2011 Vermont Code
Title 08 Banking and Insurance
Chapter 101 INSURANCE COMPANIES GENERALLY
§ 3681 Definitions

§ 3681. Definitions

As used in this subchapter:

(1) "Affiliate" of, or person "affiliated" with, a specific person, means a person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the person specified.

(2) "Commissioner" means the commissioner of banking, insurance, securities, and health care administration or his or her deputies, as appropriate.

(3) "Control" (including the terms "controlling," "controlled by" and "under common control with") means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract other than a commercial contract for goods or nonmanagement services, or otherwise, unless the power is the result of an official position with or corporate office held by the person. Control shall be presumed to exist if any person, directly or indirectly, owns, controls, holds with the power to vote, or holds proxies representing, 10 percent or more of the voting securities of any other person. This presumption may be rebutted by a showing made in the manner provided by subsection 3684(i) of this title that control does not exist in fact. The commissioner may determine, after furnishing all persons in interest notice and opportunity to be heard and making specific findings of fact to s

upport such determination, that control exists in fact, notwithstanding the absence of a presumption to that effect.

(4) "Insurance holding company system" means two or more affiliated persons, one or more of which is an insurer.

(5) "Insurer" means a company qualified and licensed to transact the business of insurance in this state and shall include a health maintenance organization, a nonprofit hospital service corporation, and a nonprofit medical service corporation, except that it shall not include:

(A) agencies, authorities, or instrumentalities of the United States, its possessions and territories, the Commonwealth of Puerto Rico, the District of Columbia, or a state or political subdivision of a state; or

(B) fraternal benefit societies.

(6) "Person" means an individual, a corporation, a partnership, an association, a joint stock company, a trust, an unincorporated organization, any similar entity or any combination of the foregoing acting in concert, but shall not include any securities broker performing no more than the usual and customary broker's function.

(7) "Security holder" of a specified person means one who owns any security of such person, including common stock, preferred stock, debt obligations, and any other security convertible into or evidencing the right to acquire any of the foregoing.

(8) "Subsidiary" of a specified person means an affiliate controlled by such person directly, or indirectly through one or more intermediaries.

(9) "Voting security" shall include any security convertible into or evidencing a right to acquire a voting security. (Added 1971, No. 72, { 2; amended 1989, No. 225 (Adj. Sess.), { 25(b); 1991, No. 249 (Adj. Sess.), { 14; 1995, No. 180 (Adj. Sess.), { 38(a); 1997, No. 159 (Adj. Sess.), { 3, eff. April 29, 1998; 2003, No. 163 (Adj. Sess.), { 40, eff. June 10, 2004.)