§ 3309 - Mutual insurers to commence business; when - Vermont Statutes

§ 3309. Mutual insurers to commence business; when

A corporation which, according to its charter, is not to have a capital stock shall not receive authorization to commence business until it complies with such preliminary requirements for the procurement of an adequate amount of subscriptions for insurance and possesses and thereafter maintains unimpaired basic surplus of not less than $2,000,000.00 and, when first so authorized, shall possess free surplus of not less than $3,000,000.00. The commissioner in his or her discretion may establish lesser surplus amount requirements in the case of affiliated corporations jointly conducting the business of insurance under a pooling agreement. Such surplus shall be in the form of cash or marketable securities, a portion of which may be held on deposit with the state treasurer, such securities as designated by the insurer and approved by the commissioner, in an amount and subject to such conditions determined by the commissioner. Such conditions shall include a requirement that any interest or other earnings attributable to such cash or marketable securities shall inure to the benefit of the insurer until such time as the commissioner determines that the deposit must be used for the benefit of the policyholders of the insurer or some other authorized public purpose relating to the regulation of the insurer. The commissioner may prescribe additional surplus based upon the type, volume, and nature of insurance business transacted. (1967, No. 344 (Adj. Sess.), § 1 (ch. 1, subch. 1, § 9); amended 1991, No. 101, § 2; 2003, No. 105 (Adj. Sess.), § 3.)