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SUMMARY OF THE 2005 ACTS AND RESOLVES

ACT NO. 36

(S.62)

Financial and related institutions; insurance; captive insurance; securities; Medicare; medical service corporation

This act: (1) eliminates duplicate licensing requirements for debt adjusters and licensed lenders; (2) clarifies the treatment of licensed lender application and license fees; (3) increases the bond amount requirements for licensed lenders and mortgage brokers; (4) clarifies the definition of "debt adjuster" to require licensing in connection with debts involving one or more creditors; (5) corrects an improper cross-reference to the subchapter defining bank trust powers; (6) authorizes reciprocal out-of-state activities by Vermont financial institutions; (7) reduces the minimum size of a group life insurance policy from ten to two; (8) corrects a cross-reference to the definition of an "insurance producer"; (9) permits the commissioner of the department of banking, insurance, securities and health care administration to reduce insurance company minimum capital requirements in the case of a company in the process of dissolution; (10) simplifies the process o f conversion of a for-profit capital insurance company or risk retention group to a nonprofit corporate form; (11) authorizes more flexible investment options for association captive insurance companies and risk retention groups; (12) authorizes the use of approved trust assets or a letter of credit to secure the obligations of a branch captive insurance company; (13) clarifies the list of exempt securities; (14) reflects changes in federal law relating to Medicare and enables the commissioner to adopt emergency rules relating to Medicare Supplement Insurance for the purpose of avoiding federal preemption; and (15) clarifies that a hospital or medical service corporation may provide administrative claims processing and related services.

Effective Date: On passage, June 1, 2005, except for Secs. 2 (licensed lenders and mortgage brokers), 3 (also licensed lenders and mortgage brokers), and 7 (group life insurance)which are effective as of July 1, 2005.



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us