Vermont: premium trust account rules

Citation

8 V.S.A. §§ 4804; 4724; 4726

Source chart last reviewed this jurisdiction: 2/25

What the jurisdiction requires

Failure of any insurance agent, broker or insurer to act as a fiduciary in regard to premiums, return premiums or other sums of money received by him in his capacity as insurance agent, insurance broker or insurer by failure to pay or transmit in a timely manner those sums of money to the persons to whom it is owed is defined as unfair methods of competition or unfair or deceptive acts or practices in the business of insurance.

Penalties for diversion

The commissioner may suspend, revoke or refuse to continue or renew any license, after notice and hearing, if he finds the licensee improperly withheld, misappropriated, or converted to his own use any money received during the course of business belonging to policyholders, insurers, beneficiaries or others. In addition to or in lieu of any applicable denial, suspension, or revocation of a license, the commissioner may levy a penalty between $500 and $2,500. If the commissioner finds the producer violated a fiduciary duty, the commissioner may levy a penalty of not more than $1,000 per violation, unless the commissioner finds such violation to be willful, then a penalty of not more than $10,000 may be assessed.

Tie out a Vermont trust account

Tie your premium trust account out three ways — bank, ledger and what you owe — with Vermont's cited rule beside the worksheet. Runs in your browser; nothing is uploaded.