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ACT NO. 71

(S.139)

Regulation of Insurance

This act makes miscellaneous amendments and technical corrections to several different areas of insurance regulation. The Gramm-Leach-Bliley Financial Services Modernization Act of 1999 was designed to remove the barriers enacted during the Great Depression between financial service providers, including banks, insurance companies and security firms. In order to permit the integration of financial services, the various regulators, including the Office of Thrift Supervision, Federal Trade Commission, the Securities and Exchange Commission, the Office of the Comptroller of the Currency, the Department of Banking, Insurance, Securities, and Health Care Administration, and also nongovernmental organizations such as the National Association of Security Dealers, will have to share information with each other when appropriate. Because new financial products and services will be created as the industry participants evolve, this act creates a statutory framework for their regulation and enables coordination between regulators. The act makes several technical amendments resulting from a court ruling on insurer liquidation priorities, changes in the industry, and a drafting error in a reference in an act passed last biennium. In addition, the act makes available for three years a nonrefundable tax credit of up to

$5,000.00 for captive insurance companies in their first year of doing business in Vermont, beginning this year.

Effective Date: Effective on passage