may require that an insurer maintain a risk management framework, conduct an ORSA assessment, and file a summary report if the insurer has risk based capital for company action level event as set forth in section 8303 of this title, meets one or more of the standards of an insurer deemed to be in hazardous financial condition as defined in Department Regulation I-93-2, sections 3-4, or otherwise exhibits qualities of a troubled insurer as determined by the Commissioner.
(f) If an insurer that qualifies for an exemption under subsection (a) of this section subsequently no longer qualifies for that exemption due to changes in premium as reflected in the insurer’s most recent annual statement or in the most recent annual statements of the insurers within the insurance group of which the insurer is a member, the insurer shall have one year following the year the threshold is exceeded to comply with the requirements of this subchapter. (Added 2013, No. 29, § 44, eff. Jan. 1, 2015.)