Vermont § 4840 - Attorney’s bond

§ 4840. Attorney’s bond

• (a) Concurrently with the filing of the declaration provided for in section 4836 of this title, the attorney of a domestic reciprocal insurer shall file with the Commissioner a
  bond in favor of this State for the benefit of all persons damaged as a result of
  breach by the attorney of the conditions of his or her bond which shall be executed
  by the attorney and by an authorized corporate surety, and which shall be in the form
  as set forth in subsection (b) of this section. The bond shall be executed subject
  to the Commissioner’s approval. (b) The bond shall be in the penal sum of $250,000.00 aggregate in form, conditioned that
  the attorney will faithfully account for all monies and other property of the insurer
  coming into his or her hands, and that he or she will not withdraw or appropriate
  to his or her own use from the funds of the insurer, any monies or property to which
  he or she is not entitled under the power of attorney. (c) The bond shall provide that it is not subject to cancellation unless 30 days’ notice
  in writing of cancellation is given both the attorney and the Commissioner. (d) The Commissioner may waive or reduce the requirements of this section for an attorney
  that is under common ownership or control with a reciprocal insurer. The Commissioner
  may reduce by 50 percent the bond amount required by this section for an attorney
  that is not under common ownership or control with a reciprocal insurer if the Commissioner
  finds sufficient evidence of financial responsibility, notwithstanding the reduction
  of the bond amount. (Added 1971, No. 31, § 1, eff. March 31, 1971; amended 1997, No. 49, § 4, eff. June 26, 1997; 2003, No. 55, § 2; 2007, No. 178 (Adj. Sess.), § 9.)