Vermont § 4684 - Competitive market

§ 4684. Competitive market

• (a) A competitive market in a type of insurance subject to this chapter is presumed to
  exist unless: (1) the Commissioner, after notice and hearing, determines and orders that a reasonable
  degree of competition does not exist in the market; (2) the average annual increase in premiums or rates in the market is 25 percent or more
  as determined and noticed by the Commissioner; or (3) an insurer uses a claims made liability insurance policy form or endorsement. (b) The Commissioner shall conduct hearings to determine whether a reasonable degree of
  competition exists whenever, in any market over any 12-month period, the average rates
  or premiums increase at least 15 percent, but less than 25 percent, over the average
  rate or premiums for the immediately preceding 12-month period for that market. The
  Commissioner shall not be obligated to hold hearings under this subsection if, based
  on the information available to him or her under subsection 4688(a) of this title and other sources, the Commissioner determines that a competitive market continues
  to exist. (c) Upon a determination of an increase in rates or premiums of 25 percent or more under
  subdivision (a)(2) of this section, the Commissioner may issue a notice that a reasonable
  degree of competition does not exist. Insurers may use their currently filed rates
  for only 120 calendar days after such notice, unless the Commissioner determines that
  it is in the consumer’s best interests to extend this time period. (d) A competitive market does not exist if an insurer uses a claims made liability insurance
  policy form or endorsement. Insurers writing insurance on a claims made basis are
  subject to the prefiling requirements of subdivision 4688(c)(1) of this title. (e) The rates or premiums in a noncompetitive market shall be subject to the prefiling
  requirements set forth in subdivision 4688(c)(1) of this title. (f) An order or notice that a noncompetitive market exists under subdivisions (a)(1) and
  (2) of this section shall expire not later than two years after the order or notice
  issues unless the Commissioner earlier rescinds the order or notice, or continues
  the order or notice upon a further determination that a reasonable degree of competition
  does not exist. Such further determination shall be preceded by public notice, but
  may be made without a hearing unless requested by an interested party. (g) In determining whether a reasonable degree of competition exists under subdivision
  (a)(1) of this section, the Commissioner shall consider relevant structural and functional
  factors in determining the competitiveness of the market, including: the number of
  insurers actively engaged in providing coverage; market shares; and ease of entry. (Added 1983, No. 238 (Adj. Sess.), § 1; 1985, No. 265 (Adj. Sess.), § 1, eff. June 4, 1986; 1987, No. 185 (Adj. Sess.), § 1, eff. May 5, 1988; 1989, No. 128 (Adj. Sess.), § 2; amended 2021, No. 105 (Adj. Sess.), § 219, eff. July 1, 2022.)