Federal legislation known as the Non-Admitted and Reinsurance Reform Act of 2010 (NRRA) became effective July 21, 2011. The following clarifies Vermont’s accreditation and filing requirements for assuming companies.
Reinsurers Assuming Risks from Vermont Domestic Insurance Companies
Insurers contemplating transactions regarding a transfer & assumption of insurance contracts wherein a novation of existing or in-force contracts is intended, must seek the prior approval of the Commissioner per 8 V.S.A. §8204(e-g) with reference to 8 V.S.A. §8204(h)(1-4) and have all of the related forms approved prior to use per 8 V.S.A. §8204(a), (h)(5) and/or §8207(d-e).
Certain transactions are excluded as reflected in 8 V.S.A. §8202(b) and §8207(b): mergers, liquidations or rehabilitations, guarantee association transactions, and troubled companies.
The Vermont Insurance Division oversees and regulates the insurance industry in Vermont. The Company Licensing Section monitors the financial stability of both domestic and foreign insurers licensed in Vermont. In addition, the Section licenses or authorizes new insurers to do business in the state.