§ 4795 - Controlled business - Vermont Statutes

§ 4795. Controlled business

(a) The commissioner shall not grant, renew, continue or permit to continue any license except for life insurance if he finds that the license is being or will be used by the applicant or licensee for the purpose of writing controlled business. Controlled business means:

(1) Insurance written on the interests of the licensee or those of his immediate family or of his employer; or

(2) Insurance covering himself or members of his immediate family or a corporation, association or partnership, or the officers, directors, substantial stockholders, partners, employees of the corporation, association or partnership, of which he or a member of his immediate family is an officer, director, substantial stockholder, partner, associate, or employee. Provided, however, that nothing in this subdivision shall apply to insurance written in connection with credit transactions.

(b) The license shall be deemed to have been, or intended to be, used for the purpose of writing controlled business, if the commissioner finds that during any 12-month period the aggregate commissions earned from the controlled business has exceeded 25 percent of the aggregate commission earned on all business written by the applicant or licensee during the same period. (Amended 1969, No. 175 (Adj. Sess.), § 6, eff. March 5, 1970; 1973, No. 217 (Adj. Sess.), § 5.)