Vermont § 4692 - Joint underwriting; pool and residual market activities

§ 4692. Joint underwriting; pool and residual market activities

• (a) Authorization. Notwithstanding section 4693 of this title, insurers participating in joint underwriting, pools, or residual market mechanisms
  for the purpose of affording insurance under a method of distributing or sharing risks,
  or both, may, in connection with such activity, act in cooperation with each other
  in the making of rates; rating systems; policy forms; underwriting rules; surveys;
  inspections and investigations; the furnishing of loss and expense statistics or other
  information; or carrying on research. Joint underwriting, pools, and residual market
  mechanisms shall not be deemed advisory or service organizations. (b) Regulation. (1) Except to the extent modified by this section, insurers participating in joint underwriting,
  pools, and residual market mechanisms are subject to the other provisions of this
  chapter. (2) If, after a hearing, the Commissioner finds that any activity or practice of an insurer
  participating in joint underwriting or a pool is unfair or unreasonable, he or she
  shall issue a written order specifying in what respects such activity or practice
  is unfair or unreasonable and require the discontinuance of such activity or practice
  in addition to any penalties that may be levied. (3) Every pool shall file for approval of the Commissioner a copy of its constitution,
  articles of association or incorporation, its bylaws, rules, and regulations governing
  its activities; a list of its members; the name and address of one or more residents
  of this State, or the designation of the Secretary of State as a person, upon whom
  notices or orders of the Commissioner or process may be served; and any changes or
  amendments in the foregoing. (4) Any residual market mechanism, plan, or agreement to implement such a mechanism, and
  any amendments thereto, shall be submitted in writing to the Commissioner for consideration
  and approval, together with such information as the Commissioner may reasonably require.
  The Commissioner shall approve only such agreements as are found to contemplate the
  use of rates that meet the standards prescribed by this chapter and activities and
  practices that are not unfair, unreasonable, or otherwise inconsistent with the provisions
  of this chapter. At any time after such agreements are in effect, the Commissioner
  may review the activities and practices of the parties to such agreements and if,
  after a hearing, the Commissioner finds that any such activity or practice is unfair,
  unreasonable, or otherwise inconsistent with the provisions of this chapter, the Commissioner
  shall issue a written order specifying in what respects such activity or practice
  is unfair, unreasonable, or otherwise inconsistent with the provisions of this chapter
  and require the discontinuance of such activity or practice or revoke approval of
  any such agreement. (Added 1983, No. 238 (Adj. Sess.), § 1.)