Vermont § 5024 - Conditions for placement of insurance

§ 5024. Conditions for placement of insurance

• (a) Insurance coverage, except as described in section 5025 of this chapter, shall not
  be placed with a surplus lines insurer unless the full amount of insurance required
  is not reasonably procurable from admitted insurers actually transacting that kind
  and class of insurance in this State; and the amount of insurance exported shall be
  only the excess over the amount procurable from admitted insurers actually transacting
  and insuring that kind and class of insurance. (b) Notwithstanding any other provision of this section, the Commissioner may order eligible
  for export any class or classes of insurance coverage or risk for which he or she
  finds there to be an inadequate competitive market among admitted insurers either
  as to acceptance of the risk, contract terms, or premium or premium rate. (c) The due diligence search for reasonably procurable insurance coverage required under
  subsection (a) of this section is not required for an exempt commercial purchaser,
  provided: (1) the surplus lines broker procuring or placing the surplus lines insurance has disclosed
  to the exempt commercial purchaser that such insurance may be available from an admitted
  insurer and may provide greater protection with more regulatory oversight; and (2) the exempt commercial purchaser has subsequently requested in writing the surplus
  lines broker to procure or place such insurance from a non-admitted insurer. (Added 1979, No. 50, § 2; amended 1979, No. 197 (Adj. Sess.), § 3; 2001, No. 97 (Adj. Sess.), § 19; 2011, No. 49, § 3, eff. May 26, 2011; 2019, No. 57, § 6.)