Current through August, 2024
Section 1 Purpose
and Authority
Department of Banking, Insurance, Securities and Health Care
Administration Regulation 97-1-I
RULES PROVIDING FOR OVERSIGHT OF FEES CHARGED BY THE NATIONAL
ASSOCIATION OF INSURANCE COMMISSIONERS AND RETALIATORY ACTION BY THE STATE OF
VERMONT
This regulation is promulgated pursuant to Title 8 Sections
3367 and 3552, and in accordance with the findings and purpose of the General
Assembly as set forth in Act No. 83 of the 1995 Adjourned
Session.
Section 2
Authorized Fees
The fees, assessments or charges imposed by the National
Association of Insurance Commissioners (NAIC) on Vermont domestic insurance
companies for database filings and for valuation of securities, as set forth in
the NAIC Database Participation Packet list of "Filing Fees" and the December
31, 1996 Purposes and Procedures of the Securities Valuation Office of the
National Association of Insurance Commissioners "List of Fees for Services and
Publications," attached hereto as Appendix to the Regulation, are hereby
established and authorized by the Commissioner.
Section 3 Annual Review
The Commissioner shall annually review the fees, assessments
or charges imposed by the NAIC on Vermont domestic insurance companies for
database filings and for valuation of securities to determine if:
(A) Such fees, assessments or charges have
increased, and
(B) If such fees,
assessments or charges have increased by a rate which is higher than the
then-current Consumer Price Index, whether the increase is likely to result in
excessive revenues to the NAIC.
(C)
If such fees, assessments or charges have increased by a rate which is higher
than the then-current Consumer Price Index, the Commissioner shall issue an
order, after public notice and opportunity to comment, stating the
Commissioner's determination as to whether an increase results in excessive
revenues to the office charging the fees, assessments or charges or to the NAIC
as a whole, and the bases for the determination. If the Commissioner determines
that the increase is excessive, the order shall provide that no Vermont
domestic insurer shall be required to pay such fee, assessment or charge, or
any portion thereof determined to be excessive.
(D) The Commissioner shall consider, along
with such other factors deemed appropriate by the Commissioner, whether the
increase and the resulting revenues are reasonable and necessary to achieve the
purposes of the NAIC, and whether the choice of revenue source is
reasonable.
Section 4
Standards and Procedures for Retaliatory Actions
(A) After determination by the Commissioner
that an insurance department or other similar regulatory entity of any other
state or territory of the United States has imposed any sanctions, fines,
penalties, financial or deposit requirements, prohibitions, restrictions,
regulatory requirements, or other obligations of any kind on domestic insurance
companies authorized to transact insurance in this state and licensed to
transact business in such other state or territory:
(1) because the insurance department of this
state is not accredited or otherwise approved by the NAIC, or by any agent or
representative of the association; or
(2) because the insurance department of this
state has not complied with any directive, financial annual statement
requirement, model act or regulation, market conduct or financial examination
report or requirement, or any report or requirement of any kind imposed
directly, or indirectly through the laws or regulations of another state, by
the NAIC, or by any agent or representative of the association; or
(3) because a domestic insurance company has
refused to comply with, file or pay any requirement, report, fee, assessment,
or charge determined by the commissioner to be unreasonable and imposed
directly, or indirectly through the laws or regulations of another state, by
the NAIC, or by any agent or representative of the association;
the commissioner shall impose similar sanctions, fines,
penalties, financial or deposit requirements, prohibitions, restrictions,
regulatory requirements, or other obligations of any kind on the domestic
insurance companies of such other state or territory.
(B) Any Vermont domestic insurance
company upon whom any sanctions, fines, penalties, financial or deposit
requirements, prohibitions, restrictions, regulatory requirements, or other
obligations of any kind are imposed as set forth in subsection (A) of this
Section may request similar imposition by the Commissioner upon the domestic
insurance companies of such other state which are licensed to do business in
Vermont by demonstrating to the Commissioner that the circumstances of the
imposition meet the standard set forth in subsection A(1), (2) or (3) of this
Section.
(C) If any other state
requires a Vermont domestic insurance company licensed to transact insurance in
such state to pay, directly or indirectly, a fee, assessment, or charge of any
kind to the NAIC in excess of the fees, assessments, or charges approved under
Section
2
of this Regulation, such fees, assessments, or charges shall be considered
excessive and shall be imposed by the Commissioner in similar manner upon the
domestic insurers of such other state doing business in this state.
(D) Any Vermont domestic insurance company
upon whom any sanctions, fines, penalties, financial or deposit requirements,
prohibitions, restrictions, regulatory requirements, or other obligations of
any kind are imposed as set forth in Subsection ( C) of this Section, may
request similar imposition by the Commissioner upon the domestic insurance
companies of such other state which are licensed to do business in Vermont by
demonstrating to the Commissioner that the circumstances of the imposition meet
the standard set forth in subsection ( C) of this Section.
Section 5 Effective Date
This Regulation shall be effective on May 10, 1997.
APPENIDX
(Incorporated by Reference Only)
Filing Fees
From: NAIC Database Participation Packet
From: Purposes and Procedures of the Securities Valuation
Office of the National Association of Insurance Commissioners, December 31,
1996.
Statutory Authority:
8 VSA, §
3367,
3552
