Requirements for Licensing and Formation of a Vermont Domestic Insurance Carrier
- Compliance with Title 8 V.S.A. all sections. Special attention is called to Sections 3302-3313, 3463, 3541, 3542, 3561-64.
- Pursuant to 8 V.S.A., Section 3304: Stock Companies—Capital and/or Surplus $5,000,000. Mutual Companies—Surplus $5,000,000, per Bulletin #43.
- Agreement that proposed company be physically located within the State of Vermont or provide potential alternative contributions to the state’s general good.
- Certified copy of Charter and Articles of Association or By-Laws, including any amendments thereto. (See #6 below.)
- Filing of consolidated financial statement of parent company if applicant is or will be part of a group.
- Holding Company Registration Statement, if applicable, in accordance with Subchapter 13 of Chapter 101, of Title 8 V.S.A., and Department Regulation 71-2.
- Particular attention to Section 3305 of Chapter 101 of Title 8 V.S.A., which states
3305 Petition; hearing. Before the articles of association are transmitted to the Secretary of State, the incorporators shall petition the commissioner to hold a public hearing, in the county where the proposed corporation is to have its principal office, to determine whether the establishment and maintenance of the proposed corporation will promote the general good of the state. The commissioner shall thereupon appoint a time and place in such county for hearing the petition and shall make an order for the publication of the substance of the petition and of the time and place of the hearing three weeks successively in a newspaper published in the county, or, for want thereof, in an adjoining county, the last publication to be at least twelve days before the day appointed for the hearing. If, after the hearing, the commissioner finds and adjudges that the establishment and maintenance of the proposed corporation will promote the general good of the state, he shall give the incorporators a certificate to that effect under his seal. In determining the general good of the state as herein required the commissioner shall consider:
A. The character, reputation, financial standing and purposes of the organizers, incorporators, and subscribers organizing the proposed insurer or organization.”
B. The character, reputation, financial responsibility, insurance experience, and business qualifications of its proposed officers and directors.
C. Such other aspects of the proposed insurer or financing as he may deem advisable.—1967, No. 344 (Adj. Sess.), S. 1 (ch. 1, subch. 1, S. 5), eff. July 1, 1968.”
- Adherence to Section 3306 which states:
S. 3306. Duties of the Secretary of State, records. The articles of association, such certificate and the organization fee shall be transmitted to the secretary of state, who shall thereupon record both the articles and the certificate.—1967, No. 344 (Adj. Sess), S. 1 (ch. 1, subch. 1, S. 6), eff. July 1, 1968. (The secretary of state will reserve a trade name for no more than four months prior to incorporation or use.)
- Company to designate what rating bureau or advisory rating organization, if any, would be used as its rate filing vehicle.
- Upon request, policies and/or endorsements of contracts proposed for use in Vermont including rating plans, and advertising or solicitation material to be used.
- Outline of the company’s proposed plan of operation in Vermont, if admitted, such as:
A. Affiliates already in Vermont, if any.
B. Claims handling and servicing facilities for Vermonters including identification of claims office(s) and personnel, telephone number(s) to be used for customer servicing and complaints, and responsibility for administering such office(s).
C. Recruitment and supervision of agents.
D. Projected volume of business to be transacted over the next five years and in what area or lines of insurance such growth will take place.
- Knowledge of whatever the applicant has applied to any other state or jurisdiction for permission to form a company. If so, and permission has been denied or postponed, please forward a copy of the letter of denial or postponement with appropriate comments.
- Agreement to participate in the Vermont Property & Casualty Insurance Guaranty Association and/or Vermont Life & Health Guaranty Association.
- Perform Organization Examination to verify Capital is in place as stated in application and business plan
- Upon receipt of authorized Certificate of Authority, appointment of a licensed resident agent.
- Arrange deposit with VT Treasurer, if required.