Vermont § 4853 - Nonassessable policies

§ 4853. Nonassessable policies

• (a) If a reciprocal insurer has a surplus of assets over all liabilities at least equal
  to the minimum capital stock and surplus required to be maintained by a domestic stock
  insurer authorized to transact like kinds of insurance, upon application of the attorney
  and as approved by the subscribers’ advisory committee, the Commissioner shall issue
  his or her certificate authorizing the insurer to extinguish the contingent liability
  of subscribers under its policies then in force in this State, and to omit provisions
  imposing contingent liability in all policies delivered or issued for delivery in
  this State for so long as all of the surplus remains unimpaired. (b) Upon impairment of such surplus, the Commissioner shall immediately revoke the certificate.
  The revocation shall not render subject to contingent liability any policy then in
  force and for the remainder of the period for which the premium has previously been
  paid; but after the revocation no policy shall be issued or renewed without providing
  for contingent assessment liability of the subscriber. (c) The Commissioner shall not authorize a domestic reciprocal insurer so to extinguish
  the contingent liability of any of its subscribers or in any of its policies to be
  issued, unless it is qualified to and does extinguish the liability of all its subscribers
  and in all policies for all kinds of insurance transacted by it. Nevertheless, if
  required by the laws of another state in which the insurer is transacting insurance
  as an authorized insurer, the insurer may issue policies providing for the contingent
  liability of such of its subscribers as may acquire such policies in that state, and
  need not extinguish the contingent liability applicable to policies previously in
  force in that state. (Added 1971, No. 31, § 1, eff. March 31, 1971; amended 2021, No. 105 (Adj. Sess.), § 234, eff. July 1, 2022.)