Vermont Statutes Title 8 Sec. 4172
Terms Used In Vermont Statutes Title 8 Sec. 4172
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Association: means the Vermont Life and Health Insurance Guaranty Association created under section 4176 of this chapter. See
- authorized: when used in the context of assessments means a resolution by the Board of Directors has been passed whereby an assessment will be called immediately or in the future from member insurers for a specified amount. See
- Commissioner: means the Commissioner of Financial Regulation. See
- Member insurer: means any insurer or health maintenance organization licensed or that holds a certificate of authority to transact in this State any kind of insurance or health maintenance organization business for which coverage is provided under section 4173 of this chapter and includes an insurer or health maintenance organization whose license or certificate of authority in this State may have been suspended, revoked, not renewed, or voluntarily withdrawn, but does not include:
§ 4172. Purpose
The purpose of this chapter is to protect, subject to certain limitations, the persons specified in subsection 4173(a) of this chapter against failure in the performance of contractual obligations under life, health, and annuity policies, plans, and contracts specified in subsection 4173(b) of this chapter, due to the impairment or insolvency of the member insurer that issued such policies, plans, or contracts. To provide this protection:
(1) an association of member insurers is created to enable the guaranty of payment of benefits and of continuation of coverages;
(2) members of the Association are subject to assessment to provide funds to carry out the purpose of this chapter; and
(3) the Association is authorized to assist the Commissioner, in the prescribed manner, in the detection and prevention of insurer impairment or insolvency. (Added 2023, No. 32, § 9, eff. July 1, 2023.)