Vermont § 4816 - Applicability of subchapter to controlling producers

§ 4816. Applicability of subchapter to controlling producers

• (a) The provisions of this subchapter shall apply to a controlling producer if, in any
  calendar year, the aggregate amount of gross written premium on business placed with
  a controlled insurer is greater than or equal to five percent of the admitted assets
  of the controlled insurer, as reported in the controlled insurer’s quarterly statement
  filed as of September 30 of the prior year. (b) The provisions of this subchapter shall not apply if the controlling producer: (1) places insurance only with the controlled insurer, or only with the controlled insurer
  and a member or members of the controlled insurer’s holding company system, or the
  controlled insurer’s parent, affiliate, or subsidiary and receives no compensation
  based upon the amount of premiums written in connection with such insurance; (2) accepts insurance placements only from nonaffiliated subproducers, and not directly
  from insureds; and (3) the controlled insurer, except for insurance business written through a residual market
  facility such as The Vermont Automobile Insurance Plan, accepts insurance business
  only from a controlling producer, a producer controlled by the controlled insurer,
  or a producer that is a subsidiary of the controlled insurer. (Added 1991, No. 249 (Adj. Sess.), § 18, eff. Jan. 1, 1993.)