Vermont § 6057 - Restrictions on insurance purchased by purchasing groups

§ 6057. Restrictions on insurance purchased by purchasing groups

• (a) A purchasing group may not purchase insurance from a risk retention group that is
  not chartered in a state or from an insurer not admitted in the state in which the
  purchasing group is located, unless the purchase is effected through a licensed agent
  or broker acting pursuant to the surplus lines laws and regulations of such state. (b) A purchasing group that obtains liability insurance from an insurer not admitted in
  this State or a risk retention group shall inform each of the members of such group
  that have a risk resident or located in this State that such risk is not protected
  by an insurance insolvency guaranty fund in this State in writing that such risk retention
  group or such insurer may not be subject to all insurance laws and regulations of
  this State. (c) No purchasing group may purchase insurance providing for a deductible or self-insured
  retention applicable to the group as a whole; however, coverage may provide for a
  deductible or self-insured retention applicable to individual members. (d) Purchases of insurance by purchasing groups are subject to the same standards regarding
  aggregate limits that are applicable to all purchases of group insurance. (Added 1991, No. 249 (Adj. Sess.), § 23, eff. Dec. 31, 1992.)