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State2009 Statute Number 2009 Statute Language2010 Statute Number 2010 Statute Language

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VermontVt. Stat. Ann. tit. 3, § 129a. Unprofessional conduct.(a) In addition to any other provision of law, the following conduct by a licensee constitutes unprofessional conduct. When that conduct is by an applicant or person who later becomes an applicant, it may constitute grounds for denial of a license or other disciplinary action. Any one of the following items, or any combination of items, whether or not the conduct at issue was committed within or outside the state, shall constitute unprofessional conduct:

(1) Fraudulent or deceptive procurement or use of a license.

(2) Advertising that is intended or has a tendency to deceive.

(3) Failing to comply with provisions of federal or state statutes or rules governing the practice of the profession.

(4) Failing to comply with an order of the board or violating any term or condition of a license restricted by the board.

(5) Practicing the profession when medically or psychologically unfit to do so.

(6) Delegating professional responsibilities to a person whom the licensed professional knows, or has reason to know, is not qualified by training, experience, education or licensing credentials to perform them.

(7) Willfully making or filing false reports or records in the practice of the profession; willfully impeding or obstructing the proper making or filing of reports or records or willfully failing to file the proper reports or records.

(8) Failing to make available promptly to a person using professional health care services, that person's representative, succeeding health care professionals or institutions, upon written request and direction of the person using professional health care services, copies of that person's records in the possession or under the control of the licensed practitioner.

(9) Failing to retain client records for a period of seven years, unless laws specific to the profession allow for a shorter retention period. When other laws or agency rules require retention for a longer period of time, the longer retention period shall apply.

(10) Conviction of a crime related to the practice of the profession or conviction of a felony, whether or not related to the practice of the profession.

(11) Failing to report to the office a conviction of any felony or any offense related to the practice of the profession in a Vermont district court, a Vermont superior court, a federal court, or a court outside Vermont within 30 days.

(12) Exercising undue influence on or taking improper advantage of a person using professional services, or promoting the sale of services or goods in a manner which exploits a person for the financial gain of the practitioner or a third party.

(13) Performing treatments or providing services which the licensee is not qualified to perform or which are beyond the scope of the licensee's education, training, capabilities, experience, or scope of practice.

(14) Failing to report to the office within 30 days a change of name or address.

(15) Failing to exercise independent professional judgment in the performance of licensed activities when that judgment is necessary to avoid action repugnant to the obligations of the profession.

(b) Failure to practice competently by reason of any cause on a single occasion or on multiple occasions may constitute unprofessional conduct, whether actual injury to a client, patient, or customer has occurred. Failure to practice competently includes:

(1) performance of unsafe or unacceptable patient or client care; or

(2) failure to conform to the essential standards of acceptable and prevailing practice.

(c) The burden of proof in a disciplinary action shall be on the state to show by a preponderance of the evidence that the person has engaged in unprofessional conduct.

(d) After hearing, and upon a finding of unprofessional conduct, a board or an administrative law officer may take disciplinary action against a licensee or applicant, including imposing an administrative penalty not to exceed $1,000.00 for each unprofessional conduct violation. Any money received under this subsection shall be deposited in the professional regulatory fee fund established in section 124 of this title for the purpose of providing education and training for board members and advisor appointees. The director shall detail in the annual report receipts and expenses from money received under this subsection.

(e) In the case where a standard of unprofessional conduct as set forth in this section conflicts with a standard set forth in a specific board's statute or rule, the standard that is most protective of the public shall govern.
Vt. Stat. Ann. tit. 3, § 129a. Unprofessional conduct.(a) In addition to any other provision of law, the following conduct by a licensee constitutes unprofessional conduct. When that conduct is by an applicant or person who later becomes an applicant, it may constitute grounds for denial of a license or other disciplinary action. Any one of the following items, or any combination of items, whether or not the conduct at issue was committed within or outside the state, shall constitute unprofessional conduct:

(1) Fraudulent or deceptive procurement or use of a license.

(2) Advertising that is intended or has a tendency to deceive.

(3) Failing to comply with provisions of federal or state statutes or rules governing the practice of the profession.

(4) Failing to comply with an order of the board or violating any term or condition of a license restricted by the board.

(5) Practicing the profession when medically or psychologically unfit to do so.

(6) Delegating professional responsibilities to a person whom the licensed professional knows, or has reason to know, is not qualified by training, experience, education, or licensing credentials to perform them, or knowingly providing professional supervision or serving as a preceptor to a person who has not been licensed or registered as required by the laws of that person's profession.

(7) Willfully making or filing false reports or records in the practice of the profession; willfully impeding or obstructing the proper making or filing of reports or records or willfully failing to file the proper reports or records.

(8) Failing to make available promptly to a person using professional health care services, that person's representative, succeeding health care professionals or institutions, upon written request and direction of the person using professional health care services, copies of that person's records in the possession or under the control of the licensed practitioner.

(9) Failing to retain client records for a period of seven years, unless laws specific to the profession allow for a shorter retention period. When other laws or agency rules require retention for a longer period of time, the longer retention period shall apply.

(10) Conviction of a crime related to the practice of the profession or conviction of a felony, whether or not related to the practice of the profession.

(11) Failing to report to the office a conviction of any felony or any offense related to the practice of the profession in a Vermont district court, a Vermont superior court, a federal court, or a court outside Vermont within 30 days.

(12) Exercising undue influence on or taking improper advantage of a person using professional services, or promoting the sale of services or goods in a manner which exploits a person for the financial gain of the practitioner or a third party.

(13) Performing treatments or providing services which the licensee is not qualified to perform or which are beyond the scope of the licensee's education, training, capabilities, experience, or scope of practice.

(14) Failing to report to the office within 30 days a change of name or address.

(15) Failing to exercise independent professional judgment in the performance of licensed activities when that judgment is necessary to avoid action repugnant to the obligations of the profession.

(b) Failure to practice competently by reason of any cause on a single occasion or on multiple occasions may constitute unprofessional conduct, whether actual injury to a client, patient, or customer has occurred. Failure to practice competently includes:

(1) performance of unsafe or unacceptable patient or client care; or

(2) failure to conform to the essential standards of acceptable and prevailing practice.

(c) The burden of proof in a disciplinary action shall be on the state to show by a preponderance of the evidence that the person has engaged in unprofessional conduct.

(d) After hearing, and upon a finding of unprofessional conduct, a board or an administrative law officer may take disciplinary action against a licensee or applicant, including imposing an administrative penalty not to exceed $1,000.00 for each unprofessional conduct violation. Any money received under this subsection shall be deposited in the professional regulatory fee fund established in section 124 of this title for the purpose of providing education and training for board members and advisor appointees. The director shall detail in the annual report receipts and expenses from money received under this subsection.

(e) In the case where a standard of unprofessional conduct as set forth in this section conflicts with a standard set forth in a specific board's statute or rule, the standard that is most protective of the public shall govern.

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Vt. Stat. Ann. tit. 3, § 2506. Penalties.Any person who uses the market Vermont logo without authority, after it has been filed with the secretary of state in accordance with section 2504 of this title, shall be deemed to have committed an unfair or deceptive act or practice within the meaning of 9 V.S.A. § 2453 and shall be subject to the penalties and injunctive authority provided in 9 V.S.A. chapter 63.Vt. Stat. Ann. tit. 3, § 2506. Penalties.Any person who uses the market Vermont logo without authority, after it has been filed with the secretary of state in accordance with section 2504 of this title, shall be deemed to have committed an unfair or deceptive act or practice within the meaning of 9 V.S.A. § 2453 and shall be subject to the penalties and injunctive authority provided in 9 V.S.A. chapter 63.

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Vt. Stat. Ann. tit. 6, § 493. Labeling container of artificial maple flavored products.It shall be unlawful to use the term "maple syrup" or "maple sugar," however modified, to describe any product, flavoring, sweetener, or food additive unless the product, flavoring, sweetener, or food additive so described meets the statutory definition of "maple syrup" or "maple sugar." Terms such as "artificial maple syrup" or "artificial maple sugar" are declared to be misleading and deceptive and may not be used in the labeling or advertising of any product. Terms such as "artificial maple flavor" or "artificial maple flavor sweetener" may be used to describe a product flavored or sweetened with a substance which attempts to duplicate real maple flavor, providing that words such as "artificial," "flavor," and other modifiers of the word "maple" shall appear in equal prominence to the word "maple" on the label and in all advertising of the product.Vt. Stat. Ann. tit. 6, § 493. Labeling container of artificial maple flavored products.It shall be unlawful to use the term "maple syrup" or "maple sugar," however modified, to describe any product, flavoring, sweetener, or food additive unless the product, flavoring, sweetener, or food additive so described meets the statutory definition of "maple syrup" or "maple sugar." Terms such as "artificial maple syrup" or "artificial maple sugar" are declared to be misleading and deceptive and may not be used in the labeling or advertising of any product. Terms such as "artificial maple flavor" or "artificial maple flavor sweetener" may be used to describe a product flavored or sweetened with a substance which attempts to duplicate real maple flavor, providing that words such as "artificial," "flavor," and other modifiers of the word "maple" shall appear in equal prominence to the word "maple" on the label and in all advertising of the product.

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Vt. Stat. Ann. tit. 6, § 2751. Unfair discrimination.A handler doing business in this state and engaged in the business of buying dairy products for the purpose of manufacture or sale who, or whose agents, officers, or employees, shall begin or continue such methods or practices as to create a monopoly, or to restrain trade or to prevent or limit competition or to destroy the business of a competitor, or to destroy or affect adversely the operations of a producers' cooperative bargaining or marketing association organized under the Vermont cooperative marketing act, subchapter 2 of chapter 7 of Title 11 or similar laws of another state and doing business in Vermont, shall discriminate between different sections, communities, localities, cities or towns of this state by purchasing such commodity at a higher price or rate in one section, community, location, city or town than is paid for the same commodity by such person, firm, handler, association, or corporation in another section, community, locality, city or town after making due al

lowance for the difference, if any, in the grade or quality and in the actual cost of transportation from the point of purchase to the point of manufacture or sale, or who shall so discriminate between different persons in the same section, community, location, city or town by purchasing such commodity at a lower price from one person than paid for the same commodity to another person after making due allowance for the difference, if any, in the grade or quality and in the actual cost of transportation from the point of purchase to the point of manufacture, or who shall so discriminate between different persons by refusing to purchase, within the limits of its actual requirements, such commodities from a person, or his or her agent, offering the same for sale, on the ground that such person has executed a marketing contract with a cooperative marketing association by the terms of which such cooperative marketing association has been designated the marketing agent of such person for suc

h commodities, or who shall intimidate or attempt to intimidate members of such a producers' cooperative bargaining association for the purpose of causing them to withdraw from such membership or who shall intimidate or attempt to intimidate producers of dairy products for the purpose of preventing them from joining such an association shall be deemed guilty of unfair discrimination. It shall not be necessary to prove intent in reference to the methods or practices prohibited in this section, nor shall this section be construed to prevent milk handlers from paying, and milk producers who have installed farm bulk tanks from receiving such payments in addition to the payment for can milk as may be mutually agreed upon.
Vt. Stat. Ann. tit. 6, § 2751. Unfair discrimination.A handler doing business in this state and engaged in the business of buying dairy products for the purpose of manufacture or sale who, or whose agents, officers, or employees, shall begin or continue such methods or practices as to create a monopoly, or to restrain trade or to prevent or limit competition or to destroy the business of a competitor, or to destroy or affect adversely the operations of a producers' cooperative bargaining or marketing association organized under the Vermont cooperative marketing act, subchapter 2 of chapter 7 of Title 11 or similar laws of another state and doing business in Vermont, shall discriminate between different sections, communities, localities, cities or towns of this state by purchasing such commodity at a higher price or rate in one section, community, location, city or town than is paid for the same commodity by such person, firm, handler, association, or corporation in another section, community, locality, city or town after making due al

lowance for the difference, if any, in the grade or quality and in the actual cost of transportation from the point of purchase to the point of manufacture or sale, or who shall so discriminate between different persons in the same section, community, location, city or town by purchasing such commodity at a lower price from one person than paid for the same commodity to another person after making due allowance for the difference, if any, in the grade or quality and in the actual cost of transportation from the point of purchase to the point of manufacture, or who shall so discriminate between different persons by refusing to purchase, within the limits of its actual requirements, such commodities from a person, or his or her agent, offering the same for sale, on the ground that such person has executed a marketing contract with a cooperative marketing association by the terms of which such cooperative marketing association has been designated the marketing agent of such person for suc

h commodities, or who shall intimidate or attempt to intimidate members of such a producers' cooperative bargaining association for the purpose of causing them to withdraw from such membership or who shall intimidate or attempt to intimidate producers of dairy products for the purpose of preventing them from joining such an association shall be deemed guilty of unfair discrimination. It shall not be necessary to prove intent in reference to the methods or practices prohibited in this section, nor shall this section be construed to prevent milk handlers from paying, and milk producers who have installed farm bulk tanks from receiving such payments in addition to the payment for can milk as may be mutually agreed upon.

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Vt. Stat. Ann. tit. 6, § 2964. Vermont agricultural products; identification and definition; seal of quality(a) A producer or packer of agricultural products produced in Vermont annually may apply to the secretary for an identification label which may be applied to his or her products to indicate that they have been produced in Vermont and have met standards of quality as have been or may be established by the secretary. The person requesting the labels shall annually pay a fee established by the secretary by rule. The applicant shall also pay for the cost of all labels requested.

(b) The agency of agriculture, food and markets may promote with good taste the agricultural products identification program and may sell, or otherwise distribute, promotional articles.

(c) All funds received under this section shall be retained by the agency for administration of the products identification program.

(d) The labels provided for in this section shall be designed and issued by the agency of agriculture, food and markets.

(e) As used in this chapter, "agricultural products" means any product of a farming operation as defined in 10 V.S.A. § 6001(22)(A), (B), (C), (D), and poultry slaughtered and inspected using a mobile processing unit authorized pursuant to subdivision 3305(17) of this title.

(f) The secretary shall annually review the effectiveness of the identification program for increasing the value of Vermont agricultural products.

(g) Third party verification. The secretary may adopt rules to design and implement a third party verification process under which a qualified, independent person or entity shall verify that an agricultural product has been produced or processed in Vermont in compliance with this section and rules adopted by the secretary pursuant to this section, and that the product meets the standards of quality established by the secretary for the product. The secretary shall determine who is responsible for the cost of the required verification.
Vt. Stat. Ann. tit. 6, § 2964. Vermont agricultural products; identification and definition; seal of quality(a) A producer or packer of agricultural products produced in Vermont annually may apply to the secretary for an identification label which may be applied to his or her products to indicate that they have been produced in Vermont and have met standards of quality as have been or may be established by the secretary. The person requesting the labels shall annually pay a fee established by the secretary by rule. The applicant shall also pay for the cost of all labels requested.

(b) The agency of agriculture, food and markets may promote with good taste the agricultural products identification program and may sell, or otherwise distribute, promotional articles.

(c) All funds received under this section shall be retained by the agency for administration of the products identification program.

(d) The labels provided for in this section shall be designed and issued by the agency of agriculture, food and markets.

(e) As used in this chapter, "agricultural products" means any product of a farming operation as defined in 10 V.S.A. § 6001(22)(A), (B), (C), (D), and poultry slaughtered and inspected using a mobile processing unit authorized pursuant to subdivision 3305(17) of this title.

(f) The secretary shall annually review the effectiveness of the identification program for increasing the value of Vermont agricultural products.

(g) Third party verification. The secretary may adopt rules to design and implement a third party verification process under which a qualified, independent person or entity shall verify that an agricultural product has been produced or processed in Vermont in compliance with this section and rules adopted by the secretary pursuant to this section, and that the product meets the standards of quality established by the secretary for the product. The secretary shall determine who is responsible for the cost of the required verification.

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Vt. Stat. Ann. tit. 7, § 1010. Internet sales.(a) As used in this section:

(1) "Cigarette" has the same definition as that found at 32 V.S.A. § 7702(1).

(2) "Distributor" has the same definition as that found at 32 V.S.A. § 7702(4).

(3) "Licensed wholesale dealer" has the same definition as that found at 32 V.S.A § 7702(5).

(4) "Little cigars" has the same definition as that found at 32 V.S.A. § 7702(6).

(5) "Retail dealer" has the same definition as that found at 32 V.S.A. § 7702(10).

(6) "Roll-your-own tobacco" has the same definition as that found at 32 V.S.A § 7702(11).

(7) "Snuff" has the same definition as that found at 32 V.S.A. § 7702(13).

(b) No person shall cause cigarettes, roll-your-own tobacco, little cigars, or snuff, ordered or purchased by mail or through a computer network, telephonic network, or other electronic network, to be shipped to anyone other than a licensed wholesale dealer, distributor, or retail dealer in this state.

(c) No person shall, with knowledge or reason to know of the violation, provide substantial assistance to a person in violation of this section.

(d) A violation of this section is punishable as follows:

(1) A knowing or intentional violation of this section shall be punishable by imprisonment for not more than five years or a fine of not more than $5,000.00, or both.

(2) In addition to or in lieu of any other civil or criminal remedy provided by law, upon a determination that a person has violated this section, the attorney general may impose a civil penalty in an amount not to exceed $5,000.00 for each violation. For purposes of this subsection, each shipment or transport of cigarettes, roll-your-own tobacco, little cigars, or snuff shall constitute a separate violation.

(3) The attorney general may seek an injunction to restrain a threatened or actual violation of this section.

(4) In any action brought pursuant to this section, the state shall be entitled to recover the costs of investigation, of expert witness fees, of the action, and reasonable attorney's fees.

(5) A person who violates this section engages in an unfair and deceptive trade practice in violation of the state's Consumer Fraud Act, 9 V.S.A. §§ 2451 et seq.

(6) If a court determines that a person has violated the provisions of this section, the court shall order any profits, gain, gross receipts, or other benefit from the violation to be disgorged and paid to the state treasurer for deposit in the general fund.

(7) Unless otherwise expressly provided, the penalties or remedies, or both, under this section are in addition to any other penalties and remedies available under any other law of this state.
Vt. Stat. Ann. tit. 7, § 1010. Internet sales.(a) As used in this section:

(1) "Cigarette" has the same definition as that found at 32 V.S.A. § 7702(1).

(2) "Distributor" has the same definition as that found at 32 V.S.A. § 7702(4).

(3) "Licensed wholesale dealer" has the same definition as that found at 32 V.S.A § 7702(5).

(4) "Little cigars" has the same definition as that found at 32 V.S.A. § 7702(6).

(5) "Retail dealer" has the same definition as that found at 32 V.S.A. § 7702(10).

(6) "Roll-your-own tobacco" has the same definition as that found at 32 V.S.A § 7702(11).

(7) "Snuff" has the same definition as that found at 32 V.S.A. § 7702(13).

(b) No person shall cause cigarettes, roll-your-own tobacco, little cigars, or snuff, ordered or purchased by mail or through a computer network, telephonic network, or other electronic network, to be shipped to anyone other than a licensed wholesale dealer, distributor, or retail dealer in this state.

(c) No person shall, with knowledge or reason to know of the violation, provide substantial assistance to a person in violation of this section.

(d) A violation of this section is punishable as follows:

(1) A knowing or intentional violation of this section shall be punishable by imprisonment for not more than five years or a fine of not more than $5,000.00, or both.

(2) In addition to or in lieu of any other civil or criminal remedy provided by law, upon a determination that a person has violated this section, the attorney general may impose a civil penalty in an amount not to exceed $5,000.00 for each violation. For purposes of this subsection, each shipment or transport of cigarettes, roll-your-own tobacco, little cigars, or snuff shall constitute a separate violation.

(3) The attorney general may seek an injunction to restrain a threatened or actual violation of this section.

(4) In any action brought pursuant to this section, the state shall be entitled to recover the costs of investigation, of expert witness fees, of the action, and reasonable attorney's fees.

(5) A person who violates this section engages in an unfair and deceptive trade practice in violation of the state's Consumer Fraud Act, 9 V.S.A. §§ 2451 et seq.

(6) If a court determines that a person has violated the provisions of this section, the court shall order any profits, gain, gross receipts, or other benefit from the violation to be disgorged and paid to the state treasurer for deposit in the general fund.

(7) Unless otherwise expressly provided, the penalties or remedies, or both, under this section are in addition to any other penalties and remedies available under any other law of this state.

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Vt. Stat. Ann. tit. 8, § 24. Senior Investor Protection.(a) The commissioner may, in addition to other powers conferred on the commissioner by law, adopt rules and issue orders necessary to protect senior investors from being misled by false or misleading certifications, licenses, professional designations, or other credentials that imply or indicate a special level of knowledge with regard to senior investors or their needs in the sale of securities or insurance or both in the providing of investment advice.

(b) To implement the protections described in subsection (a) of this section, the commissioner may:

(1) establish standards for senior-specific certifications, licenses, professional designations, and other credentials;

(2) develop initiatives to investigate and take action against fraudulent, misleading, dishonest, or unethical marketing practices directed toward seniors;

(3) develop educational materials and training aimed at reducing such marketing practices; and

(4) accept grants from government or private entities to fund the activities set forth in this section.

(c) Any rules adopted or orders issued by the commissioner under this section shall conform to the extent practicable to the North American Securities Administrators Association Model Rule on the Use of Senior-Specific Certifications and Professional Designation, as amended, and the National Association of Insurance Commissioners Model Regulation on the Use of Senior-Specific Certifications and Professional Designations in the Sale of Life Insurance and Annuities, as amended.

(d)(1) A violation of a rule adopted or orders issued under this section with respect to the business of insurance shall constitute an unfair or deceptive act or practice in the business of insurance, and the commissioner may enforce such violations pursuant to the commissioner's authority conferred by the Insurance Trade Practices Act, chapter 129 of this title, and pursuant to any other authority conferred upon the commissioner by law.

(2) A violation of a rule adopted or order issued under this section with respect to the business of securities and investment advice shall constitute a violation of subdivision 5412(d)(13) of Title 9, and the commissioner may enforce such violations pursuant to the commissioner's authority conferred by the Vermont Uniform Securities Act, chapter 150 of Title 9, and pursuant to any other authority conferred upon the commissioner by law.
Vt. Stat. Ann. tit. 8, § 24. Senior Investor Protection.(a) The commissioner may, in addition to other powers conferred on the commissioner by law, adopt rules and issue orders necessary to protect senior investors from being misled by false or misleading certifications, licenses, professional designations, or other credentials that imply or indicate a special level of knowledge with regard to senior investors or their needs in the sale of securities or insurance or both in the providing of investment advice.

(b) To implement the protections described in subsection (a) of this section, the commissioner may:

(1) establish standards for senior-specific certifications, licenses, professional designations, and other credentials;

(2) develop initiatives to investigate and take action against fraudulent, misleading, dishonest, or unethical marketing practices directed toward seniors;

(3) develop educational materials and training aimed at reducing such marketing practices; and

(4) accept grants from government or private entities to fund the activities set forth in this section.

(c) Any rules adopted or orders issued by the commissioner under this section shall conform to the extent practicable to the North American Securities Administrators Association Model Rule on the Use of Senior-Specific Certifications and Professional Designation, as amended, and the National Association of Insurance Commissioners Model Regulation on the Use of Senior-Specific Certifications and Professional Designations in the Sale of Life Insurance and Annuities, as amended.

(d)(1) A violation of a rule adopted or orders issued under this section with respect to the business of insurance shall constitute an unfair or deceptive act or practice in the business of insurance, and the commissioner may enforce such violations pursuant to the commissioner's authority conferred by the Insurance Trade Practices Act, chapter 129 of this title, and pursuant to any other authority conferred upon the commissioner by law.

(2) A violation of a rule adopted or order issued under this section with respect to the business of securities and investment advice shall constitute a violation of subdivision 5412(d)(13) of Title 9, and the commissioner may enforce such violations pursuant to the commissioner's authority conferred by the Vermont Uniform Securities Act, chapter 150 of Title 9, and pursuant to any other authority conferred upon the commissioner by law.

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Vt. Stat. Ann. tit. 8, § 2200. Definitions.As used in this chapter:

(1) "Commercial loan" means any loan or extension of credit that is described in 9 V.S.A. § 46(1), (2), or (4). The term does not include a loan or extension of credit secured in whole or in part by an owner occupied one- to four-unit dwelling.

(2) "Commissioner" means the commissioner of banking, insurance, securities, and health care administration.

(3) "Control" means the possession, direct or indirect, of the power to direct or cause the direction of the management or 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 or other interest of any other person.

(4) "Depository institution" has the same meaning as in Section 3 of the Federal Deposit Insurance Act, 12 U.S.C. § 1813(c), which includes any bank and any savings association as defined in Section 3 of the Federal Deposit Insurance Act. For purposes of this chapter, "depository institution" also includes any credit union organized and regulated as such under the laws of the United States or any state or territory of the United States.

(5) "Federal banking agencies" means the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, the Office of Thrift Supervision, the National Credit Union Administration, and the Federal Deposit Insurance Corporation or any successor of any of these.

(6) "Holder" shall have the meaning set forth in 9 V.S.A. § 1-201(b)(21).

(7) "Immediate family member" means a spouse, child, sibling, parent, grandparent, or grandchild, including stepparents, stepchildren, stepsiblings, and adoptive relationships.

(8) "Individual" means a natural person.

(9) "Insurance company" shall mean an institution organized and regulated as such under the laws of the state of Vermont or any state or territory of the United States.

(10) "Licensee" means any person subject to the provisions of section 2201 of this title.

(11) "Loan processor or underwriter" means an individual who performs clerical or support duties as an employee at the direction of and subject to the supervision and instruction of a person licensed, or exempt from licensing, under this chapter.

(A) For purposes of this subdivision (11), the term "clerical or support duties" may include, subsequent to the receipt of a loan application:

(i) The receipt, collection, distribution, and analysis of information common for the processing or underwriting of a residential mortgage loan; and

(ii) Communicating with a consumer to obtain the information necessary for the processing or underwriting of a loan, to the extent that such communication does not include offering or negotiating loan rates or terms, or counseling consumers about residential mortgage loan rates or terms.

(B) An individual engaging solely in loan processor or underwriter activities shall not represent to the public, through advertising or other means of communicating or providing information, including the use of business cards, stationery, brochures, signs, rate lists, or other promotional items, that such individual can or will perform any of the activities of a mortgage loan originator.

(12) "Mortgage broker" means any person who for compensation or gain, or in the expectation of compensation or gain, directly or indirectly negotiates, places, assists in placement, finds or offers to negotiate, place, assist in placement or find mortgage loans, other than commercial loans, on real property for others. The term shall not include real estate brokers or salespersons, as defined in 26 V.S.A. § 2211, who in connection with services performed in a prospective real estate transaction, provide mortgage information or assistance to a buyer, if such real estate broker or real estate salesperson is not compensated for providing such mortgage information or assistance in addition to the compensation received from the seller or buyer for such real estate brokerage activity. The term shall not include attorneys licensed to practice law in this state acting in their professional capacity. The term shall not include persons engaged in the foregoing activities solely in conne

ction with the sale, assignment, or other transfer of one or more previously originated loans.

(13) "Mortgage loan" means a loan secured primarily by a lien against real estate.

(14) "Mortgage loan originator":

(A) Means an individual who for compensation or gain or in the expectation of compensation or gain:

(i) Takes a residential mortgage loan application; or

(ii) Offers or negotiates terms of a residential mortgage loan;

(B) Does not include:

(i) an individual engaged solely as a loan processor or underwriter, except as otherwise provided in subsection 2201(f) of this chapter;

(ii) a person or entity that only performs real estate brokerage activities and is licensed or registered in accordance with Vermont law, unless the person or entity is compensated by a buyer or a seller in addition to the compensation received for such real estate brokerage activity or is compensated by a lender, a mortgage broker, or other mortgage loan originator or by any agent of such lender, mortgage broker, or other mortgage loan originator; and

(iii) a person or entity solely involved in extensions of credit relating to timeshare plans, as that term is defined in Section 101(53D) of Title 11, United States Code.

(15) "Nationwide Mortgage Licensing System and Registry" means a mortgage licensing system developed and maintained by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators for the licensing and registration of licensed mortgage loan originators, or any successor to the Nationwide Mortgage Licensing System and Registry.

(16) "Nontraditional mortgage product" means any mortgage product other than a 30-year fixed rate mortgage.

(17) "Person" shall have the meaning set forth in 1 V.S.A. § 128 and includes a natural person, corporation, company, limited liability company, partnership, or association.

(18) "Real estate brokerage activity" means any activity that involves offering or providing real estate brokerage services to the public, including:

(A) Acting as a real estate agent or real estate broker for a buyer, seller, lessor, or lessee of real property;

(B) Bringing together parties interested in the sale, purchase, lease, rental, or exchange of real property;

(C) Negotiating, on behalf of any party, any portion of a contract relating to the sale, purchase, lease, rental, or exchange of real property (other than in connection with providing financing with respect to any such transaction);

(D) Engaging in any activity for which a person engaged in the activity is required to be registered or licensed as a real estate agent or real estate broker under any applicable law; and

(E) Offering to engage in any activity or act in any capacity described in subdivision (A), (B), (C), or (D) of this subdivision (18).

(19) "Registered mortgage loan originator" means any individual who:

(A) meets the definition of mortgage loan originator and is an employee of:

(i) A depository institution;

(ii) A subsidiary that is:

(I) Owned and controlled by a depository institution, as determined by a federal banking agency; and

(II) Regulated by a federal banking agency; or

(iii) An institution regulated by the Farm Credit Administration; and

(B) is registered with, and maintains a unique identifier through, the Nationwide Mortgage Licensing System and Registry.

(20) "Residential mortgage loan" means any loan primarily for personal, family, or household use that is secured by a mortgage, deed of trust, or other equivalent consensual security interest on a dwelling (as defined in section 103(v) of the Truth in Lending Act) or residential real estate upon which is constructed or intended to be constructed a dwelling (as so defined).

(21) "Residential real estate" means any real property located in Vermont, upon which is constructed or intended to be constructed a dwelling.

(22) "Sales finance company" means any person who has purchased one or more retail installment contracts, as defined in 9 V.S.A. § 2351(5) and 2401(7), from one or more retail sellers located in this state. Taking one or more retail installment contracts as security for a loan or loans shall not be construed as purchasing for purposes of this definition.

(23) "Unique identifier" means a number or other identifier assigned by protocols established by the Nationwide Mortgage Licensing System and Registry.
Vt. Stat. Ann. tit. 8, § 2200. Definitions.As used in this chapter:

(1) "Commercial loan" means any loan or extension of credit that is described in 9 V.S.A. § 46(1), (2), or (4). The term does not include a loan or extension of credit secured in whole or in part by an owner occupied one- to four-unit dwelling.

(2) "Commissioner" means the commissioner of banking, insurance, securities, and health care administration.

(3) "Control" means the possession, direct or indirect, of the power to direct or cause the direction of the management or 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 or other interest of any other person.

(4) "Depository institution" has the same meaning as in Section 3 of the Federal Deposit Insurance Act, 12 U.S.C. § 1813(c), which includes any bank and any savings association as defined in Section 3 of the Federal Deposit Insurance Act. For purposes of this chapter, "depository institution" also includes any credit union organized and regulated as such under the laws of the United States or any state or territory of the United States.

(5) "Federal banking agencies" means the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, the Office of Thrift Supervision, the National Credit Union Administration, and the Federal Deposit Insurance Corporation or any successor of any of these.

(6) "Holder" shall have the meaning set forth in 9 V.S.A. § 1-201(b)(21).

(7) "Immediate family member" means a spouse, child, sibling, parent, grandparent, or grandchild, including stepparents, stepchildren, stepsiblings, and adoptive relationships.

(8) "Individual" means a natural person.

(9) "Insurance company" shall mean an institution organized and regulated as such under the laws of the state of Vermont or any state or territory of the United States.

(10) "Licensee" means any person subject to the provisions of section 2201 of this title.

(11) "Loan processor or underwriter" means an individual who performs clerical or support duties as an employee at the direction of and subject to the supervision and instruction of a person licensed, or exempt from licensing, under this chapter.

(A) For purposes of this subdivision (11), the term "clerical or support duties" may include, subsequent to the receipt of a loan application:

(i) The receipt, collection, distribution, and analysis of information common for the processing or underwriting of a residential mortgage loan; and

(ii) Communicating with a consumer to obtain the information necessary for the processing or underwriting of a loan, to the extent that such communication does not include offering or negotiating loan rates or terms, or counseling consumers about residential mortgage loan rates or terms.

(B) An individual engaging solely in loan processor or underwriter activities shall not represent to the public, through advertising or other means of communicating or providing information, including the use of business cards, stationery, brochures, signs, rate lists, or other promotional items, that such individual can or will perform any of the activities of a mortgage loan originator.

(12) "Mortgage broker" means any person who for compensation or gain, or in the expectation of compensation or gain, directly or indirectly negotiates, places, assists in placement, finds or offers to negotiate, place, assist in placement or find mortgage loans, other than commercial loans, on real property for others. The term shall not include real estate brokers or salespersons, as defined in 26 V.S.A. § 2211, who in connection with services performed in a prospective real estate transaction, provide mortgage information or assistance to a buyer, if such real estate broker or real estate salesperson is not compensated for providing such mortgage information or assistance in addition to the compensation received from the seller or buyer for such real estate brokerage activity. The term shall not include attorneys licensed to practice law in this state acting in their professional capacity. The term shall not include persons engaged in the foregoing activities solely in conne

ction with the sale, assignment, or other transfer of one or more previously originated loans.

(13) "Mortgage loan" means a loan secured primarily by a lien against real estate.

(14) "Mortgage loan originator":

(A) Means an individual who for compensation or gain or in the expectation of compensation or gain:

(i) Takes a residential mortgage loan application; or

(ii) Offers or negotiates terms of a residential mortgage loan;

(B) Does not include:

(i) an individual engaged solely as a loan processor or underwriter, except as otherwise provided in subsection 2201(f) of this chapter;

(ii) a person or entity that only performs real estate brokerage activities and is licensed or registered in accordance with Vermont law, unless the person or entity is compensated by a buyer or a seller in addition to the compensation received for such real estate brokerage activity or is compensated by a lender, a mortgage broker, or other mortgage loan originator or by any agent of such lender, mortgage broker, or other mortgage loan originator; and

(iii) a person or entity solely involved in extensions of credit relating to timeshare plans, as that term is defined in Section 101(53D) of Title 11, United States Code.

(15) "Nationwide Mortgage Licensing System and Registry" means a mortgage licensing system developed and maintained by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators for the licensing and registration of licensed mortgage loan originators, or any successor to the Nationwide Mortgage Licensing System and Registry.

(16) "Nontraditional mortgage product" means any mortgage product other than a 30-year fixed rate mortgage.

(17) "Person" shall have the meaning set forth in 1 V.S.A. § 128 and includes a natural person, corporation, company, limited liability company, partnership, or association.

(18) "Real estate brokerage activity" means any activity that involves offering or providing real estate brokerage services to the public, including:

(A) Acting as a real estate agent or real estate broker for a buyer, seller, lessor, or lessee of real property;

(B) Bringing together parties interested in the sale, purchase, lease, rental, or exchange of real property;

(C) Negotiating, on behalf of any party, any portion of a contract relating to the sale, purchase, lease, rental, or exchange of real property (other than in connection with providing financing with respect to any such transaction);

(D) Engaging in any activity for which a person engaged in the activity is required to be registered or licensed as a real estate agent or real estate broker under any applicable law; and

(E) Offering to engage in any activity or act in any capacity described in subdivision (A), (B), (C), or (D) of this subdivision (18).

(19) "Registered mortgage loan originator" means any individual who:

(A) meets the definition of mortgage loan originator and is an employee of:

(i) A depository institution;

(ii) A subsidiary that is:

(I) Owned and controlled by a depository institution, as determined by a federal banking agency; and

(II) Regulated by a federal banking agency; or

(iii) An institution regulated by the Farm Credit Administration; and

(B) is registered with, and maintains a unique identifier through, the Nationwide Mortgage Licensing System and Registry.

(20) "Residential mortgage loan" means any loan primarily for personal, family, or household use that is secured by a mortgage, deed of trust, or other equivalent consensual security interest on a dwelling (as defined in section 103(v) of the Truth in Lending Act) or residential real estate upon which is constructed or intended to be constructed a dwelling (as so defined).

(21) "Residential real estate" means any real property located in Vermont, upon which is constructed or intended to be constructed a dwelling.

(22) "Sales finance company" means any person who has purchased one or more retail installment contracts, as defined in 9 V.S.A. § 2351(5) and 2401(7), from one or more retail sellers located in this state. Taking one or more retail installment contracts as security for a loan or loans shall not be construed as purchasing for purposes of this definition.

(23) "Unique identifier" means a number or other identifier assigned by protocols established by the Nationwide Mortgage Licensing System and Registry.

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Vt. Stat. Ann. tit. 8, § 2201. Licenses required.(a) No person shall without first obtaining a license under this chapter from the commissioner:

(1) engage in the business of making loans of money, credit, goods or things in action and charge, contract for or receive on any such loan interest, a finance charge, discount or consideration therefore;

(2) act as a mortgage broker;

(3) act as a mortgage loan originator; or

(4) act as a sales finance company.

(b) Each licensed mortgage loan originator must register with and maintain a valid unique identifier with the Nationwide Mortgage Licensing System and Registry and must be either:

(1) an employee actively employed at a licensed location of, and supervised and sponsored by, only one licensed lender or licensed mortgage broker operating in this state;

(2) an individual sole proprietor who is also a licensed lender or licensed mortgage broker.

(c) A person licensed pursuant to subdivision (a)(1) of this section may engage in mortgage brokerage and sales finance if such person informs the commissioner in advance that he or she intends to engage in sales finance and mortgage brokerage. Such person shall inform the commissioner of his or her intention on the original license application under section 2202 of this title, any renewal application under section 2209 of this title, or pursuant to section 2208 of this title, and shall pay the applicable fees required by subsection 2202(b) of this title for a mortgage broker license or sales finance company license.

(d) No lender license, mortgage broker license, or sales finance company license shall be required of:

(1) a state agency, political subdivision, or other public instrumentality of the state;

(2) a federal agency or other public instrumentality of the United States;

(3) a gas or electric utility subject to the jurisdiction of the public service board engaging in energy conservation or safety loans;

(4) a depository institution;

(5) a pawnbroker;

(6) an insurance company;

(7) a seller of goods or services that finances the sale of such goods or services, other than a residential mortgage loan;

(8) any individual who offers or negotiates the terms of a residential mortgage loan secured by a dwelling that served as the individual's residence;

(9) lenders that conduct their lending activities, other than residential mortgage loan activities, through revolving loan funds, that are nonprofit organizations exempt from taxation under Section 501(c) of the Internal Revenue Code, and that register with the commissioner of economic development under 10 V.S.A. § 690a.

(10) persons who loan, other than residential mortgage loans, an aggregate of less than $50,000.00 in any one year at rates of interest of no more than 12 percent per annum;

(11) a seller who, pursuant to 9 V.S.A. § 2355(f)(1)(D), includes the amount paid or to be paid by the seller to discharge a security interest, lien interest, or lease interest on the traded-in motor vehicle in a motor vehicle retail installment sales contract, provided that the contract is purchased, assigned, or otherwise acquired by a sales finance company licensed pursuant to this title to purchase motor vehicle retail installment sales contracts or a depository institution;

(12)(A) a person making an unsecured commercial loan, which loan is expressly subordinate to the prior payment of all senior indebtedness of the commercial borrower regardless of whether such senior indebtedness exists at the time of the loan or arises thereafter. The loan may or may not include the right to convert all or a portion of the amount due on the loan to an equity interest in the commercial borrower;

(B) for purposes of this subdivision (12), "senior indebtedness" means:

(i) all indebtedness of the commercial borrower for money borrowed from depository institutions, trust companies, insurance companies, and licensed lenders, and any guarantee thereof; and

(ii) any other indebtedness of the commercial borrower that the lender and the commercial borrower agree shall constitute senior indebtedness;

(13) nonprofit organizations established under testamentary instruments, exempt from taxation under Section 501(c)(3) of the Internal Revenue Code, 26 U.S.C. § 501(c)(3), and which make loans for postsecondary educational costs to students and their parents, provided that the organizations provide annual accountings to the probate division of the superior court pursuant to 14 V.S.A. § 2324;

(14) any individual who offers or negotiates terms of a residential mortgage loan with or on behalf of an immediate family member of the individual.

(e) No mortgage loan originator license shall be required of:

(1) Registered mortgage loan originators, when acting for an entity described in subdivision 2200(19) of this chapter.

(2) Any individual who offers or negotiates terms of a residential mortgage loan with or on behalf of an immediate family member of the individual.

(3) Any individual who offers or negotiates terms of a residential mortgage loan secured by a dwelling that served as the individual's residence.

(4) A licensed attorney who negotiates the terms of a residential mortgage loan on behalf of a client as an ancillary matter to the attorney's representation of the client, unless the attorney is compensated by a lender, a mortgage broker, or other mortgage loan originator or by any agent of such lender, mortgage broker, or other mortgage loan originator.

(f) Independent contractor loan processors or underwriters. A loan processor or underwriter who is an independent contractor may not engage in the activities of a loan processor or underwriter unless such independent contractor loan processor or underwriter obtains and maintains a mortgage loan originator license. Each independent contractor loan processor or underwriter licensed as a mortgage loan originator must have and maintain a valid unique identifier issued by the Nationwide Mortgage Licensing System and Registry.

(g) This chapter shall not apply to commercial loans of $1,000,000.00 or more.
Vt. Stat. Ann. tit. 8, § 2201. Licenses required.(a) No person shall without first obtaining a license under this chapter from the commissioner:

(1) engage in the business of making loans of money, credit, goods or things in action and charge, contract for or receive on any such loan interest, a finance charge, discount or consideration therefore;

(2) act as a mortgage broker;

(3) act as a mortgage loan originator; or

(4) act as a sales finance company.

(b) Each licensed mortgage loan originator must register with and maintain a valid unique identifier with the Nationwide Mortgage Licensing System and Registry and must be either:

(1) an employee actively employed at a licensed location of, and supervised and sponsored by, only one licensed lender or licensed mortgage broker operating in this state;

(2) an individual sole proprietor who is also a licensed lender or licensed mortgage broker; or

(3) an employee engaged in loan modifications employed at a licensed location of, and supervised and sponsored by, only one third-party loan servicer licensed to operate in this state pursuant to chapter 85 of this title. For purposes of this subsection, "loan modification" means an adjustment or compromise of an existing residential mortgage loan. The term "loan modification" does not include a refinancing transaction.

(c) A person licensed pursuant to subdivision (a)(1) of this section may engage in mortgage brokerage and sales finance if such person informs the commissioner in advance that he or she intends to engage in sales finance and mortgage brokerage. Such person shall inform the commissioner of his or her intention on the original license application under section 2202 of this title, any renewal application under section 2209 of this title, or pursuant to section 2208 of this title, and shall pay the applicable fees required by subsection 2202(b) of this title for a mortgage broker license or sales finance company license.

(d) No lender license, mortgage broker license, or sales finance company license shall be required of:

(1) a state agency, political subdivision, or other public instrumentality of the state;

(2) a federal agency or other public instrumentality of the United States;

(3) a gas or electric utility subject to the jurisdiction of the public service board engaging in energy conservation or safety loans;

(4) a depository institution;

(5) a pawnbroker;

(6) an insurance company;

(7) a seller of goods or services that finances the sale of such goods or services, other than a residential mortgage loan;

(8) any individual who offers or negotiates the terms of a residential mortgage loan secured by a dwelling that served as the individual's residence;

(9) lenders that conduct their lending activities, other than residential mortgage loan activities, through revolving loan funds, that are nonprofit organizations exempt from taxation under Section 501(c) of the Internal Revenue Code, and that register with the commissioner of economic development under 10 V.S.A. § 690a.

(10) persons who loan, other than residential mortgage loans, an aggregate of less than $50,000.00 in any one year at rates of interest of no more than 12 percent per annum;

(11) a seller who, pursuant to 9 V.S.A. § 2355(f)(1)(D), includes the amount paid or to be paid by the seller to discharge a security interest, lien interest, or lease interest on the traded-in motor vehicle in a motor vehicle retail installment sales contract, provided that the contract is purchased, assigned, or otherwise acquired by a sales finance company licensed pursuant to this title to purchase motor vehicle retail installment sales contracts or a depository institution;

(12)(A) a person making an unsecured commercial loan, which loan is expressly subordinate to the prior payment of all senior indebtedness of the commercial borrower regardless of whether such senior indebtedness exists at the time of the loan or arises thereafter. The loan may or may not include the right to convert all or a portion of the amount due on the loan to an equity interest in the commercial borrower;

(B) for purposes of this subdivision (12), "senior indebtedness" means:

(i) all indebtedness of the commercial borrower for money borrowed from depository institutions, trust companies, insurance companies, and licensed lenders, and any guarantee thereof; and

(ii) any other indebtedness of the commercial borrower that the lender and the commercial borrower agree shall constitute senior indebtedness;

(13) nonprofit organizations established under testamentary instruments, exempt from taxation under Section 501(c)(3) of the Internal Revenue Code, 26 U.S.C. § 501(c)(3), and which make loans for postsecondary educational costs to students and their parents, provided that the organizations provide annual accountings to the probate division of the superior court pursuant to 14 V.S.A. § 2324;

(14) any individual who offers or negotiates terms of a residential mortgage loan with or on behalf of an immediate family member of the individual.

(e) No mortgage loan originator license shall be required of:

(1) Registered mortgage loan originators, when acting for an entity described in subdivision 2200(19) of this chapter.

(2) Any individual who offers or negotiates terms of a residential mortgage loan with or on behalf of an immediate family member of the individual.

(3) Any individual who offers or negotiates terms of a residential mortgage loan secured by a dwelling that served as the individual's residence.

(4) A licensed attorney who negotiates the terms of a residential mortgage loan on behalf of a client as an ancillary matter to the attorney's representation of the client, unless the attorney is compensated by a lender, a mortgage broker, or other mortgage loan originator or by any agent of such lender, mortgage broker, or other mortgage loan originator.

(f) Independent contractor loan processors or underwriters. A loan processor or underwriter who is an independent contractor may not engage in the activities of a loan processor or underwriter unless such independent contractor loan processor or underwriter obtains and maintains a mortgage loan originator license. Each independent contractor loan processor or underwriter licensed as a mortgage loan originator must have and maintain a valid unique identifier issued by the Nationwide Mortgage Licensing System and Registry.

(g) This chapter shall not apply to commercial loans of $1,000,000.00 or more.

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Vt. Stat. Ann. tit. 8, § 2226. Deceptive advertising.No licensee or other person shall advertise, print, display, publish, distribute, or broadcast or cause or permit to be advertised, printed, displayed, published, distributed, or broadcast, in any manner whatsoever any statement or representation with regard to the rates, terms, or conditions for the lending of money, credit, goods, or things in action which is false, misleading, or deceptive. The commissioner may order any person to desist from any conduct which the commissioner finds to be a violation of the foregoing provisions. Vt. Stat. Ann. tit. 8, § 2226. Deceptive advertising.No licensee or other person shall advertise, print, display, publish, distribute, or broadcast or cause or permit to be advertised, printed, displayed, published, distributed, or broadcast, in any manner whatsoever any statement or representation with regard to the rates, terms, or conditions for the lending of money, credit, goods, or things in action which is false, misleading, or deceptive. The commissioner may order any person to desist from any conduct which the commissioner finds to be a violation of the foregoing provisions.

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Vt. Stat. Ann. tit. 8, § 2241. Prohibited acts and practices.It is a violation of this chapter for a person or individual to:

(1) Directly or indirectly employ any scheme, device, or artifice to defraud or mislead borrowers or lenders or to defraud any person;

(2) Engage in any unfair or deceptive practice toward any person;

(3) Obtain property by fraud or misrepresentation;

(4) Solicit or enter into a contract with a borrower that provides in substance that the person or individual may earn a fee or commission through "best efforts" to obtain a loan even though no loan is actually obtained for the borrower;

(5) Solicit, advertise, or enter into a contract for specific interest rates, points, or other financing terms unless the terms are actually available at the time of soliciting, advertising, or contracting;

(6) Conduct any business covered by this chapter without holding a valid license as required under this chapter, or assist or aid and abet any person in the conduct of business under this chapter without a valid license as required under this chapter;

(7) Fail to make disclosures as required by this chapter and any other applicable state or federal law, including regulations thereunder;

(8) Fail to comply with this chapter or rules adopted under this chapter, or fail to comply with any orders or directives from the commissioner, or fail to comply with any other state or federal law, including the rules thereunder, applicable to any business authorized or conducted under this chapter;

(9) Make, in any manner, any false or deceptive statement or representation, including with regard to the rates, points, or other financing terms or conditions for a mortgage loan, or engage in bait and switch advertising;

(10) Negligently make any false statement or knowingly and willfully make any omission of material fact in connection with any information or reports filed with a governmental agency or the Nationwide Mortgage Licensing System and Registry or in connection with any investigation conducted by the commissioner or another governmental agency;

(11) Make any payment, threat, or promise, directly or indirectly, to any person for the purposes of influencing the independent judgment of the person in connection with a residential mortgage loan, or make any payment, threat, or promise, directly or indirectly, to any appraiser of a property, for the purposes of influencing the independent judgment of the appraiser with respect to the value of the property;

(12) Collect, charge, attempt to collect or charge, or use or propose any agreement purporting to collect or charge any fee prohibited by this chapter;

(13) Cause or require a borrower to obtain property insurance coverage in an amount that exceeds the replacement cost of the improvements as established by the property insurer;

(14) Fail to account truthfully for monies belonging to a party to a mortgage loan transaction.
Vt. Stat. Ann. tit. 8, § 2241. Prohibited acts and practices.It is a violation of this chapter for a person or individual to:

(1) Directly or indirectly employ any scheme, device, or artifice to defraud or mislead borrowers or lenders or to defraud any person;

(2) Engage in any unfair or deceptive practice toward any person;

(3) Obtain property by fraud or misrepresentation;

(4) Solicit or enter into a contract with a borrower that provides in substance that the person or individual may earn a fee or commission through "best efforts" to obtain a loan even though no loan is actually obtained for the borrower;

(5) Solicit, advertise, or enter into a contract for specific interest rates, points, or other financing terms unless the terms are actually available at the time of soliciting, advertising, or contracting;

(6) Conduct any business covered by this chapter without holding a valid license as required under this chapter, or assist or aid and abet any person in the conduct of business under this chapter without a valid license as required under this chapter;

(7) Fail to make disclosures as required by this chapter and any other applicable state or federal law, including regulations thereunder;

(8) Fail to comply with this chapter or rules adopted under this chapter, or fail to comply with any orders or directives from the commissioner, or fail to comply with any other state or federal law, including the rules thereunder, applicable to any business authorized or conducted under this chapter;

(9) Make, in any manner, any false or deceptive statement or representation, including with regard to the rates, points, or other financing terms or conditions for a mortgage loan, or engage in bait and switch advertising;

(10) Negligently make any false statement or knowingly and willfully make any omission of material fact in connection with any information or reports filed with a governmental agency or the Nationwide Mortgage Licensing System and Registry or in connection with any investigation conducted by the commissioner or another governmental agency;

(11) Make any payment, threat, or promise, directly or indirectly, to any person for the purposes of influencing the independent judgment of the person in connection with a residential mortgage loan, or make any payment, threat, or promise, directly or indirectly, to any appraiser of a property, for the purposes of influencing the independent judgment of the appraiser with respect to the value of the property;

(12) Collect, charge, attempt to collect or charge, or use or propose any agreement purporting to collect or charge any fee prohibited by this chapter;

(13) Cause or require a borrower to obtain property insurance coverage in an amount that exceeds the replacement cost of the improvements as established by the property insurer;

(14) Fail to account truthfully for monies belonging to a party to a mortgage loan transaction.

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Vt. Stat. Ann. tit. 8, § 2760b. Prohibited activities.(a) No person, partnership, association, corporation, or other entity, except a licensee, may make any representation, directly or indirectly, orally or in writing that he, she, or it is licensed under this chapter.

(b) No licensee shall advertise its services in any media, whether print or electronic, in any manner that may be false or deceptive. All such advertisements shall contain the name and office address of such entity, which shall conform to a name and address on record with the department and which shall indicate that the licensee is licensed by the department.

(c) No person or any other entity, other than a licensee, shall use the title "debt adjuster," "budget planner," "licensed debt adjuster," or "licensed budget planner" or the term "debt adjuster," "debt reduction," or "budget planning" in any public advertisement, business card, or letterhead.

(d) No licensee shall commingle monies received from debtors with any other funds associated with the operation of its business or with any funds associated with any other type of business; provided, however, that for the sole purpose of making a single payment to a creditor, a licensee may commingle monies received from debtors under contract with one or more of its affiliates authorized to engage in debt adjustment in another state.

(e) No licensee shall structure an agreement for the debtor that, at the conclusion of the agreement, would result in negative amortization of any of the debtor's obligations to any creditor.

(f) No licensee, or a director, manager, or officer of such licensee, or any immediate family member of such individual, or a controlling party of such licensee shall purchase any obligation of a debtor.

(g) No licensee, or a director, manager, or officer of such licensee, or any immediate family member of such individual, or a controlling party of such licensee shall lend money or provide credit to the debtor.

(h) No licensee, or a director, manager, or officer of such licensee, or any immediate family member of such individual, or a controlling party of such licensee shall obtain a mortgage or other security interest in property of the debtor.

(i) No licensee shall operate as a person or entity seeking payment of obligations on behalf of any creditors that are not receiving payments pursuant to a contract between a debtor and a licensee.

(j) No licensee shall execute any contract or agreement to be signed by the debtor unless the contract or agreement is fully completed, and the duration of any such contract shall be in conformance with any limitations specified pursuant to regulations of the commissioner.

(k) No licensee shall pay any bonus or other consideration to any person or entity for the referral of a debtor to its business, or accept or receive any bonus, commission, or other consideration for referring any debtor to any person or entity for any reason; provided, however, that nothing herein shall prohibit the payment of rebates from creditors to licensees.

( l) No licensee shall disclose or threaten to disclose information concerning the existence of a debt or any other conduct which could coerce payment of the debt of a debtor with whom it has a contract.

(m) No licensee shall use a communication that simulates in any manner a legal or judicial process, or which gives the false appearance of being authorized, issued, or approved by a government, a governmental agency, or an attorney-at-law.

(n) No licensee, or a director, a manager, or an officer of such licensee, or any immediate family member of such individual, or a controlling party of such licensee, shall be a director, a manager, an officer, an owner, or a controlling party of any creditor or a subsidiary of any such creditor, that is receiving or will receive payments from the licensee on behalf of a debtor with whom the licensee has contracted, without the express written consent of the commissioner.
Vt. Stat. Ann. tit. 8, § 2760b. Prohibited activities.(a) No person, partnership, association, corporation, or other entity, except a licensee, may make any representation, directly or indirectly, orally or in writing that he, she, or it is licensed under this chapter.

(b) No licensee shall advertise its services in any media, whether print or electronic, in any manner that may be false or deceptive. All such advertisements shall contain the name and office address of such entity, which shall conform to a name and address on record with the department and which shall indicate that the licensee is licensed by the department.

(c) No person or any other entity, other than a licensee, shall use the title "debt adjuster," "budget planner," "licensed debt adjuster," or "licensed budget planner" or the term "debt adjuster," "debt reduction," or "budget planning" in any public advertisement, business card, or letterhead.

(d) No licensee shall commingle monies received from debtors with any other funds associated with the operation of its business or with any funds associated with any other type of business; provided, however, that for the sole purpose of making a single payment to a creditor, a licensee may commingle monies received from debtors under contract with one or more of its affiliates authorized to engage in debt adjustment in another state.

(e) No licensee shall structure an agreement for the debtor that, at the conclusion of the agreement, would result in negative amortization of any of the debtor's obligations to any creditor.

(f) No licensee, or a director, manager, or officer of such licensee, or any immediate family member of such individual, or a controlling party of such licensee shall purchase any obligation of a debtor.

(g) No licensee, or a director, manager, or officer of such licensee, or any immediate family member of such individual, or a controlling party of such licensee shall lend money or provide credit to the debtor.

(h) No licensee, or a director, manager, or officer of such licensee, or any immediate family member of such individual, or a controlling party of such licensee shall obtain a mortgage or other security interest in property of the debtor.

(i) No licensee shall operate as a person or entity seeking payment of obligations on behalf of any creditors that are not receiving payments pursuant to a contract between a debtor and a licensee.

(j) No licensee shall execute any contract or agreement to be signed by the debtor unless the contract or agreement is fully completed, and the duration of any such contract shall be in conformance with any limitations specified pursuant to regulations of the commissioner.

(k) No licensee shall pay any bonus or other consideration to any person or entity for the referral of a debtor to its business, or accept or receive any bonus, commission, or other consideration for referring any debtor to any person or entity for any reason; provided, however, that nothing herein shall prohibit the payment of rebates from creditors to licensees.

( l) No licensee shall disclose or threaten to disclose information concerning the existence of a debt or any other conduct which could coerce payment of the debt of a debtor with whom it has a contract.

(m) No licensee shall use a communication that simulates in any manner a legal or judicial process, or which gives the false appearance of being authorized, issued, or approved by a government, a governmental agency, or an attorney-at-law.

(n) No licensee, or a director, a manager, or an officer of such licensee, or any immediate family member of such individual, or a controlling party of such licensee, shall be a director, a manager, an officer, an owner, or a controlling party of any creditor or a subsidiary of any such creditor, that is receiving or will receive payments from the licensee on behalf of a debtor with whom the licensee has contracted, without the express written consent of the commissioner.

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Vt. Stat. Ann. tit. 8, § 2922. Prohibited acts and practices.(a) It is a violation of this chapter for a person to:

(1) Directly or indirectly employ any scheme, device, or artifice to defraud or mislead borrowers or lenders or to defraud any person.

(2) Engage in any unfair or deceptive practice toward any person.

(3) Obtain property by fraud or misrepresentation.

(4) Use any unfair or unconscionable means in servicing a loan.

(5) Knowingly misapply or recklessly apply loan payments to the outstanding balance of a loan.

(6) Knowingly misapply or recklessly apply payments to escrow accounts.

(7) Require the unnecessary forced placement of insurance, when adequate insurance is currently in place.

(8) Fail to provide loan payoff information within the time period set forth in 27 V.S.A. § 464.

(9) Charge excessive or unreasonable fees to provide loan payoff information.

(10) Fail to manage and maintain escrow accounts in accordance with section 10404 of this title.

(11) Knowingly or recklessly provide inaccurate information to a credit bureau, thereby harming a consumer's creditworthiness.

(12) Fail to report both the favorable and unfavorable payment history of the consumer to a nationally recognized consumer credit bureau at least annually if the servicer regularly reports information to a credit bureau.

(13) Collect private mortgage insurance beyond the date for which private mortgage insurance is no longer required.

(14) Knowingly or recklessly facilitate the illegal foreclosure of real property collateral.

(15) Knowingly or recklessly facilitate the illegal repossession of chattel collateral.

(16) Fail to respond to consumer complaints in a timely manner.

(17) Conduct any business covered by this chapter without holding a valid license as required under this chapter, or assist or aid and abet any person in the conduct of business under this chapter without a valid license as required under this chapter.

(18) Fail to comply with any federal or state law, rule, or other legally binding authority relating to the evaluation of loans for modification purposes or the modification of loans.

(19) Fail to comply with this chapter or rules adopted under this chapter, or fail to comply with any orders or directives from the commissioner, or fail to comply with any other state or federal law, including the rules thereunder, applicable to any business authorized or conducted under this chapter.

(b) A violation of this section is an unfair and deceptive act or practice under 9 V.S.A. § 2453, provided that the commissioner's determinations concerning the interpretation and administration of the provisions of this chapter and any rules adopted thereunder shall carry a presumption of validity. Prior to initiating an action for a violation of this chapter, the attorney general shall consult with the commissioner regarding the proposed action.
Vt. Stat. Ann. tit. 8, § 2922. Prohibited acts and practices.(a) It is a violation of this chapter for a person to:

(1) Directly or indirectly employ any scheme, device, or artifice to defraud or mislead borrowers or lenders or to defraud any person.

(2) Engage in any unfair or deceptive practice toward any person.

(3) Obtain property by fraud or misrepresentation.

(4) Use any unfair or unconscionable means in servicing a loan.

(5) Knowingly misapply or recklessly apply loan payments to the outstanding balance of a loan.

(6) Knowingly misapply or recklessly apply payments to escrow accounts.

(7) Require the unnecessary forced placement of insurance, when adequate insurance is currently in place.

(8) Fail to provide loan payoff information within the time period set forth in 27 V.S.A. § 464.

(9) Charge excessive or unreasonable fees to provide loan payoff information.

(10) Fail to manage and maintain escrow accounts in accordance with section 10404 of this title.

(11) Knowingly or recklessly provide inaccurate information to a credit bureau, thereby harming a consumer's creditworthiness.

(12) Fail to report both the favorable and unfavorable payment history of the consumer to a nationally recognized consumer credit bureau at least annually if the servicer regularly reports information to a credit bureau.

(13) Collect private mortgage insurance beyond the date for which private mortgage insurance is no longer required.

(14) Knowingly or recklessly facilitate the illegal foreclosure of real property collateral.

(15) Knowingly or recklessly facilitate the illegal repossession of chattel collateral.

(16) Fail to respond to consumer complaints in a timely manner.

(17) Conduct any business covered by this chapter without holding a valid license as required under this chapter, or assist or aid and abet any person in the conduct of business under this chapter without a valid license as required under this chapter.

(18) Fail to comply with any federal or state law, rule, or other legally binding authority relating to the evaluation of loans for modification purposes or the modification of loans.

(19) Fail to comply with this chapter or rules adopted under this chapter, or fail to comply with any orders or directives from the commissioner, or fail to comply with any other state or federal law, including the rules thereunder, applicable to any business authorized or conducted under this chapter.

(b) A violation of this section is an unfair and deceptive act or practice under 9 V.S.A. § 2453, provided that the commissioner's determinations concerning the interpretation and administration of the provisions of this chapter and any rules adopted thereunder shall carry a presumption of validity. Prior to initiating an action for a violation of this chapter, the attorney general shall consult with the commissioner regarding the proposed action.

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Vt. Stat. Ann. tit. 8, § 3301. Purposes.(a) Subject to the additional or varied requirements stated in this subchapter, a corporation may be formed pursuant to the general corporation law to do any and all insurance and reinsurance comprised in any one of the following numbered subdivisions:

(1) "Life insurance" which is insurance on human lives. The business of life insurance includes also the granting of endowment benefits, additional benefits in event of death or dismemberment by accident or accidental means, additional benefits in event of the insured's disability and optional modes of settlement of proceeds of life insurance. Life insurance does not include workers' compensation coverages.

(2) "Health insurance" which is insurance of human beings against bodily injury, disablement, or death by accident or accidental means, or the expense thereof, or against disablement or expense resulting from sickness, and every insurance appertaining thereto. Health insurance does not include workers' compensation coverages.

(3) "Casualty insurance" which includes:

(A) "Vehicle insurance." Insurance against loss of or damage to any land vehicle or aircraft or any draft or riding animal or to property while contained therein or thereon or being loaded or unloaded therein or therefrom, from any hazard or cause, and against any loss, liability or expense resulting from or incidental to ownership, maintenance or use of any such vehicle, aircraft, or animal; and provision of medical, hospital, surgical, disability benefits to injured persons and funeral and death benefits to dependents, beneficiaries, or personal representatives of persons killed, irrespective of legal liability of the insured, when issued as an incidental coverage with or supplemental to insurance on the vehicle, aircraft or animal.

(B) "Automobile guaranty." Insurance of the mechanical condition or freedom from defective or worn parts or equipment, of motor vehicles.

(C) "Liability insurance." Insurance against legal liability for the death, injury, or disability of any human being, or for damage to property; and provision of medical, hospital, surgical, disability benefits to injured persons and funeral and death benefits to dependents, beneficiaries or personal representatives of persons killed, irrespective of legal liability of the insured, when issued as an incidental coverage with or supplemental to liability insurance.

(D) "Workers' compensation." Insurance of the obligations accepted by, imposed upon, or assumed by employers under law for death, disablement, or injury of employees.

(E) "Burglary and theft." Insurance against loss or damage by burglary, theft, larceny, robbery, forgery, fraud, vandalism, malicious mischief, confiscation, or wrongful conversion, disposal or concealment, or from any attempt at any of the foregoing; including supplemental coverage for medical, hospital, surgical, and funeral expense incurred by the named insured or any other person as a result of bodily injury during the commission of a burglary, robbery, or theft by another; also insurance against loss of or damage to moneys, coins, bullion, securities, notes, drafts, acceptances, or any other valuable papers and documents, resulting from any cause.

(F) "Personal property floater." Insurance upon personal effects against loss or damage from any cause, under a personal property floater.

(G) "Glass." Insurance against loss or damage to glass, including its lettering, ornamentation, and fittings.

(H) "Boiler and machinery." Insurance against any liability and loss or damage to property or interest resulting from accidents to or explosions of boilers, pipes, pressure containers, machinery, or apparatus, and to make inspection of and issue certificates of inspection upon boilers, machinery, and apparatus of any kind, whether or not insured.

(J) 1 "Leakage and fire extinguishing equipment." Insurance against loss or damage to any property or interest caused by the breakage or leakage of sprinklers, hoses, pumps, and other fire extinguishing equipment or apparatus, water pipes or containers, or by water entering through leaks or openings in buildings, and insurance against loss or damage to such sprinklers, hoses, pumps, and other fire extinguishing equipment or apparatus.

1 So in original. Section enacted without subdiv. (I).

(K) "Credit." Insurance against loss or damage resulting from failure of debtors to pay their obligations to the insured.

(L) "Malpractice." Insurance against legal liability of the insured, and against loss, damage, or expense incidental to a claim of such liability, and including medical, hospital, surgical, and funeral benefits to injured persons, irrespective of legal liability of the insured, arising out of the death, injury or disablement of any person or arising out of damage to the economic interest of any person, as the result of negligence in rendering expert, fiduciary, or professional service.

(M) "Congenital defects." Insurance against congenital defects in human beings.

(N) "Livestock insurance." Insurance against loss or damage to livestock, and services of a veterinary for such animals.

(O) "Elevator." Insurance against loss of or damage to any property of the insured, resulting from the ownership, maintenance or use of elevators, except loss or damage by fire, and to make inspections of and issue certificates of inspection upon, elevators.

(P) "Entertainments." Insurance indemnifying the producer of any motion picture, television, radio, theatrical, sport, spectacle, entertainment, or similar production, event, or exhibition against loss from interruption, postponement, or cancellation thereof due to death, accidental injury, or sickness of performers, participants, directors, or other principals.

(Q) "Failure to file certain instruments." Insurance against loss resulting from failure to file or record written instruments affecting the title of or creating a lien upon personal property.

(R) "Miscellaneous." Insurance against any other kind of loss, damage, or liability properly a subject of insurance and not within any other kind of insurance as defined in this chapter, if such insurance is not disapproved by the commissioner as being contrary to law or public policy; provision of medical, hospital, surgical, and funeral benefits, and of coverage against accidental death or injury, as incidental to and part of other insurance as stated under subdivisions (3)(A), (C), (E), (H), (L), and (O) shall for all purposes be deemed to be the same kind of insurance to which it is so incidental, and shall not be subject to provisions of this code applicable to life or health insurances.

(4) "Marine and transportation insurance" which includes insurance against any and all kinds of loss or damage to:

(A) Vessels, craft, aircraft, cars, automobiles and vehicles of every kind, as well as all goods, freights, cargoes, merchandise, effects, disbursements, profits, money, bullion, precious stones, securities, choses in action, evidences of debt, valuable papers, bottomry and respondentia interests and all other kinds of property and interests therein, in respect to, appertaining to or in connection with any and all risks or perils of navigation, transit, or transportation, including war risks, on or under any seas or other waters, on land or in the air, or while being assembled, packed, crated, baled, compressed or similarly prepared for shipment or while awaiting shipment or during delays, storage, transshipment, or reshipment incident thereto, including marine builder's risks and all personal property floater risks.

(B) A person or to property in connection with or appertaining to a marine, inland marine, transit or transportation insurance, including liability for loss of or damage to either, arising out of or in connection with the construction, repair, operation, maintenance or use of the subject matter of the insurance (but not including life insurance or surety bonds or insurance against loss by reason of bodily injury to the person arising out of the ownership, maintenance or use of automobiles).

(C) Precious stones, jewels, jewelry, gold, silver and other precious metals, whether used in business or trade or otherwise and whether in the course of transportation or otherwise.

(D) Bridges, tunnels and other instrumentalities of transportation and communication (excluding buildings, their furniture and furnishings, fixed contents and supplies held in storage) unless fire, tornado, sprinkler leakage, hail, explosion, earthquake, riot and/or civil commotion are the only hazards to be covered; piers, wharves, docks and slips, excluding the risks of fire, tornado, sprinkler leakage, hail, explosion, earthquake, riot and/or civil commotion; other aids to navigation and transportation, including dry docks and marine railways.

(5) "Marine protection and indemnity insurance" which is insurance against, or against legal liability of the insured for, loss, damage or expense arising out of, or incident to, the ownership, operation, chartering, maintenance, use, repair, or construction of a vessel, craft or instrumentality in use in ocean or inland waterways, including liability of the insured for personal injury, illness or death or for loss of or damage to the property of another person.

(6) "Wet marine and transportation insurance" which is that part of marine and transportation insurance that includes only:

(A) Insurance upon vessels, crafts, hulls and of interests therein or with relation thereto.

(B) Insurance of marine builder's risks, marine war risks and contracts or marine protection and indemnity insurance.

(C) Insurance of freights and disbursements pertaining to a subject of insurance coming within this section.

(D) Insurance of personal property and interests therein, in the course of exportation from or importation into any country, and in the course of transportation coastwise or on inland waters, including transportation by land, water, or air from point of origin to final destination, in respect to, appertaining to or in connection with, any and all risks or perils of navigation, transit or transportation, and while being prepared for and while awaiting shipment, and during delays, storage, transshipment or reshipment incident thereto.

(7) "Property insurance" which is insurance on real or personal property of every kind and of every interest therein, whether on land, water, or in the air, against loss or damage from any and all hazard or cause, and against loss consequential upon such loss or damage, other than noncontractual legal liability for such loss or damage. Property insurance does not include title insurance, as defined in subdivision (9).

(8) "Surety insurance" which includes:

(A) "Fidelity insurance" which is insurance guaranteeing the fidelity of persons holding positions of public or private trust.

(B) Insurance or guaranty of the obligations of employers under workers' compensation laws.

(C) Insurance guaranteeing the performance of contracts, other than insurance policies, and guaranteeing and executing bonds, undertakings, and contracts of suretyship.

(D) Insurance indemnifying banks, bankers, brokers, financial or moneyed corporations or associations against loss, resulting from any cause, of bills of exchange, notes, bonds, securities, evidences of debt, deeds, mortgages, warehouse receipts or other valuable papers, documents, money, precious metals and articles made therefrom, jewelry, watches, necklaces, bracelets, gems, precious and semiprecious stones, including any loss while the same are being transported in armored motor vehicles, or by messenger, but not including any other risks of transportation or navigation; also insurance against loss or damage to such an insured's premises or to his furniture, furnishings, fixtures, equipment, safes, and vaults therein, caused by burglary, robbery, theft, vandalism or malicious mischief, or any attempt thereat.

(9) "Title insurance" which is the certification or guarantee of title or ownership, or insurance of owners of property or others having an interest therein or liens or encumbrances thereon, against loss by encumbrance, or defective titles, or invalidity, or adverse claim to title. A title insurer may also insure the identity, due execution, and validity of any note or bond secured by mortgage or deed of trust and the identity, due execution, validity and recording of any such mortgage or deed of trust. This definition shall not be deemed to apply to the business of preparing and issuing abstracts of title to or ownership of property or certifying to the validity of documents relative to such titles.

(10) "Multiple line insurance" which is insurance combining on a mandatory basis in a single policy coverage coming within two or more of the kinds of insurance as defined in this chapter, other than title insurance, life insurance, or the granting of annuities, and for either a divisible or an indivisible rate or premium.

(b) It is intended that certain insurance coverages may come within the definitions of two or more kinds of insurance as defined in this chapter, and the inclusion of such coverage within one definition shall not exclude it as to any other kind of insurance within the definition of which such coverage is likewise reasonably includible. Unless the context requires otherwise, a corporation engaged in the business described in subdivision (1) may also do any and all insurance business comprised in subdivision (2) relating to health insurance and subdivision (3)(D) relating to workers' compensation. A corporation engaged in business comprised in any subdivision except subdivision (1) may do any business comprised in any of the other subdivisions except subdivision (1), provided the requirements of law are complied with, and provided further, that a company not engaged in writing a particular class of insurance on July 1, 1968, shall not write insurance of such class thereafter without a

pproval of the commissioner after he is satisfied that such insurance will be soundly underwritten on the strength of adequate capital and reserves considering the risks insured against and the experience, resources and responsibility of the underwriter. In addition to any power to engage in any other kind of business besides an insurance business that may be specifically conferred by this part, an insurance company organized under this section may engage in other kinds of business to the extent necessarily or reasonably incidental to the kind or kinds of insurance business which it is authorized to do under this section.

(c) Nothing in this section shall authorize a company to issue a policy of title insurance in this state until the applicant therefor has been notified in writing by such company of all defects in title which will be excluded from coverage under the prospective policy. Such notice shall set forth in descriptive terms the nature of such excluded defects. Upon receipt of such notice, the applicant shall have the option of cancelling his application without any liability therefor to said company.

(d) Any corporation or organization which on July 1, 1968 had been organized and was existing under a special charter granted by the General Assembly prior hereto, or had been organized and was existing under insurance laws in effect prior hereto, may continue to do a business of insurance specified in this section and authorized by its charter under the continued supervision of the commissioner.

(e) The provisions of this title relating to the regulation of the business of insurance shall not apply to activities engaged in by ambulance services and first responder services for which they are licensed by the board of health pursuant to chapter 71 of Title 24.
(a) Subject to the additional or varied requirements stated in this subchapter, a corporation may be formed pursuant to the general corporation law to do any and all insurance and reinsurance comprised in any one of the following numbered subdivisions:

(1) "Life insurance" which is insurance on human lives. The business of life insurance includes also the granting of endowment benefits, additional benefits in event of death or dismemberment by accident or accidental means, additional benefits in event of the insured's disability and optional modes of settlement of proceeds of life insurance. Life insurance does not include workers' compensation coverages.

(2) "Health insurance" which is insurance of human beings against bodily injury, disablement, or death by accident or accidental means, or the expense thereof, or against disablement or expense resulting from sickness, and every insurance appertaining thereto. Health insurance does not include workers' compensation coverages.

(3) "Casualty insurance" which includes:

(A) "Vehicle insurance." Insurance against loss of or damage to any land vehicle or aircraft or any draft or riding animal or to property while contained therein or thereon or being loaded or unloaded therein or therefrom, from any hazard or cause, and against any loss, liability or expense resulting from or incidental to ownership, maintenance or use of any such vehicle, aircraft, or animal; and provision of medical, hospital, surgical, disability benefits to injured persons and funeral and death benefits to dependents, beneficiaries, or personal representatives of persons killed, irrespective of legal liability of the insured, when issued as an incidental coverage with or supplemental to insurance on the vehicle, aircraft or animal.

(B) "Automobile guaranty." Insurance of the mechanical condition or freedom from defective or worn parts or equipment, of motor vehicles.

(C) "Liability insurance." Insurance against legal liability for the death, injury, or disability of any human being, or for damage to property; and provision of medical, hospital, surgical, disability benefits to injured persons and funeral and death benefits to dependents, beneficiaries or personal representatives of persons killed, irrespective of legal liability of the insured, when issued as an incidental coverage with or supplemental to liability insurance.

(D) "Workers' compensation." Insurance of the obligations accepted by, imposed upon, or assumed by employers under law for death, disablement, or injury of employees.

(E) "Burglary and theft." Insurance against loss or damage by burglary, theft, larceny, robbery, forgery, fraud, vandalism, malicious mischief, confiscation, or wrongful conversion, disposal or concealment, or from any attempt at any of the foregoing; including supplemental coverage for medical, hospital, surgical, and funeral expense incurred by the named insured or any other person as a result of bodily injury during the commission of a burglary, robbery, or theft by another; also insurance against loss of or damage to moneys, coins, bullion, securities, notes, drafts, acceptances, or any other valuable papers and documents, resulting from any cause.

(F) "Personal property floater." Insurance upon personal effects against loss or damage from any cause, under a personal property floater.

(G) "Glass." Insurance against loss or damage to glass, including its lettering, ornamentation, and fittings.

(H) "Boiler and machinery." Insurance against any liability and loss or damage to property or interest resulting from accidents to or explosions of boilers, pipes, pressure containers, machinery, or apparatus, and to make inspection of and issue certificates of inspection upon boilers, machinery, and apparatus of any kind, whether or not insured.

(J) 1 "Leakage and fire extinguishing equipment." Insurance against loss or damage to any property or interest caused by the breakage or leakage of sprinklers, hoses, pumps, and other fire extinguishing equipment or apparatus, water pipes or containers, or by water entering through leaks or openings in buildings, and insurance against loss or damage to such sprinklers, hoses, pumps, and other fire extinguishing equipment or apparatus.

1 So in original. Section enacted without subdiv. (I).

(K) "Credit." Insurance against loss or damage resulting from failure of debtors to pay their obligations to the insured.

(L) "Malpractice." Insurance against legal liability of the insured, and against loss, damage, or expense incidental to a claim of such liability, and including medical, hospital, surgical, and funeral benefits to injured persons, irrespective of legal liability of the insured, arising out of the death, injury or disablement of any person or arising out of damage to the economic interest of any person, as the result of negligence in rendering expert, fiduciary, or professional service.

(M) "Congenital defects." Insurance against congenital defects in human beings.

(N) "Livestock insurance." Insurance against loss or damage to livestock, and services of a veterinary for such animals.

(O) "Elevator." Insurance against loss of or damage to any property of the insured, resulting from the ownership, maintenance or use of elevators, except loss or damage by fire, and to make inspections of and issue certificates of inspection upon, elevators.

(P) "Entertainments." Insurance indemnifying the producer of any motion picture, television, radio, theatrical, sport, spectacle, entertainment, or similar production, event, or exhibition against loss from interruption, postponement, or cancellation thereof due to death, accidental injury, or sickness of performers, participants, directors, or other principals.

(Q) "Failure to file certain instruments." Insurance against loss resulting from failure to file or record written instruments affecting the title of or creating a lien upon personal property.

(R) "Miscellaneous." Insurance against any other kind of loss, damage, or liability properly a subject of insurance and not within any other kind of insurance as defined in this chapter, if such insurance is not disapproved by the commissioner as being contrary to law or public policy; provision of medical, hospital, surgical, and funeral benefits, and of coverage against accidental death or injury, as incidental to and part of other insurance as stated under subdivisions (3)(A), (C), (E), (H), (L), and (O) shall for all purposes be deemed to be the same kind of insurance to which it is so incidental, and shall not be subject to provisions of this code applicable to life or health insurances.

(4) "Marine and transportation insurance" which includes insurance against any and all kinds of loss or damage to:

(A) Vessels, craft, aircraft, cars, automobiles and vehicles of every kind, as well as all goods, freights, cargoes, merchandise, effects, disbursements, profits, money, bullion, precious stones, securities, choses in action, evidences of debt, valuable papers, bottomry and respondentia interests and all other kinds of property and interests therein, in respect to, appertaining to or in connection with any and all risks or perils of navigation, transit, or transportation, including war risks, on or under any seas or other waters, on land or in the air, or while being assembled, packed, crated, baled, compressed or similarly prepared for shipment or while awaiting shipment or during delays, storage, transshipment, or reshipment incident thereto, including marine builder's risks and all personal property floater risks.

(B) A person or to property in connection with or appertaining to a marine, inland marine, transit or transportation insurance, including liability for loss of or damage to either, arising out of or in connection with the construction, repair, operation, maintenance or use of the subject matter of the insurance (but not including life insurance or surety bonds or insurance against loss by reason of bodily injury to the person arising out of the ownership, maintenance or use of automobiles).

(C) Precious stones, jewels, jewelry, gold, silver and other precious metals, whether used in business or trade or otherwise and whether in the course of transportation or otherwise.

(D) Bridges, tunnels and other instrumentalities of transportation and communication (excluding buildings, their furniture and furnishings, fixed contents and supplies held in storage) unless fire, tornado, sprinkler leakage, hail, explosion, earthquake, riot and/or civil commotion are the only hazards to be covered; piers, wharves, docks and slips, excluding the risks of fire, tornado, sprinkler leakage, hail, explosion, earthquake, riot and/or civil commotion; other aids to navigation and transportation, including dry docks and marine railways.

(5) "Marine protection and indemnity insurance" which is insurance against, or against legal liability of the insured for, loss, damage or expense arising out of, or incident to, the ownership, operation, chartering, maintenance, use, repair, or construction of a vessel, craft or instrumentality in use in ocean or inland waterways, including liability of the insured for personal injury, illness or death or for loss of or damage to the property of another person.

(6) "Wet marine and transportation insurance" which is that part of marine and transportation insurance that includes only:

(A) Insurance upon vessels, crafts, hulls and of interests therein or with relation thereto.

(B) Insurance of marine builder's risks, marine war risks and contracts or marine protection and indemnity insurance.

(C) Insurance of freights and disbursements pertaining to a subject of insurance coming within this section.

(D) Insurance of personal property and interests therein, in the course of exportation from or importation into any country, and in the course of transportation coastwise or on inland waters, including transportation by land, water, or air from point of origin to final destination, in respect to, appertaining to or in connection with, any and all risks or perils of navigation, transit or transportation, and while being prepared for and while awaiting shipment, and during delays, storage, transshipment or reshipment incident thereto.

(7) "Property insurance" which is insurance on real or personal property of every kind and of every interest therein, whether on land, water, or in the air, against loss or damage from any and all hazard or cause, and against loss consequential upon such loss or damage, other than noncontractual legal liability for such loss or damage. Property insurance does not include title insurance, as defined in subdivision (9).

(8) "Surety insurance" which includes:

(A) "Fidelity insurance" which is insurance guaranteeing the fidelity of persons holding positions of public or private trust.

(B) Insurance or guaranty of the obligations of employers under workers' compensation laws.

(C) Insurance guaranteeing the performance of contracts, other than insurance policies, and guaranteeing and executing bonds, undertakings, and contracts of suretyship.

(D) Insurance indemnifying banks, bankers, brokers, financial or moneyed corporations or associations against loss, resulting from any cause, of bills of exchange, notes, bonds, securities, evidences of debt, deeds, mortgages, warehouse receipts or other valuable papers, documents, money, precious metals and articles made therefrom, jewelry, watches, necklaces, bracelets, gems, precious and semiprecious stones, including any loss while the same are being transported in armored motor vehicles, or by messenger, but not including any other risks of transportation or navigation; also insurance against loss or damage to such an insured's premises or to his furniture, furnishings, fixtures, equipment, safes, and vaults therein, caused by burglary, robbery, theft, vandalism or malicious mischief, or any attempt thereat.

(9) "Title insurance" which is the certification or guarantee of title or ownership, or insurance of owners of property or others having an interest therein or liens or encumbrances thereon, against loss by encumbrance, or defective titles, or invalidity, or adverse claim to title. A title insurer may also insure the identity, due execution, and validity of any note or bond secured by mortgage or deed of trust and the identity, due execution, validity and recording of any such mortgage or deed of trust. This definition shall not be deemed to apply to the business of preparing and issuing abstracts of title to or ownership of property or certifying to the validity of documents relative to such titles.

(10) "Multiple line insurance" which is insurance combining on a mandatory basis in a single policy coverage coming within two or more of the kinds of insurance as defined in this chapter, other than title insurance, life insurance, or the granting of annuities, and for either a divisible or an indivisible rate or premium.

(b) It is intended that certain insurance coverages may come within the definitions of two or more kinds of insurance as defined in this chapter, and the inclusion of such coverage within one definition shall not exclude it as to any other kind of insurance within the definition of which such coverage is likewise reasonably includible. Unless the context requires otherwise, a corporation engaged in the business described in subdivision (1) may also do any and all insurance business comprised in subdivision (2) relating to health insurance and subdivision (3)(D) relating to workers' compensation. A corporation engaged in business comprised in any subdivision except subdivision (1) may do any business comprised in any of the other subdivisions except subdivision (1), provided the requirements of law are complied with, and provided further, that a company not engaged in writing a particular class of insurance on July 1, 1968, shall not write insurance of such class thereafter without a

pproval of the commissioner after he is satisfied that such insurance will be soundly underwritten on the strength of adequate capital and reserves considering the risks insured against and the experience, resources and responsibility of the underwriter. In addition to any power to engage in any other kind of business besides an insurance business that may be specifically conferred by this part, an insurance company organized under this section may engage in other kinds of business to the extent necessarily or reasonably incidental to the kind or kinds of insurance business which it is authorized to do under this section.

(c) Nothing in this section shall authorize a company to issue a policy of title insurance in this state until the applicant therefor has been notified in writing by such company of all defects in title which will be excluded from coverage under the prospective policy. Such notice shall set forth in descriptive terms the nature of such excluded defects. Upon receipt of such notice, the applicant shall have the option of cancelling his application without any liability therefor to said company.

(d) Any corporation or organization which on July 1, 1968 had been organized and was existing under a special charter granted by the General Assembly prior hereto, or had been organized and was existing under insurance laws in effect prior hereto, may continue to do a business of insurance specified in this section and authorized by its charter under the continued supervision of the commissioner.

(e) The provisions of this title relating to the regulation of the business of insurance shall not apply to activities engaged in by ambulance services and first responder services for which they are licensed by the board of health pursuant to chapter 71 of Title 24.
Vt. Stat. Ann. tit. 8, § 3301. Purposes.(a) Subject to the additional or varied requirements stated in this subchapter, a corporation may be formed pursuant to the general corporation law to do any and all insurance and reinsurance comprised in any one of the following numbered subdivisions:

(1) "Life insurance" which is insurance on human lives. The business of life insurance includes also the granting of endowment benefits, additional benefits in event of death or dismemberment by accident or accidental means, additional benefits in event of the insured's disability and optional modes of settlement of proceeds of life insurance. Life insurance does not include workers' compensation coverages.

(2) "Health insurance" which is insurance of human beings against bodily injury, disablement, or death by accident or accidental means, or the expense thereof, or against disablement or expense resulting from sickness, and every insurance appertaining thereto. Health insurance does not include workers' compensation coverages.

(3) "Casualty insurance" which includes:

(A) "Vehicle insurance." Insurance against loss of or damage to any land vehicle or aircraft or any draft or riding animal or to property while contained therein or thereon or being loaded or unloaded therein or therefrom, from any hazard or cause, and against any loss, liability or expense resulting from or incidental to ownership, maintenance or use of any such vehicle, aircraft, or animal; and provision of medical, hospital, surgical, disability benefits to injured persons and funeral and death benefits to dependents, beneficiaries, or personal representatives of persons killed, irrespective of legal liability of the insured, when issued as an incidental coverage with or supplemental to insurance on the vehicle, aircraft or animal.

(B) "Automobile guaranty." Insurance of the mechanical condition or freedom from defective or worn parts or equipment, of motor vehicles.

(C) "Liability insurance." Insurance against legal liability for the death, injury, or disability of any human being, or for damage to property; and provision of medical, hospital, surgical, disability benefits to injured persons and funeral and death benefits to dependents, beneficiaries or personal representatives of persons killed, irrespective of legal liability of the insured, when issued as an incidental coverage with or supplemental to liability insurance.

(D) "Workers' compensation." Insurance of the obligations accepted by, imposed upon, or assumed by employers under law for death, disablement, or injury of employees.

(E) "Burglary and theft." Insurance against loss or damage by burglary, theft, larceny, robbery, forgery, fraud, vandalism, malicious mischief, confiscation, or wrongful conversion, disposal or concealment, or from any attempt at any of the foregoing; including supplemental coverage for medical, hospital, surgical, and funeral expense incurred by the named insured or any other person as a result of bodily injury during the commission of a burglary, robbery, or theft by another; also insurance against loss of or damage to moneys, coins, bullion, securities, notes, drafts, acceptances, or any other valuable papers and documents, resulting from any cause.

(F) "Personal property floater." Insurance upon personal effects against loss or damage from any cause, under a personal property floater.

(G) "Glass." Insurance against loss or damage to glass, including its lettering, ornamentation, and fittings.

(H) "Boiler and machinery." Insurance against any liability and loss or damage to property or interest resulting from accidents to or explosions of boilers, pipes, pressure containers, machinery, or apparatus, and to make inspection of and issue certificates of inspection upon boilers, machinery, and apparatus of any kind, whether or not insured.

(J) 1 "Leakage and fire extinguishing equipment." Insurance against loss or damage to any property or interest caused by the breakage or leakage of sprinklers, hoses, pumps, and other fire extinguishing equipment or apparatus, water pipes or containers, or by water entering through leaks or openings in buildings, and insurance against loss or damage to such sprinklers, hoses, pumps, and other fire extinguishing equipment or apparatus.

1 So in original. Section enacted without subdiv. (I).

(K) "Credit." Insurance against loss or damage resulting from failure of debtors to pay their obligations to the insured.

(L) "Malpractice." Insurance against legal liability of the insured, and against loss, damage, or expense incidental to a claim of such liability, and including medical, hospital, surgical, and funeral benefits to injured persons, irrespective of legal liability of the insured, arising out of the death, injury or disablement of any person or arising out of damage to the economic interest of any person, as the result of negligence in rendering expert, fiduciary, or professional service.

(M) "Congenital defects." Insurance against congenital defects in human beings.

(N) "Livestock insurance." Insurance against loss or damage to livestock, and services of a veterinary for such animals.

(O) "Elevator." Insurance against loss of or damage to any property of the insured, resulting from the ownership, maintenance or use of elevators, except loss or damage by fire, and to make inspections of and issue certificates of inspection upon, elevators.

(P) "Entertainments." Insurance indemnifying the producer of any motion picture, television, radio, theatrical, sport, spectacle, entertainment, or similar production, event, or exhibition against loss from interruption, postponement, or cancellation thereof due to death, accidental injury, or sickness of performers, participants, directors, or other principals.

(Q) "Failure to file certain instruments." Insurance against loss resulting from failure to file or record written instruments affecting the title of or creating a lien upon personal property.

(R) "Miscellaneous." Insurance against any other kind of loss, damage, or liability properly a subject of insurance and not within any other kind of insurance as defined in this chapter, if such insurance is not disapproved by the commissioner as being contrary to law or public policy; provision of medical, hospital, surgical, and funeral benefits, and of coverage against accidental death or injury, as incidental to and part of other insurance as stated under subdivisions (3)(A), (C), (E), (H), (L), and (O) shall for all purposes be deemed to be the same kind of insurance to which it is so incidental, and shall not be subject to provisions of this code applicable to life or health insurances.

(4) "Marine and transportation insurance" which includes insurance against any and all kinds of loss or damage to:

(A) Vessels, craft, aircraft, cars, automobiles and vehicles of every kind, as well as all goods, freights, cargoes, merchandise, effects, disbursements, profits, money, bullion, precious stones, securities, choses in action, evidences of debt, valuable papers, bottomry and respondentia interests and all other kinds of property and interests therein, in respect to, appertaining to or in connection with any and all risks or perils of navigation, transit, or transportation, including war risks, on or under any seas or other waters, on land or in the air, or while being assembled, packed, crated, baled, compressed or similarly prepared for shipment or while awaiting shipment or during delays, storage, transshipment, or reshipment incident thereto, including marine builder's risks and all personal property floater risks.

(B) A person or to property in connection with or appertaining to a marine, inland marine, transit or transportation insurance, including liability for loss of or damage to either, arising out of or in connection with the construction, repair, operation, maintenance or use of the subject matter of the insurance (but not including life insurance or surety bonds or insurance against loss by reason of bodily injury to the person arising out of the ownership, maintenance or use of automobiles).

(C) Precious stones, jewels, jewelry, gold, silver and other precious metals, whether used in business or trade or otherwise and whether in the course of transportation or otherwise.

(D) Bridges, tunnels and other instrumentalities of transportation and communication (excluding buildings, their furniture and furnishings, fixed contents and supplies held in storage) unless fire, tornado, sprinkler leakage, hail, explosion, earthquake, riot and/or civil commotion are the only hazards to be covered; piers, wharves, docks and slips, excluding the risks of fire, tornado, sprinkler leakage, hail, explosion, earthquake, riot and/or civil commotion; other aids to navigation and transportation, including dry docks and marine railways.

(5) "Marine protection and indemnity insurance" which is insurance against, or against legal liability of the insured for, loss, damage or expense arising out of, or incident to, the ownership, operation, chartering, maintenance, use, repair, or construction of a vessel, craft or instrumentality in use in ocean or inland waterways, including liability of the insured for personal injury, illness or death or for loss of or damage to the property of another person.

(6) "Wet marine and transportation insurance" which is that part of marine and transportation insurance that includes only:

(A) Insurance upon vessels, crafts, hulls and of interests therein or with relation thereto.

(B) Insurance of marine builder's risks, marine war risks and contracts or marine protection and indemnity insurance.

(C) Insurance of freights and disbursements pertaining to a subject of insurance coming within this section.

(D) Insurance of personal property and interests therein, in the course of exportation from or importation into any country, and in the course of transportation coastwise or on inland waters, including transportation by land, water, or air from point of origin to final destination, in respect to, appertaining to or in connection with, any and all risks or perils of navigation, transit or transportation, and while being prepared for and while awaiting shipment, and during delays, storage, transshipment or reshipment incident thereto.

(7) "Property insurance" which is insurance on real or personal property of every kind and of every interest therein, whether on land, water, or in the air, against loss or damage from any and all hazard or cause, and against loss consequential upon such loss or damage, other than noncontractual legal liability for such loss or damage. Property insurance does not include title insurance, as defined in subdivision (9).

(8) "Surety insurance" which includes:

(A) "Fidelity insurance" which is insurance guaranteeing the fidelity of persons holding positions of public or private trust.

(B) Insurance or guaranty of the obligations of employers under workers' compensation laws.

(C) Insurance guaranteeing the performance of contracts, other than insurance policies, and guaranteeing and executing bonds, undertakings, and contracts of suretyship.

(D) Insurance indemnifying banks, bankers, brokers, financial or moneyed corporations or associations against loss, resulting from any cause, of bills of exchange, notes, bonds, securities, evidences of debt, deeds, mortgages, warehouse receipts or other valuable papers, documents, money, precious metals and articles made therefrom, jewelry, watches, necklaces, bracelets, gems, precious and semiprecious stones, including any loss while the same are being transported in armored motor vehicles, or by messenger, but not including any other risks of transportation or navigation; also insurance against loss or damage to such an insured's premises or to his furniture, furnishings, fixtures, equipment, safes, and vaults therein, caused by burglary, robbery, theft, vandalism or malicious mischief, or any attempt thereat.

(9) "Title insurance" which is the certification or guarantee of title or ownership, or insurance of owners of property or others having an interest therein or liens or encumbrances thereon, against loss by encumbrance, or defective titles, or invalidity, or adverse claim to title. A title insurer may also insure the identity, due execution, and validity of any note or bond secured by mortgage or deed of trust and the identity, due execution, validity and recording of any such mortgage or deed of trust. This definition shall not be deemed to apply to the business of preparing and issuing abstracts of title to or ownership of property or certifying to the validity of documents relative to such titles.

(10) "Multiple line insurance" which is insurance combining on a mandatory basis in a single policy coverage coming within two or more of the kinds of insurance as defined in this chapter, other than title insurance, life insurance, or the granting of annuities, and for either a divisible or an indivisible rate or premium.

(b) It is intended that certain insurance coverages may come within the definitions of two or more kinds of insurance as defined in this chapter, and the inclusion of such coverage within one definition shall not exclude it as to any other kind of insurance within the definition of which such coverage is likewise reasonably includible. Unless the context requires otherwise, a corporation engaged in the business described in subdivision (1) may also do any and all insurance business comprised in subdivision (2) relating to health insurance and subdivision (3)(D) relating to workers' compensation. A corporation engaged in business comprised in any subdivision except subdivision (1) may do any business comprised in any of the other subdivisions except subdivision (1), provided the requirements of law are complied with, and provided further, that a company not engaged in writing a particular class of insurance on July 1, 1968, shall not write insurance of such class thereafter without a

pproval of the commissioner after he is satisfied that such insurance will be soundly underwritten on the strength of adequate capital and reserves considering the risks insured against and the experience, resources and responsibility of the underwriter. In addition to any power to engage in any other kind of business besides an insurance business that may be specifically conferred by this part, an insurance company organized under this section may engage in other kinds of business to the extent necessarily or reasonably incidental to the kind or kinds of insurance business which it is authorized to do under this section.

(c) Nothing in this section shall authorize a company to issue a policy of title insurance in this state until the applicant therefor has been notified in writing by such company of all defects in title which will be excluded from coverage under the prospective policy. Such notice shall set forth in descriptive terms the nature of such excluded defects. Upon receipt of such notice, the applicant shall have the option of cancelling his application without any liability therefor to said company.

(d) Any corporation or organization which on July 1, 1968 had been organized and was existing under a special charter granted by the General Assembly prior hereto, or had been organized and was existing under insurance laws in effect prior hereto, may continue to do a business of insurance specified in this section and authorized by its charter under the continued supervision of the commissioner.

(e) The provisions of this title relating to the regulation of the business of insurance shall not apply to activities engaged in by ambulance services and first responder services for which they are licensed by the board of health pursuant to chapter 71 of Title 24.
(a) Subject to the additional or varied requirements stated in this subchapter, a corporation may be formed pursuant to the general corporation law to do any and all insurance and reinsurance comprised in any one of the following numbered subdivisions:

(1) "Life insurance" which is insurance on human lives. The business of life insurance includes also the granting of endowment benefits, additional benefits in event of death or dismemberment by accident or accidental means, additional benefits in event of the insured's disability and optional modes of settlement of proceeds of life insurance. Life insurance does not include workers' compensation coverages.

(2) "Health insurance" which is insurance of human beings against bodily injury, disablement, or death by accident or accidental means, or the expense thereof, or against disablement or expense resulting from sickness, and every insurance appertaining thereto. Health insurance does not include workers' compensation coverages.

(3) "Casualty insurance" which includes:

(A) "Vehicle insurance." Insurance against loss of or damage to any land vehicle or aircraft or any draft or riding animal or to property while contained therein or thereon or being loaded or unloaded therein or therefrom, from any hazard or cause, and against any loss, liability or expense resulting from or incidental to ownership, maintenance or use of any such vehicle, aircraft, or animal; and provision of medical, hospital, surgical, disability benefits to injured persons and funeral and death benefits to dependents, beneficiaries, or personal representatives of persons killed, irrespective of legal liability of the insured, when issued as an incidental coverage with or supplemental to insurance on the vehicle, aircraft or animal.

(B) "Automobile guaranty." Insurance of the mechanical condition or freedom from defective or worn parts or equipment, of motor vehicles.

(C) "Liability insurance." Insurance against legal liability for the death, injury, or disability of any human being, or for damage to property; and provision of medical, hospital, surgical, disability benefits to injured persons and funeral and death benefits to dependents, beneficiaries or personal representatives of persons killed, irrespective of legal liability of the insured, when issued as an incidental coverage with or supplemental to liability insurance.

(D) "Workers' compensation." Insurance of the obligations accepted by, imposed upon, or assumed by employers under law for death, disablement, or injury of employees.

(E) "Burglary and theft." Insurance against loss or damage by burglary, theft, larceny, robbery, forgery, fraud, vandalism, malicious mischief, confiscation, or wrongful conversion, disposal or concealment, or from any attempt at any of the foregoing; including supplemental coverage for medical, hospital, surgical, and funeral expense incurred by the named insured or any other person as a result of bodily injury during the commission of a burglary, robbery, or theft by another; also insurance against loss of or damage to moneys, coins, bullion, securities, notes, drafts, acceptances, or any other valuable papers and documents, resulting from any cause.

(F) "Personal property floater." Insurance upon personal effects against loss or damage from any cause, under a personal property floater.

(G) "Glass." Insurance against loss or damage to glass, including its lettering, ornamentation, and fittings.

(H) "Boiler and machinery." Insurance against any liability and loss or damage to property or interest resulting from accidents to or explosions of boilers, pipes, pressure containers, machinery, or apparatus, and to make inspection of and issue certificates of inspection upon boilers, machinery, and apparatus of any kind, whether or not insured.

(J) 1 "Leakage and fire extinguishing equipment." Insurance against loss or damage to any property or interest caused by the breakage or leakage of sprinklers, hoses, pumps, and other fire extinguishing equipment or apparatus, water pipes or containers, or by water entering through leaks or openings in buildings, and insurance against loss or damage to such sprinklers, hoses, pumps, and other fire extinguishing equipment or apparatus.

1 So in original. Section enacted without subdiv. (I).

(K) "Credit." Insurance against loss or damage resulting from failure of debtors to pay their obligations to the insured.

(L) "Malpractice." Insurance against legal liability of the insured, and against loss, damage, or expense incidental to a claim of such liability, and including medical, hospital, surgical, and funeral benefits to injured persons, irrespective of legal liability of the insured, arising out of the death, injury or disablement of any person or arising out of damage to the economic interest of any person, as the result of negligence in rendering expert, fiduciary, or professional service.

(M) "Congenital defects." Insurance against congenital defects in human beings.

(N) "Livestock insurance." Insurance against loss or damage to livestock, and services of a veterinary for such animals.

(O) "Elevator." Insurance against loss of or damage to any property of the insured, resulting from the ownership, maintenance or use of elevators, except loss or damage by fire, and to make inspections of and issue certificates of inspection upon, elevators.

(P) "Entertainments." Insurance indemnifying the producer of any motion picture, television, radio, theatrical, sport, spectacle, entertainment, or similar production, event, or exhibition against loss from interruption, postponement, or cancellation thereof due to death, accidental injury, or sickness of performers, participants, directors, or other principals.

(Q) "Failure to file certain instruments." Insurance against loss resulting from failure to file or record written instruments affecting the title of or creating a lien upon personal property.

(R) "Miscellaneous." Insurance against any other kind of loss, damage, or liability properly a subject of insurance and not within any other kind of insurance as defined in this chapter, if such insurance is not disapproved by the commissioner as being contrary to law or public policy; provision of medical, hospital, surgical, and funeral benefits, and of coverage against accidental death or injury, as incidental to and part of other insurance as stated under subdivisions (3)(A), (C), (E), (H), (L), and (O) shall for all purposes be deemed to be the same kind of insurance to which it is so incidental, and shall not be subject to provisions of this code applicable to life or health insurances.

(4) "Marine and transportation insurance" which includes insurance against any and all kinds of loss or damage to:

(A) Vessels, craft, aircraft, cars, automobiles and vehicles of every kind, as well as all goods, freights, cargoes, merchandise, effects, disbursements, profits, money, bullion, precious stones, securities, choses in action, evidences of debt, valuable papers, bottomry and respondentia interests and all other kinds of property and interests therein, in respect to, appertaining to or in connection with any and all risks or perils of navigation, transit, or transportation, including war risks, on or under any seas or other waters, on land or in the air, or while being assembled, packed, crated, baled, compressed or similarly prepared for shipment or while awaiting shipment or during delays, storage, transshipment, or reshipment incident thereto, including marine builder's risks and all personal property floater risks.

(B) A person or to property in connection with or appertaining to a marine, inland marine, transit or transportation insurance, including liability for loss of or damage to either, arising out of or in connection with the construction, repair, operation, maintenance or use of the subject matter of the insurance (but not including life insurance or surety bonds or insurance against loss by reason of bodily injury to the person arising out of the ownership, maintenance or use of automobiles).

(C) Precious stones, jewels, jewelry, gold, silver and other precious metals, whether used in business or trade or otherwise and whether in the course of transportation or otherwise.

(D) Bridges, tunnels and other instrumentalities of transportation and communication (excluding buildings, their furniture and furnishings, fixed contents and supplies held in storage) unless fire, tornado, sprinkler leakage, hail, explosion, earthquake, riot and/or civil commotion are the only hazards to be covered; piers, wharves, docks and slips, excluding the risks of fire, tornado, sprinkler leakage, hail, explosion, earthquake, riot and/or civil commotion; other aids to navigation and transportation, including dry docks and marine railways.

(5) "Marine protection and indemnity insurance" which is insurance against, or against legal liability of the insured for, loss, damage or expense arising out of, or incident to, the ownership, operation, chartering, maintenance, use, repair, or construction of a vessel, craft or instrumentality in use in ocean or inland waterways, including liability of the insured for personal injury, illness or death or for loss of or damage to the property of another person.

(6) "Wet marine and transportation insurance" which is that part of marine and transportation insurance that includes only:

(A) Insurance upon vessels, crafts, hulls and of interests therein or with relation thereto.

(B) Insurance of marine builder's risks, marine war risks and contracts or marine protection and indemnity insurance.

(C) Insurance of freights and disbursements pertaining to a subject of insurance coming within this section.

(D) Insurance of personal property and interests therein, in the course of exportation from or importation into any country, and in the course of transportation coastwise or on inland waters, including transportation by land, water, or air from point of origin to final destination, in respect to, appertaining to or in connection with, any and all risks or perils of navigation, transit or transportation, and while being prepared for and while awaiting shipment, and during delays, storage, transshipment or reshipment incident thereto.

(7) "Property insurance" which is insurance on real or personal property of every kind and of every interest therein, whether on land, water, or in the air, against loss or damage from any and all hazard or cause, and against loss consequential upon such loss or damage, other than noncontractual legal liability for such loss or damage. Property insurance does not include title insurance, as defined in subdivision (9).

(8) "Surety insurance" which includes:

(A) "Fidelity insurance" which is insurance guaranteeing the fidelity of persons holding positions of public or private trust.

(B) Insurance or guaranty of the obligations of employers under workers' compensation laws.

(C) Insurance guaranteeing the performance of contracts, other than insurance policies, and guaranteeing and executing bonds, undertakings, and contracts of suretyship.

(D) Insurance indemnifying banks, bankers, brokers, financial or moneyed corporations or associations against loss, resulting from any cause, of bills of exchange, notes, bonds, securities, evidences of debt, deeds, mortgages, warehouse receipts or other valuable papers, documents, money, precious metals and articles made therefrom, jewelry, watches, necklaces, bracelets, gems, precious and semiprecious stones, including any loss while the same are being transported in armored motor vehicles, or by messenger, but not including any other risks of transportation or navigation; also insurance against loss or damage to such an insured's premises or to his furniture, furnishings, fixtures, equipment, safes, and vaults therein, caused by burglary, robbery, theft, vandalism or malicious mischief, or any attempt thereat.

(9) "Title insurance" which is the certification or guarantee of title or ownership, or insurance of owners of property or others having an interest therein or liens or encumbrances thereon, against loss by encumbrance, or defective titles, or invalidity, or adverse claim to title. A title insurer may also insure the identity, due execution, and validity of any note or bond secured by mortgage or deed of trust and the identity, due execution, validity and recording of any such mortgage or deed of trust. This definition shall not be deemed to apply to the business of preparing and issuing abstracts of title to or ownership of property or certifying to the validity of documents relative to such titles.

(10) "Multiple line insurance" which is insurance combining on a mandatory basis in a single policy coverage coming within two or more of the kinds of insurance as defined in this chapter, other than title insurance, life insurance, or the granting of annuities, and for either a divisible or an indivisible rate or premium.

(b) It is intended that certain insurance coverages may come within the definitions of two or more kinds of insurance as defined in this chapter, and the inclusion of such coverage within one definition shall not exclude it as to any other kind of insurance within the definition of which such coverage is likewise reasonably includible. Unless the context requires otherwise, a corporation engaged in the business described in subdivision (1) may also do any and all insurance business comprised in subdivision (2) relating to health insurance and subdivision (3)(D) relating to workers' compensation. A corporation engaged in business comprised in any subdivision except subdivision (1) may do any business comprised in any of the other subdivisions except subdivision (1), provided the requirements of law are complied with, and provided further, that a company not engaged in writing a particular class of insurance on July 1, 1968, shall not write insurance of such class thereafter without a

pproval of the commissioner after he is satisfied that such insurance will be soundly underwritten on the strength of adequate capital and reserves considering the risks insured against and the experience, resources and responsibility of the underwriter. In addition to any power to engage in any other kind of business besides an insurance business that may be specifically conferred by this part, an insurance company organized under this section may engage in other kinds of business to the extent necessarily or reasonably incidental to the kind or kinds of insurance business which it is authorized to do under this section.

(c) Nothing in this section shall authorize a company to issue a policy of title insurance in this state until the applicant therefor has been notified in writing by such company of all defects in title which will be excluded from coverage under the prospective policy. Such notice shall set forth in descriptive terms the nature of such excluded defects. Upon receipt of such notice, the applicant shall have the option of cancelling his application without any liability therefor to said company.

(d) Any corporation or organization which on July 1, 1968 had been organized and was existing under a special charter granted by the General Assembly prior hereto, or had been organized and was existing under insurance laws in effect prior hereto, may continue to do a business of insurance specified in this section and authorized by its charter under the continued supervision of the commissioner.

(e) The provisions of this title relating to the regulation of the business of insurance shall not apply to activities engaged in by ambulance services and first responder services for which they are licensed by the board of health pursuant to chapter 71 of Title 24.

.

Vt. Stat. Ann. tit. 8, § 3368a. Unauthorized and misleading transactions.(a) No person shall transact insurance business in this state unless the commissioner has issued a license or certificate of authority to such person as required by section 3361 or 3368 of this title, or by chapters 123, 125, and 139 of this title. The provisions of this section shall not apply to an insurer licensed in this state or in any foreign or alien jurisdiction who is subject to section 3368 of this title.

(b) No person shall act as an officer, director, or controlling person for a person who is engaged in a violation of subsection (a) of this section. As used in this subsection, "controlling" is defined by subdivision 3681(3) of this title.

(c) No person shall directly or indirectly represent or aid a person in violating subsection (a) of this section.

(d)(1) No person shall use in its advertisements or other marketing materials or communications the term "insurance" or any other term in a manner which could reasonably lead a person into believing that the product marketed, offered, or issued is insurance, unless such person is authorized under this title to transact the business of insurance.

(2) No person shall use in its advertisements or other marketing materials or communications the terms "health plan," "coverage," "co-pay," "co-payments," "deductible," "preexisting conditions," "guaranteed issue," "premium," "enrollment," "preferred provider organization," or any other term in a manner that could reasonably mislead an individual into believing that the product marketed, offered, or issued is health insurance, unless such person is authorized under this title to transact the business of health insurance.

(e) In addition to any other remedies or penalties provided by law:

(1) For each violation of the provisions of subsection (a), (b), or (c) of this section a person shall be imprisoned not more than five years or fined not more than $10,000.00, or both.

(2) For each violation of the provisions of subsection (d) of this section a person shall be imprisoned not more than two years or fined not more than $5,000.00, or both.
Vt. Stat. Ann. tit. 8, § 3368a. Unauthorized and misleading transactions.(a) No person shall transact insurance business in this state unless the commissioner has issued a license or certificate of authority to such person as required by section 3361 or 3368 of this title, or by chapters 123, 125, and 139 of this title. The provisions of this section shall not apply to an insurer licensed in this state or in any foreign or alien jurisdiction who is subject to section 3368 of this title.

(b) No person shall act as an officer, director, or controlling person for a person who is engaged in a violation of subsection (a) of this section. As used in this subsection, "controlling" is defined by subdivision 3681(3) of this title.

(c) No person shall directly or indirectly represent or aid a person in violating subsection (a) of this section.

(d)(1) No person shall use in its advertisements or other marketing materials or communications the term "insurance" or any other term in a manner which could reasonably lead a person into believing that the product marketed, offered, or issued is insurance, unless such person is authorized under this title to transact the business of insurance.

(2) No person shall use in its advertisements or other marketing materials or communications the terms "health plan," "coverage," "co-pay," "co-payments," "deductible," "preexisting conditions," "guaranteed issue," "premium," "enrollment," "preferred provider organization," or any other term in a manner that could reasonably mislead an individual into believing that the product marketed, offered, or issued is health insurance, unless such person is authorized under this title to transact the business of health insurance.

(e) In addition to any other remedies or penalties provided by law:

(1) For each violation of the provisions of subsection (a), (b), or (c) of this section a person shall be imprisoned not more than five years or fined not more than $10,000.00, or both.

(2) For each violation of the provisions of subsection (d) of this section a person shall be imprisoned not more than two years or fined not more than $5,000.00, or both.

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Vt. Stat. Ann. tit. 8, § 3381. Legislative purpose and policy.The purpose of this article is to subject certain insurers to the jurisdiction of courts of this state by or on behalf of insureds or beneficiaries under insurance contracts. The legislature declares that it is a subject of concern that many residents of this state hold policies of insurance issued or delivered in this state by insurers while not authorized to do business in this state, thus presenting to such residents the often insuperable obstacle of resorting to distant forums for the purpose of asserting legal rights under such policies. In furtherance of such state interest, the legislature herein provides a method of substituted service of process upon such insurers and declares that in so doing it exercises its power to protect its residents and to define, for the purpose of this article, what constitutes doing business in this state, and also exercises powers and privileges available to the state by virtue of public law 15, 79th Congress of the United States, Chapter 20, 1s

t Session, S. 340, which declares that the business of insurance and every person engaged therein shall be subject to the laws of the several states.
Vt. Stat. Ann. tit. 8, § 3381. Legislative purpose and policy.The purpose of this article is to subject certain insurers to the jurisdiction of courts of this state by or on behalf of insureds or beneficiaries under insurance contracts. The legislature declares that it is a subject of concern that many residents of this state hold policies of insurance issued or delivered in this state by insurers while not authorized to do business in this state, thus presenting to such residents the often insuperable obstacle of resorting to distant forums for the purpose of asserting legal rights under such policies. In furtherance of such state interest, the legislature herein provides a method of substituted service of process upon such insurers and declares that in so doing it exercises its power to protect its residents and to define, for the purpose of this article, what constitutes doing business in this state, and also exercises powers and privileges available to the state by virtue of public law 15, 79th Congress of the United States, Chapter 20, 1s

t Session, S. 340, which declares that the business of insurance and every person engaged therein shall be subject to the laws of the several states.

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Vt. Stat. Ann. tit. 8, § 3626. Prohibition against advertising of membership in association
A person who makes, publishes, or circulates, or causes to be made, published or circulated, any statement which uses the existence of the association for the purpose of sales, solicitation or inducement to purchase any form of insurance within the scope of this subchapter shall be subject to an administrative penalty of not more than $500.00 for each violation.Vt. Stat. Ann. tit. 8, § 3626. Prohibition against advertising of membership in association
A person who makes, publishes, or circulates, or causes to be made, published or circulated, any statement which uses the existence of the association for the purpose of sales, solicitation or inducement to purchase any form of insurance within the scope of this subchapter shall be subject to an administrative penalty of not more than $500.00 for each violation.

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Vt. Stat. Ann. tit. 8, § 3701. Discriminations prohibited.A life insurance company doing business in the state shall not make or permit to be made any distinction or unfair discrimination between individual insureds of the same class and of equal expectation of life as to:

(1) the amount of the premiums or the terms of payment thereof; or

(2) the rate charged for policies of life or endowment insuranc;, or

(3) the dividends or other benefits payable thereon; or

(4) any of the terms and conditions of the policies it issues.
Vt. Stat. Ann. tit. 8, § 3701. Discriminations prohibited.A life insurance company doing business in the state shall not make or permit to be made any distinction or unfair discrimination between individual insureds of the same class and of equal expectation of life as to:

(1) the amount of the premiums or the terms of payment thereof; or

(2) the rate charged for policies of life or endowment insuranc;, or

(3) the dividends or other benefits payable thereon; or

(4) any of the terms and conditions of the policies it issues.

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Vt. Stat. Ann. tit. 8, § 3702. Other prohibited practices.A life insurance company doing business in the state or an agent thereof shall not:

1) issue a policy of insurance or make an agreement other than that plainly expressed in the policy issued to the insured;

(2) pay or allow, or offer to pay or allow, as an inducement to insurance, a rebate or premium payable on the policy;

(3) grant a special favor or advantage in the dividends or other benefits to accrue thereon; or

(4) provide any valuable consideration or inducement not specified in the policy.
Vt. Stat. Ann. tit. 8, § 3702. Other prohibited practices.A life insurance company doing business in the state or an agent thereof shall not:

1) issue a policy of insurance or make an agreement other than that plainly expressed in the policy issued to the insured;

(2) pay or allow, or offer to pay or allow, as an inducement to insurance, a rebate or premium payable on the policy;

(3) grant a special favor or advantage in the dividends or other benefits to accrue thereon; or

(4) provide any valuable consideration or inducement not specified in the policy.

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Vt. Stat. Ann. tit. 8, § 3843. General rules.(a)(1) A life settlement provider entering into a life settlement contract shall first obtain:

(A) if the policy owner is the insured, a written statement from a licensed attending physician that the policy owner is of sound mind and under no constraint or undue influence to enter into a life settlement contract; and

(B) if the medical records of the insured are intended or required to be released in connection with a proposed life settlement transaction, a document in which the insured consents to the release of his or her medical records to a licensed life settlement provider, life settlement broker, the insurance company that issued the life insurance policy covering the life of the insured, and any other person to whom the medical records will be released.

(2) Within 20 days after a policy owner executes documents necessary to transfer any rights under an insurance policy or within 20 days of entering any agreement, option, promise, or any other form of understanding, expressed or implied, to subject the policy to a life settlement contract, the life settlement provider shall give written notice to the insurer that issued that insurance policy that the policy has or will become a policy subject to a life settlement contract. The notice shall be accompanied by the documents required by subdivision (3) of this subsection.

(3) The life settlement provider shall deliver a copy of the medical release required under subdivision (1)(B) of this subsection, a copy of the policy owner's application for the life settlement contract, the notice required under subdivision (2) of this subsection, and a request for verification of coverage to the insurer that issued the life policy that is the subject of the life settlement transaction. A form for verification of coverage approved by the commissioner shall be used.

(4) The insurer shall respond to a request for verification of coverage submitted on an approved form by a life settlement provider or life settlement broker within 30 calendar days of the date the request is received and shall indicate whether, based on the medical evidence and documents provided, the insurer intends to pursue an investigation at this time regarding the validity of the insurance contract or possible insurance or life settlement fraud. The insurer shall accept a request for verification of coverage made on a form approved by the commissioner. The insurer shall accept an original or facsimile or electronic copy of such request and any accompanying authorization signed by the policy owner. Failure by the insurer to meet its obligations under this subsection shall be a violation of sections 3844 and 3848 of this title.

(5) Prior to or at the time of execution of the life settlement contract, the life settlement provider shall obtain a witnessed document in which the policy owner consents to the life settlement contract, represents that the policy owner has a full and complete understanding of the life settlement contract and of the benefits of the life insurance policy, acknowledges that he or she is entering into the life settlement contract freely and voluntarily, has received the disclosures required in section 3841 of this title and, for persons with a terminal or chronic illness or condition, acknowledges that the insured has a terminal or chronic illness and that the terminal or chronic illness or condition was diagnosed after the life insurance policy was issued.

(6) If a life settlement broker performs any of these activities required of the life settlement provider, the provider is deemed to have fulfilled such requirement.

(b) All medical information solicited or obtained by any licensee shall be subject to the applicable provisions of state law relating to confidentiality of medical information and to the department's Regulation No. IH-2001-I, Privacy of Consumer Financial and Health Information.

(c) All life settlement contracts entered into in this state shall provide the policy owner with an absolute right to rescind the contract before 30 calendar days after the date upon which the life settlement contract is executed by all parties. Rescission by the policy owner may be conditioned upon the policy owner's both giving notice and repaying to the life settlement provider within the rescission period all proceeds of the settlement and any premiums, loans, and loan interest paid by or on behalf of the life settlement provider in connection with or as a consequence of the life settlement. If the insured dies during the rescission period, the life settlement contract shall be deemed to have been rescinded, subject to repayment to the life settlement provider or purchaser of all life settlement proceeds and any premiums, loans, and loan interest that have been paid by the life settlement provider or purchaser, which shall be paid within 60 calendar days of the death of the insured. In the event of any rescission, if the life settlement provider has paid commissions or other compensation to a life settlement broker in connection with the rescinded transaction, the life settlement broker shall refund all such commissions and compensation to the life settlement provider within five business days following receipt of written demand from the life settlement provider, which demand shall be accompanied by either the policy owner's notice of rescission if rescinded at the election of the policy owner or notice of the death of the insured if rescinded by reason of the death of the insured within the applicable rescission period.

(d) The life settlement provider shall instruct the policy owner to send the executed documents required to effect the change in ownership, assignment, or change in beneficiary directly to an independent escrow agent. Within three business days after the date the escrow agent receives the document (or from the date the life settlement provider receives the documents, if the policy owner erroneously provides the documents directly to the provider), the provider shall pay or transfer the proceeds of the life settlement into an escrow or trust account maintained in a state- or federally chartered financial institution whose deposits are insured by the Federal Deposit Insurance Corporation. Upon payment of the settlement proceeds into the escrow account, the escrow agent shall deliver the original change in ownership, assignment, or change in beneficiary forms to the life settlement provider or related provider trust or other designated representative of the life settlement provider. Up

on the escrow agent's receipt of the acknowledgment of the properly completed transfer of ownership, assignment, or designation of beneficiary from the insurance company, the escrow agent shall pay the settlement proceeds to the policy owner.

(e) Failure to tender consideration to the policy owner for the life settlement contract within the time set forth in the disclosure pursuant to subdivision 3841(a)(7) of this title renders the life settlement contract voidable by the policy owner for lack of consideration until the time consideration is tendered to and accepted by the policy owner. Funds shall be deemed sent by a life settlement provider to a policy owner as of the date that the escrow agent either releases funds for wire transfer to the policy owner or places a check for delivery to the policy owner via the United States Postal Service or another nationally recognized delivery service.

(f) Contacts with the insured for the purpose of determining the health status of the insured by the life settlement provider or life settlement broker after the life settlement has occurred shall only be made by the life settlement provider or broker licensed in this state or its authorized representatives and shall be limited to once every three months for insureds with a life expectancy of more than six months and to no more than once every two months for insureds with a life expectancy of six months or less. The provider or broker shall explain the procedure for these contacts at the time the life settlement contract is entered into. The limitations set forth in this subsection shall not apply to any contacts with an insured for reasons other than determining the insured's health status. Life settlement providers and life settlement brokers shall be responsible for the actions of their authorized representatives.

(g)(1) In order to assure that terminally ill policy owners receive a reasonable return for entering into a life settlement contract, the following shall be minimum payouts; provided that upon request of the policy owner the commissioner may waive the requirements of this subdivision:

Terminally Ill Policy Owner's Minimum Percentage of Ex-

Remaining Life Expectancy pected Death Benefit (Net

At Time of Settlement of Loans and Any Cash

Surrender Value) to be

Received by the Terminally

Ill Policy Owner

Less than 6 months 85%

At least 6, but less than 12 months 80%

At least 12, but less than 18 months 75%

At least 18, but less than 24 months 70%

At least 24, but less than 36 months 60%

(2) The expected death benefit is the death benefit provided under the terms of the policy subject to the life settlement contract, assuming the death of the insured were to occur on the date the life settlement contract is signed.

(3) The payout shall be increased by 100 percent of any net cash surrender value of the insurance at the time the life settlement contract is issued.

(4) Payouts may be reduced by the minimum premium, including premiums payable for additional benefits retained at the option of the terminally ill policy owner, if any, required to keep the contract in force for the duration of the terminally ill policy owner's remaining life expectancy. Other than this allowable reduction in payout, there shall be no other retention for expenses or broker's fees. At the time of settlement, the life settlement provider shall place in trust a sum equal to the amount the payout was reduced for future premiums. Sums placed in trust under this section shall only be reduced by the life settlement provider upon payment of policy premiums as they come due. If the terminally ill policy owner dies with a sum held in trust under this section, the sum remaining in trust shall become the property of the life settlement provider.

(5) If the life settlement provider becomes insolvent or is the subject of a bankruptcy or other insolvency proceeding during the life of the terminally ill policy owner whose policy had riders retained, the life settlement provider shall notify the terminally ill policy owner and other insureds of the insolvency or initiation of insolvency proceedings. Persons with an interest in the continuation of riders retained may pay any premiums required to keep riders retained in force.

(6) In computing the minimum percentage of expected death benefit (net of loans and cash surrender value) the death benefit value of any accidental death benefit rider shall not be included. There shall be no minimum percentage payment required for the transfer of an accidental death benefit rider to the life settlement company.

(7) Life expectancy shall be determined by a physician selected by the terminally ill policy owner, on the basis of medical records. The physician selected will send life expectancy information to the life settlement provider. If the life settlement provider disagrees with the life expectancy estimate of the physician selected by the terminally ill policy owner, the terminally ill policy owner will select a second physician to make an estimate of life expectancy, based on medical records. The second physician's decision shall be final.
Vt. Stat. Ann. tit. 8, § 3843. General rules.(a)(1) A life settlement provider entering into a life settlement contract shall first obtain:

(A) if the policy owner is the insured, a written statement from a licensed attending physician that the policy owner is of sound mind and under no constraint or undue influence to enter into a life settlement contract; and

(B) if the medical records of the insured are intended or required to be released in connection with a proposed life settlement transaction, a document in which the insured consents to the release of his or her medical records to a licensed life settlement provider, life settlement broker, the insurance company that issued the life insurance policy covering the life of the insured, and any other person to whom the medical records will be released.

(2) Within 20 days after a policy owner executes documents necessary to transfer any rights under an insurance policy or within 20 days of entering any agreement, option, promise, or any other form of understanding, expressed or implied, to subject the policy to a life settlement contract, the life settlement provider shall give written notice to the insurer that issued that insurance policy that the policy has or will become a policy subject to a life settlement contract. The notice shall be accompanied by the documents required by subdivision (3) of this subsection.

(3) The life settlement provider shall deliver a copy of the medical release required under subdivision (1)(B) of this subsection, a copy of the policy owner's application for the life settlement contract, the notice required under subdivision (2) of this subsection, and a request for verification of coverage to the insurer that issued the life policy that is the subject of the life settlement transaction. A form for verification of coverage approved by the commissioner shall be used.

(4) The insurer shall respond to a request for verification of coverage submitted on an approved form by a life settlement provider or life settlement broker within 30 calendar days of the date the request is received and shall indicate whether, based on the medical evidence and documents provided, the insurer intends to pursue an investigation at this time regarding the validity of the insurance contract or possible insurance or life settlement fraud. The insurer shall accept a request for verification of coverage made on a form approved by the commissioner. The insurer shall accept an original or facsimile or electronic copy of such request and any accompanying authorization signed by the policy owner. Failure by the insurer to meet its obligations under this subsection shall be a violation of sections 3844 and 3848 of this title.

(5) Prior to or at the time of execution of the life settlement contract, the life settlement provider shall obtain a witnessed document in which the policy owner consents to the life settlement contract, represents that the policy owner has a full and complete understanding of the life settlement contract and of the benefits of the life insurance policy, acknowledges that he or she is entering into the life settlement contract freely and voluntarily, has received the disclosures required in section 3841 of this title and, for persons with a terminal or chronic illness or condition, acknowledges that the insured has a terminal or chronic illness and that the terminal or chronic illness or condition was diagnosed after the life insurance policy was issued.

(6) If a life settlement broker performs any of these activities required of the life settlement provider, the provider is deemed to have fulfilled such requirement.

(b) All medical information solicited or obtained by any licensee shall be subject to the applicable provisions of state law relating to confidentiality of medical information and to the department's Regulation No. IH-2001-I, Privacy of Consumer Financial and Health Information.

(c) All life settlement contracts entered into in this state shall provide the policy owner with an absolute right to rescind the contract before 30 calendar days after the date upon which the life settlement contract is executed by all parties. Rescission by the policy owner may be conditioned upon the policy owner's both giving notice and repaying to the life settlement provider within the rescission period all proceeds of the settlement and any premiums, loans, and loan interest paid by or on behalf of the life settlement provider in connection with or as a consequence of the life settlement. If the insured dies during the rescission period, the life settlement contract shall be deemed to have been rescinded, subject to repayment to the life settlement provider or purchaser of all life settlement proceeds and any premiums, loans, and loan interest that have been paid by the life settlement provider or purchaser, which shall be paid within 60 calendar days of the death of the insured. In the event of any rescission, if the life settlement provider has paid commissions or other compensation to a life settlement broker in connection with the rescinded transaction, the life settlement broker shall refund all such commissions and compensation to the life settlement provider within five business days following receipt of written demand from the life settlement provider, which demand shall be accompanied by either the policy owner's notice of rescission if rescinded at the election of the policy owner or notice of the death of the insured if rescinded by reason of the death of the insured within the applicable rescission period.

(d) The life settlement provider shall instruct the policy owner to send the executed documents required to effect the change in ownership, assignment, or change in beneficiary directly to an independent escrow agent. Within three business days after the date the escrow agent receives the document (or from the date the life settlement provider receives the documents, if the policy owner erroneously provides the documents directly to the provider), the provider shall pay or transfer the proceeds of the life settlement into an escrow or trust account maintained in a state- or federally chartered financial institution whose deposits are insured by the Federal Deposit Insurance Corporation. Upon payment of the settlement proceeds into the escrow account, the escrow agent shall deliver the original change in ownership, assignment, or change in beneficiary forms to the life settlement provider or related provider trust or other designated representative of the life settlement provider. Up

on the escrow agent's receipt of the acknowledgment of the properly completed transfer of ownership, assignment, or designation of beneficiary from the insurance company, the escrow agent shall pay the settlement proceeds to the policy owner.

(e) Failure to tender consideration to the policy owner for the life settlement contract within the time set forth in the disclosure pursuant to subdivision 3841(a)(7) of this title renders the life settlement contract voidable by the policy owner for lack of consideration until the time consideration is tendered to and accepted by the policy owner. Funds shall be deemed sent by a life settlement provider to a policy owner as of the date that the escrow agent either releases funds for wire transfer to the policy owner or places a check for delivery to the policy owner via the United States Postal Service or another nationally recognized delivery service.

(f) Contacts with the insured for the purpose of determining the health status of the insured by the life settlement provider or life settlement broker after the life settlement has occurred shall only be made by the life settlement provider or broker licensed in this state or its authorized representatives and shall be limited to once every three months for insureds with a life expectancy of more than six months and to no more than once every two months for insureds with a life expectancy of six months or less. The provider or broker shall explain the procedure for these contacts at the time the life settlement contract is entered into. The limitations set forth in this subsection shall not apply to any contacts with an insured for reasons other than determining the insured's health status. Life settlement providers and life settlement brokers shall be responsible for the actions of their authorized representatives.

(g)(1) In order to assure that terminally ill policy owners receive a reasonable return for entering into a life settlement contract, the following shall be minimum payouts; provided that upon request of the policy owner the commissioner may waive the requirements of this subdivision:

Terminally Ill Policy Owner's Minimum Percentage of Ex-

Remaining Life Expectancy pected Death Benefit (Net

At Time of Settlement of Loans and Any Cash

Surrender Value) to be

Received by the Terminally

Ill Policy Owner

Less than 6 months 85%

At least 6, but less than 12 months 80%

At least 12, but less than 18 months 75%

At least 18, but less than 24 months 70%

At least 24, but less than 36 months 60%

(2) The expected death benefit is the death benefit provided under the terms of the policy subject to the life settlement contract, assuming the death of the insured were to occur on the date the life settlement contract is signed.

(3) The payout shall be increased by 100 percent of any net cash surrender value of the insurance at the time the life settlement contract is issued.

(4) Payouts may be reduced by the minimum premium, including premiums payable for additional benefits retained at the option of the terminally ill policy owner, if any, required to keep the contract in force for the duration of the terminally ill policy owner's remaining life expectancy. Other than this allowable reduction in payout, there shall be no other retention for expenses or broker's fees. At the time of settlement, the life settlement provider shall place in trust a sum equal to the amount the payout was reduced for future premiums. Sums placed in trust under this section shall only be reduced by the life settlement provider upon payment of policy premiums as they come due. If the terminally ill policy owner dies with a sum held in trust under this section, the sum remaining in trust shall become the property of the life settlement provider.

(5) If the life settlement provider becomes insolvent or is the subject of a bankruptcy or other insolvency proceeding during the life of the terminally ill policy owner whose policy had riders retained, the life settlement provider shall notify the terminally ill policy owner and other insureds of the insolvency or initiation of insolvency proceedings. Persons with an interest in the continuation of riders retained may pay any premiums required to keep riders retained in force.

(6) In computing the minimum percentage of expected death benefit (net of loans and cash surrender value) the death benefit value of any accidental death benefit rider shall not be included. There shall be no minimum percentage payment required for the transfer of an accidental death benefit rider to the life settlement company.

(7) Life expectancy shall be determined by a physician selected by the terminally ill policy owner, on the basis of medical records. The physician selected will send life expectancy information to the life settlement provider. If the life settlement provider disagrees with the life expectancy estimate of the physician selected by the terminally ill policy owner, the terminally ill policy owner will select a second physician to make an estimate of life expectancy, based on medical records. The second physician's decision shall be final.

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Vt. Stat. Ann. tit. 8, § 3844. Prohibited practices.(a) It is a violation of this subchapter for any person to:

(1) commit any fraudulent life settlement acts;

(2) enter into any practice, agreement, arrangement, or transaction which results in or is intended to result in the issuance of stranger-originated life insurance or STOLI; or

(3) enter, within a five-year period commencing with the date of issuance of the insurance policy or certificate, into a life settlement contract unless the policy owner certifies to the life settlement provider that one or more of the following conditions have commenced or occurred after the date of issuance of the insurance policy or certificate and within the five-year period:

(A) The policy was issued upon the policy owner's exercise of conversion rights arising out of a group or individual policy, provided the total of the time covered under the conversion policy plus the time covered under the prior policy is at least 60 months. The time covered under a group policy shall be calculated without regard to any change in insurance carriers, provided the coverage has been continuous and under the same group sponsorship;

(B) The policy owner submits independent evidence to the life settlement provider that one or more of the following conditions have commenced or occurred after the date of issuance of the insurance policy or certificate and within the five-year period:

(i) The policy owner or insured is terminally or chronically ill;

(ii) The policy owner's spouse dies;

(iii) The policy owner divorces his or her spouse;

(iv) The policy owner retires from full-time employment;

(v) The policy owner becomes physically or mentally disabled and a physician determines that the disability prevents the policy owner from maintaining full-time employment;

(vi) A final order, judgment, or decree is entered by a court of competent jurisdiction, on the application of a creditor of the policy owner, adjudicating the policy owner bankrupt or insolvent or approving a petition seeking reorganization of the policy owner or appointing a receiver, trustee, or liquidator to all or a substantial part of the policy owner's assets; or

(vii) The policy owner has suffered a significant economic reversal, as demonstrated by a 50 percent decline in the policy owner's annual adjusted gross income, or by a 50 percent decline in the policy owner's net worth, or as demonstrated by other facts and circumstances approved by the commissioner; or

(C) The policy owner enters into a life settlement contract more than two years after the date of issuance of a policy and, with respect to the policy, at all times prior to the date that is two years after policy issuance, the following conditions are met:

(i) Policy premiums have been funded exclusively with unencumbered assets, including an interest in the life insurance policy being financed only to the extent of its net cash surrender value, provided by or with full recourse liability incurred by the insured or a person described in subdivision 3835(9)(C)(v) of this title;

(ii) There is no agreement or understanding with any other person to guarantee any such liability or to purchase or stand ready to purchase the policy, including through an assumption or forgiveness of the loan; and

(iii) A life settlement provider or a life settlement broker has not conducted a life expectancy evaluation of the insured in connection with a proposed settlement of the policy, and the insured has not undergone a life expectancy evaluation for settlement in connection with the issuance of the policy.

(b) Copies of the independent evidence described in subdivision (a)(3)(B) of this section and documents required by subsection 3842(a) of this title shall be submitted to the insurer when the life settlement provider or other party entering into a life settlement contract with a policy owner submits a request to the insurer for verification of coverage. The copies shall be accompanied by a letter of attestation from the life settlement provider that the copies are true and correct copies of the documents received by the life settlement provider.

(c) No insurer may, as a condition of responding to a request for verification of coverage or effecting the transfer of a policy pursuant to a life settlement contract, require that the policy owner, insured, life settlement provider, or life settlement broker sign any forms or disclosures of consent or waiver that have not been expressly approved by the commissioner for use in connection with life settlement contracts in this state.

(d) Upon receipt of a properly completed request for change of ownership or beneficiary of a policy, the insurer shall respond in writing within 30 calendar days with written acknowledgment confirming that the change has been effected or specifying the reasons why the requested change cannot be processed. The insurer shall not unreasonably delay effecting change of ownership or beneficiary and shall not otherwise seek to interfere with any life settlement contract lawfully entered into in this state.

(e) It shall be a violation of this section to enter into a life settlement contract in reliance on the conditions established in subdivision (a)(3)(B) of this section if such condition commenced or occurred prior to the issuance of the insurance policy or certificate.

(f) The commissioner shall adopt rules regulating the marketing and solicitation of life settlement products.
Vt. Stat. Ann. tit. 8, § 3844. Prohibited practices.(a) It is a violation of this subchapter for any person to:

(1) commit any fraudulent life settlement acts;

(2) enter into any practice, agreement, arrangement, or transaction which results in or is intended to result in the issuance of stranger-originated life insurance or STOLI; or

(3) enter, within a five-year period commencing with the date of issuance of the insurance policy or certificate, into a life settlement contract unless the policy owner certifies to the life settlement provider that one or more of the following conditions have commenced or occurred after the date of issuance of the insurance policy or certificate and within the five-year period:

(A) The policy was issued upon the policy owner's exercise of conversion rights arising out of a group or individual policy, provided the total of the time covered under the conversion policy plus the time covered under the prior policy is at least 60 months. The time covered under a group policy shall be calculated without regard to any change in insurance carriers, provided the coverage has been continuous and under the same group sponsorship;

(B) The policy owner submits independent evidence to the life settlement provider that one or more of the following conditions have commenced or occurred after the date of issuance of the insurance policy or certificate and within the five-year period:

(i) The policy owner or insured is terminally or chronically ill;

(ii) The policy owner's spouse dies;

(iii) The policy owner divorces his or her spouse;

(iv) The policy owner retires from full-time employment;

(v) The policy owner becomes physically or mentally disabled and a physician determines that the disability prevents the policy owner from maintaining full-time employment;

(vi) A final order, judgment, or decree is entered by a court of competent jurisdiction, on the application of a creditor of the policy owner, adjudicating the policy owner bankrupt or insolvent or approving a petition seeking reorganization of the policy owner or appointing a receiver, trustee, or liquidator to all or a substantial part of the policy owner's assets; or

(vii) The policy owner has suffered a significant economic reversal, as demonstrated by a 50 percent decline in the policy owner's annual adjusted gross income, or by a 50 percent decline in the policy owner's net worth, or as demonstrated by other facts and circumstances approved by the commissioner; or

(C) The policy owner enters into a life settlement contract more than two years after the date of issuance of a policy and, with respect to the policy, at all times prior to the date that is two years after policy issuance, the following conditions are met:

(i) Policy premiums have been funded exclusively with unencumbered assets, including an interest in the life insurance policy being financed only to the extent of its net cash surrender value, provided by or with full recourse liability incurred by the insured or a person described in subdivision 3835(9)(C)(v) of this title;

(ii) There is no agreement or understanding with any other person to guarantee any such liability or to purchase or stand ready to purchase the policy, including through an assumption or forgiveness of the loan; and

(iii) A life settlement provider or a life settlement broker has not conducted a life expectancy evaluation of the insured in connection with a proposed settlement of the policy, and the insured has not undergone a life expectancy evaluation for settlement in connection with the issuance of the policy.

(b) Copies of the independent evidence described in subdivision (a)(3)(B) of this section and documents required by subsection 3842(a) of this title shall be submitted to the insurer when the life settlement provider or other party entering into a life settlement contract with a policy owner submits a request to the insurer for verification of coverage. The copies shall be accompanied by a letter of attestation from the life settlement provider that the copies are true and correct copies of the documents received by the life settlement provider.

(c) No insurer may, as a condition of responding to a request for verification of coverage or effecting the transfer of a policy pursuant to a life settlement contract, require that the policy owner, insured, life settlement provider, or life settlement broker sign any forms or disclosures of consent or waiver that have not been expressly approved by the commissioner for use in connection with life settlement contracts in this state.

(d) Upon receipt of a properly completed request for change of ownership or beneficiary of a policy, the insurer shall respond in writing within 30 calendar days with written acknowledgment confirming that the change has been effected or specifying the reasons why the requested change cannot be processed. The insurer shall not unreasonably delay effecting change of ownership or beneficiary and shall not otherwise seek to interfere with any life settlement contract lawfully entered into in this state.

(e) It shall be a violation of this section to enter into a life settlement contract in reliance on the conditions established in subdivision (a)(3)(B) of this section if such condition commenced or occurred prior to the issuance of the insurance policy or certificate.

(f) The commissioner shall adopt rules regulating the marketing and solicitation of life settlement products.

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Vt. Stat. Ann. tit. 8, § 3845. Prohibited practices and conflicts of interest.(a) With respect to any life settlement contract or insurance policy, no life settlement broker shall solicit an offer from, effectuate a life settlement with, or make a sale to any life settlement provider, financing entity, or related provider trust that is controlling, controlled by, or under common control with such life settlement broker.

(b) No broker shall have a financial relationship or affiliation with a life settlement provider unless the broker fully discloses such relationship or affiliation. A broker shall not participate in or form a financial arrangement or affiliation with a life settlement provider if such arrangement or affiliation conflicts with the broker's fiduciary duty to the policy owner.

(c) With respect to any life settlement contract or insurance policy, no life settlement provider shall knowingly enter into a life settlement contract with a policy owner if, in connection with such life settlement contract, anything of value will be paid to a life settlement broker that is controlling, controlled by, or under common control with such life settlement provider, the life settlement purchaser, life settlement investment agent, a financing entity, or a related provider trust that is involved in such life settlement contract.

(d) A violation of subsection (a), (b), or (c) of this section shall be deemed a fraudulent life settlement act.

(e) No life settlement provider shall enter into a life settlement contract unless the life settlement promotional, advertising, and marketing materials, as may be prescribed by regulation, have been filed with the commissioner. In no event shall any marketing materials expressly reference that the insurance is "free" for any period of time. The inclusion of any reference in the marketing materials that would cause a policy owner to reasonably believe that the insurance is free for any period of time shall be considered a violation of this subchapter.

(f) No life insurance producer, insurance company, life settlement broker, or life settlement provider shall make any statement or representation to the applicant or policyholder in connection with the sale or financing of a life insurance policy to the effect that the insurance is free or without cost to the policyholder for any period of time unless provided in the policy.
Vt. Stat. Ann. tit. 8, § 3845. Prohibited practices and conflicts of interest.(a) With respect to any life settlement contract or insurance policy, no life settlement broker shall solicit an offer from, effectuate a life settlement with, or make a sale to any life settlement provider, financing entity, or related provider trust that is controlling, controlled by, or under common control with such life settlement broker.

(b) No broker shall have a financial relationship or affiliation with a life settlement provider unless the broker fully discloses such relationship or affiliation. A broker shall not participate in or form a financial arrangement or affiliation with a life settlement provider if such arrangement or affiliation conflicts with the broker's fiduciary duty to the policy owner.

(c) With respect to any life settlement contract or insurance policy, no life settlement provider shall knowingly enter into a life settlement contract with a policy owner if, in connection with such life settlement contract, anything of value will be paid to a life settlement broker that is controlling, controlled by, or under common control with such life settlement provider, the life settlement purchaser, life settlement investment agent, a financing entity, or a related provider trust that is involved in such life settlement contract.

(d) A violation of subsection (a), (b), or (c) of this section shall be deemed a fraudulent life settlement act.

(e) No life settlement provider shall enter into a life settlement contract unless the life settlement promotional, advertising, and marketing materials, as may be prescribed by regulation, have been filed with the commissioner. In no event shall any marketing materials expressly reference that the insurance is "free" for any period of time. The inclusion of any reference in the marketing materials that would cause a policy owner to reasonably believe that the insurance is free for any period of time shall be considered a violation of this subchapter.

(f) No life insurance producer, insurance company, life settlement broker, or life settlement provider shall make any statement or representation to the applicant or policyholder in connection with the sale or financing of a life insurance policy to the effect that the insurance is free or without cost to the policyholder for any period of time unless provided in the policy.

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Vt. Stat. Ann. tit. 8, § 3846. Advertising for life settlements.(a) No person engaged in the business of life settlements shall make, issue, circulate, or cause to be made, issued, or circulated, or placed before the public, in a newspaper, magazine, or other publication, in the form of a notice, circular, pamphlet, letter, or poster or over any radio station or television station, or by Internet, or in any other way, any estimate, illustration, circular, statement, sales presentation, omission, or comparison, which:

(1) misrepresents or fails to adequately disclose the benefits, advantages, conditions, exclusions, limitations, or terms of any life settlement contract;

(2) uses any name or title of any life settlement contract or class of life settlement contracts misrepresenting the true nature thereof; or

(3) is a misrepresentation for the purpose of inducing or tending to induce a policy owner to enter into a life settlement contract in violation of the provisions of this chapter;

(4) is inaccurate, untruthful, deceptive or misleading in fact or by implication. The form and content of an advertisement of a life settlement contract shall be sufficiently complete and clear so as to avoid deception. It shall not have the capacity or tendency to mislead or deceive. Whether an advertisement has the capacity or tendency to mislead or deceive shall be determined from the overall impression that the advertisement may be reasonably expected to create upon a person of average education or intelligence within the segment of the public to which it is directed;

(5) directly or indirectly markets, advertises, solicits, or otherwise promotes the purchase of a policy for the purpose or, or with an emphasis on entering into a life settlement contract; or

(6) uses the word "free," "no cost," "without cost," "no additional cost," "at no extra cost," or words of similar import in the marketing, advertising, soliciting or otherwise promoting of the purchase of a policy.

(b) Every life settlement licensee shall establish and at all times maintain a system of control over the content, form, and method of dissemination of all advertisements of its contracts, products, and services. All advertisements, regardless of who wrote, created, designed, or presented them, shall be the responsibility of the life settlement licensees as well as the individual who created or presented the advertisement. A system of control shall include regular routine notification, at least once a year, to agents and others authorized by the life settlement licensee who disseminate advertisements of the requirements and procedures for approval by the life settlement licensee prior to the use of any advertisements not furnished by the life settlement licensee.

(c) The name of the life settlement licensee shall be clearly identified in all advertisements about the licensee or its life settlement contract, products, or services, and if any specific life settlement contract is advertised, the life settlement contract shall be identified either by form number or some other appropriate description. If an application is part of the advertisement, the name of the life settlement provider shall be shown on the application.

(d) If the advertising emphasizes the dollar amounts available to policy owners, the advertising shall disclose the average purchase price as a percent of face value obtained by policy owners contracting with the licensee during the past six months.

(e) The fact that the life settlement contract offered is made available for inspection prior to consummation of the sale, or that an offer is made to refund the payment if the policy owner is not satisfied, or that the life settlement contract includes a "free look" period that satisfies or exceeds legal requirements does not remedy any inaccurate, untruthful, deceptive or misleading statements.
Vt. Stat. Ann. tit. 8, § 3846. Advertising for life settlements.(a) No person engaged in the business of life settlements shall make, issue, circulate, or cause to be made, issued, or circulated, or placed before the public, in a newspaper, magazine, or other publication, in the form of a notice, circular, pamphlet, letter, or poster or over any radio station or television station, or by Internet, or in any other way, any estimate, illustration, circular, statement, sales presentation, omission, or comparison, which:

(1) misrepresents or fails to adequately disclose the benefits, advantages, conditions, exclusions, limitations, or terms of any life settlement contract;

(2) uses any name or title of any life settlement contract or class of life settlement contracts misrepresenting the true nature thereof; or

(3) is a misrepresentation for the purpose of inducing or tending to induce a policy owner to enter into a life settlement contract in violation of the provisions of this chapter;

(4) is inaccurate, untruthful, deceptive or misleading in fact or by implication. The form and content of an advertisement of a life settlement contract shall be sufficiently complete and clear so as to avoid deception. It shall not have the capacity or tendency to mislead or deceive. Whether an advertisement has the capacity or tendency to mislead or deceive shall be determined from the overall impression that the advertisement may be reasonably expected to create upon a person of average education or intelligence within the segment of the public to which it is directed;

(5) directly or indirectly markets, advertises, solicits, or otherwise promotes the purchase of a policy for the purpose or, or with an emphasis on entering into a life settlement contract; or

(6) uses the word "free," "no cost," "without cost," "no additional cost," "at no extra cost," or words of similar import in the marketing, advertising, soliciting or otherwise promoting of the purchase of a policy.

(b) Every life settlement licensee shall establish and at all times maintain a system of control over the content, form, and method of dissemination of all advertisements of its contracts, products, and services. All advertisements, regardless of who wrote, created, designed, or presented them, shall be the responsibility of the life settlement licensees as well as the individual who created or presented the advertisement. A system of control shall include regular routine notification, at least once a year, to agents and others authorized by the life settlement licensee who disseminate advertisements of the requirements and procedures for approval by the life settlement licensee prior to the use of any advertisements not furnished by the life settlement licensee.

(c) The name of the life settlement licensee shall be clearly identified in all advertisements about the licensee or its life settlement contract, products, or services, and if any specific life settlement contract is advertised, the life settlement contract shall be identified either by form number or some other appropriate description. If an application is part of the advertisement, the name of the life settlement provider shall be shown on the application.

(d) If the advertising emphasizes the dollar amounts available to policy owners, the advertising shall disclose the average purchase price as a percent of face value obtained by policy owners contracting with the licensee during the past six months.

(e) The fact that the life settlement contract offered is made available for inspection prior to consummation of the sale, or that an offer is made to refund the payment if the policy owner is not satisfied, or that the life settlement contract includes a "free look" period that satisfies or exceeds legal requirements does not remedy any inaccurate, untruthful, deceptive or misleading statements.

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Vt. Stat. Ann. tit. 8, § 3847. Fraud prevention and control.(a)(1) A person shall not commit a fraudulent life settlement act.

(2) A person shall not knowingly or with reason to know interfere with the enforcement of the provisions of this subchapter or investigations of suspected or actual violations of this subchapter.

(3) It shall be a violation of this subchapter for a person in the business of life settlements who with knowledge or who reasonably should know to permit any person convicted of a felony involving dishonesty or breach of trust to participate in the business of life settlements.

(b)(1) Life settlement contracts and applications for life settlements, regardless of the form of transmission, shall contain the following statement or a substantially similar statement:

"Any person who knowingly presents false information in an application for insurance or life settlement contract may be guilty of a crime and may be subject to fines and confinement in prison."

(2) The lack of a statement as required in subdivision (1) of this subsection does not constitute a defense in any prosecution for a fraudulent life settlement act.

(c)(1) Any person engaged in the business of life settlements having knowledge or a reasonable suspicion that a fraudulent life settlement act is being, will be, or has been committed shall immediately provide to the commissioner such information as required and in a manner prescribed by the commissioner by rule or order.

(2) Any other person having knowledge or a reasonable belief that a fraudulent life settlement act is being, will be, or has been committed may provide to the commissioner such information required and in a manner prescribed by the commissioner by order or rule.

(d)(1) No civil liability shall be imposed on and no cause of action shall arise from a person's furnishing information concerning suspected, anticipated, or completed fraudulent life settlement acts or suspected or completed fraudulent insurance acts if the information is provided to or received from:

(A) the commissioner or the commissioner's employees, agents, or representatives;

(B) federal, state, or local law enforcement or regulatory officials or their employees, agents, or representatives;

(C) a person involved in the prevention and detection of fraudulent viatical settlement acts or that person's agents, employees, or representatives;

(D) the National Association of Insurance Commissioners, the Financial Industry Regulatory Authority (FINRA), the North American Securities Administrators Association (NASAA), or their employees, agents, or representatives, or another regulatory body overseeing life insurance, life settlements, or securities or investment fraud; or

(E) the life insurer that issued the life insurance policy covering the life of the insured.

(2) Subdivision (1) of this subsection shall not apply to statements made with actual malice. In an action brought against a person for filing a report or furnishing other information concerning a fraudulent life settlement act, the party bringing the action shall plead specifically any allegation that subdivision (1) of this subsection does not apply because the person filing the report or furnishing the information did so with actual malice.

(3) A person furnishing information as identified in subdivision (1) of this subsection shall be entitled to an award of attorney's fees and costs if he or she is the prevailing party in a civil cause of action for libel, slander, or any other relevant tort arising out of activities in carrying out the provisions of this subchapter and if the party bringing the action was not substantially justified in doing so. For the purposes of this section, a proceeding is "substantially justified" if it had a reasonable basis in law or fact at the time that it was initiated. However, such an award does not apply to any person furnishing information concerning his or her own fraudulent life settlement acts.

(4) This section does not abrogate or modify common law or statutory privileges or immunities enjoyed by a person described in subdivision (1) of this subsection.

(5) Confidentiality.

(A) The documents and evidence provided pursuant to this subsection or obtained by the commissioner in an investigation of suspected or actual fraudulent life settlement acts shall be privileged and confidential and shall not be a public record and shall not be subject to discovery or subpoena in any private civil action.

(B) Subdivision (A) of this subdivision does not prohibit release by the commissioner of documents and evidence obtained in an investigation of suspected or actual fraudulent life settlement acts:

(i) in administrative or judicial proceedings to enforce laws administered by the commissioner;

(ii) to federal, state, or local law enforcement or regulatory agencies, to an organization established for the purpose of detecting and preventing fraudulent viatical settlement acts, or to the National Association of Insurance Commissioners; or

(iii) at the discretion of the commissioner, to a person in the business of life settlements that is aggrieved by a fraudulent life settlement act.

(C) Release of documents and evidence under subdivision (B) of this subdivision does not abrogate or modify the privilege granted in subdivision (A) of this subdivision.

(6) This subchapter shall not:

(A) preempt the authority or relieve the duty of other law enforcement or regulatory agencies to investigate, examine, and prosecute suspected violations of law;

(B) prevent or prohibit a person from disclosing voluntarily or otherwise information concerning life settlement fraud to a law enforcement or regulatory agency other than the department of banking, insurance, securities, and health care administration; or

(C) limit the powers granted elsewhere by the laws of this state to the commissioner or an insurance fraud unit to investigate and examine possible violations of law and to take appropriate action against wrongdoers.

(7)(A) Life settlement providers shall have in place antifraud initiatives reasonably calculated to detect, prosecute, and prevent fraudulent life settlement acts. The commissioner may, at his or her discretion, order or a licensee may request and the commissioner may grant such modifications of the required initiatives listed in subdivision (B) of this subdivision (7) as necessary to ensure an effective antifraud program. The modifications may be more or less restrictive than the required initiatives so long as the modifications may reasonably be expected to accomplish the purpose of this section.

(B) Antifraud initiatives shall include:

(i) the use of fraud investigators, who may be life settlement provider employees or independent contractors; and

(ii) an antifraud plan, which shall be submitted to the department at the request of the commissioner. The antifraud plan shall include:

(I) a description of the procedures for detecting and investigating possible fraudulent life settlement acts and procedures for resolving material inconsistencies between medical records and insurance applications;

(II) a description of the procedures for reporting possible fraudulent life settlement acts to the commissioner;

(III) a description of the plan for antifraud education and training of underwriters and other personnel; and

(IV) a description or chart outlining the organizational arrangement of the antifraud personnel who are responsible for the investigation and reporting of possible fraudulent life settlement acts and investigating unresolved material inconsistencies between medical records and insurance applications.

(e) Antifraud plans submitted to the commissioner shall be privileged and confidential and shall not be a public record and shall not be subject to discovery or subpoena in a civil or criminal action.
Vt. Stat. Ann. tit. 8, § 3847. Fraud prevention and control.(a)(1) A person shall not commit a fraudulent life settlement act.

(2) A person shall not knowingly or with reason to know interfere with the enforcement of the provisions of this subchapter or investigations of suspected or actual violations of this subchapter.

(3) It shall be a violation of this subchapter for a person in the business of life settlements who with knowledge or who reasonably should know to permit any person convicted of a felony involving dishonesty or breach of trust to participate in the business of life settlements.

(b)(1) Life settlement contracts and applications for life settlements, regardless of the form of transmission, shall contain the following statement or a substantially similar statement:

"Any person who knowingly presents false information in an application for insurance or life settlement contract may be guilty of a crime and may be subject to fines and confinement in prison."

(2) The lack of a statement as required in subdivision (1) of this subsection does not constitute a defense in any prosecution for a fraudulent life settlement act.

(c)(1) Any person engaged in the business of life settlements having knowledge or a reasonable suspicion that a fraudulent life settlement act is being, will be, or has been committed shall immediately provide to the commissioner such information as required and in a manner prescribed by the commissioner by rule or order.

(2) Any other person having knowledge or a reasonable belief that a fraudulent life settlement act is being, will be, or has been committed may provide to the commissioner such information required and in a manner prescribed by the commissioner by order or rule.

(d)(1) No civil liability shall be imposed on and no cause of action shall arise from a person's furnishing information concerning suspected, anticipated, or completed fraudulent life settlement acts or suspected or completed fraudulent insurance acts if the information is provided to or received from:

(A) the commissioner or the commissioner's employees, agents, or representatives;

(B) federal, state, or local law enforcement or regulatory officials or their employees, agents, or representatives;

(C) a person involved in the prevention and detection of fraudulent viatical settlement acts or that person's agents, employees, or representatives;

(D) the National Association of Insurance Commissioners, the Financial Industry Regulatory Authority (FINRA), the North American Securities Administrators Association (NASAA), or their employees, agents, or representatives, or another regulatory body overseeing life insurance, life settlements, or securities or investment fraud; or

(E) the life insurer that issued the life insurance policy covering the life of the insured.

(2) Subdivision (1) of this subsection shall not apply to statements made with actual malice. In an action brought against a person for filing a report or furnishing other information concerning a fraudulent life settlement act, the party bringing the action shall plead specifically any allegation that subdivision (1) of this subsection does not apply because the person filing the report or furnishing the information did so with actual malice.

(3) A person furnishing information as identified in subdivision (1) of this subsection shall be entitled to an award of attorney's fees and costs if he or she is the prevailing party in a civil cause of action for libel, slander, or any other relevant tort arising out of activities in carrying out the provisions of this subchapter and if the party bringing the action was not substantially justified in doing so. For the purposes of this section, a proceeding is "substantially justified" if it had a reasonable basis in law or fact at the time that it was initiated. However, such an award does not apply to any person furnishing information concerning his or her own fraudulent life settlement acts.

(4) This section does not abrogate or modify common law or statutory privileges or immunities enjoyed by a person described in subdivision (1) of this subsection.

(5) Confidentiality.

(A) The documents and evidence provided pursuant to this subsection or obtained by the commissioner in an investigation of suspected or actual fraudulent life settlement acts shall be privileged and confidential and shall not be a public record and shall not be subject to discovery or subpoena in any private civil action.

(B) Subdivision (A) of this subdivision does not prohibit release by the commissioner of documents and evidence obtained in an investigation of suspected or actual fraudulent life settlement acts:

(i) in administrative or judicial proceedings to enforce laws administered by the commissioner;

(ii) to federal, state, or local law enforcement or regulatory agencies, to an organization established for the purpose of detecting and preventing fraudulent viatical settlement acts, or to the National Association of Insurance Commissioners; or

(iii) at the discretion of the commissioner, to a person in the business of life settlements that is aggrieved by a fraudulent life settlement act.

(C) Release of documents and evidence under subdivision (B) of this subdivision does not abrogate or modify the privilege granted in subdivision (A) of this subdivision.

(6) This subchapter shall not:

(A) preempt the authority or relieve the duty of other law enforcement or regulatory agencies to investigate, examine, and prosecute suspected violations of law;

(B) prevent or prohibit a person from disclosing voluntarily or otherwise information concerning life settlement fraud to a law enforcement or regulatory agency other than the department of banking, insurance, securities, and health care administration; or

(C) limit the powers granted elsewhere by the laws of this state to the commissioner or an insurance fraud unit to investigate and examine possible violations of law and to take appropriate action against wrongdoers.

(7)(A) Life settlement providers shall have in place antifraud initiatives reasonably calculated to detect, prosecute, and prevent fraudulent life settlement acts. The commissioner may, at his or her discretion, order or a licensee may request and the commissioner may grant such modifications of the required initiatives listed in subdivision (B) of this subdivision (7) as necessary to ensure an effective antifraud program. The modifications may be more or less restrictive than the required initiatives so long as the modifications may reasonably be expected to accomplish the purpose of this section.

(B) Antifraud initiatives shall include:

(i) the use of fraud investigators, who may be life settlement provider employees or independent contractors; and

(ii) an antifraud plan, which shall be submitted to the department at the request of the commissioner. The antifraud plan shall include:

(I) a description of the procedures for detecting and investigating possible fraudulent life settlement acts and procedures for resolving material inconsistencies between medical records and insurance applications;

(II) a description of the procedures for reporting possible fraudulent life settlement acts to the commissioner;

(III) a description of the plan for antifraud education and training of underwriters and other personnel; and

(IV) a description or chart outlining the organizational arrangement of the antifraud personnel who are responsible for the investigation and reporting of possible fraudulent life settlement acts and investigating unresolved material inconsistencies between medical records and insurance applications.

(e) Antifraud plans submitted to the commissioner shall be privileged and confidential and shall not be a public record and shall not be subject to discovery or subpoena in a civil or criminal action.

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Vt. Stat. Ann. tit. 8, § 3861. Discrimination and rebates prohibited.A fire or casualty insurance company doing business in the state shall not make or permit any distinction or discrimination in favor of individuals, between insureds of the same class, in the amount or payment of premiums, or rates charged for policies of insurance, or in the dividends or other benefits payable thereon, or in any of the terms and conditions of the contracts it makes; nor shall a fire or casualty insurance company doing business in this state or an agent thereof make a contract of insurance, or agreement as to such contract, other than as plainly expressed in the policy issued thereon; nor shall such company or agent pay or allow, or offer to pay or allow, and no person shall accept as an inducement to insurance, a rebate or premium payable on the policy, or a special favor or advantage in the dividends or other benefits to accrue thereon, or any valuable consideration or inducement not specified in the policy contract of insurance. A person who violates any of the p

rovisions of this section shall be subject to an administrative penalty of not more than $2,000.00.
Vt. Stat. Ann. tit. 8, § 3861. Discrimination and rebates prohibited.A fire or casualty insurance company doing business in the state shall not make or permit any distinction or discrimination in favor of individuals, between insureds of the same class, in the amount or payment of premiums, or rates charged for policies of insurance, or in the dividends or other benefits payable thereon, or in any of the terms and conditions of the contracts it makes; nor shall a fire or casualty insurance company doing business in this state or an agent thereof make a contract of insurance, or agreement as to such contract, other than as plainly expressed in the policy issued thereon; nor shall such company or agent pay or allow, or offer to pay or allow, and no person shall accept as an inducement to insurance, a rebate or premium payable on the policy, or a special favor or advantage in the dividends or other benefits to accrue thereon, or any valuable consideration or inducement not specified in the policy contract of insurance. A person who violates any of the p

rovisions of this section shall be subject to an administrative penalty of not more than $2,000.00.

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Vt. Stat. Ann. tit. 8, § 4083. Discrimination prohibited.No insurer doing in this state the business specified in subdivision 3301(a)(2) of this title shall make or permit any unfair discrimination between individuals of substantially the same hazard in the amount of premium rates charged for any policy or contract of such insurance or in the benefits payable thereunder. This section shall not prohibit different premium rates, different benefits, or different underwriting procedure for individuals insured under group, family expense, franchise, or blanket plans of insurance.

Vt. Stat. Ann. tit. 8, § 4083. Discrimination prohibited.No insurer doing in this state the business specified in subdivision 3301(a)(2) of this title shall make or permit any unfair discrimination between individuals of substantially the same hazard in the amount of premium rates charged for any policy or contract of such insurance or in the benefits payable thereunder. This section shall not prohibit different premium rates, different benefits, or different underwriting procedure for individuals insured under group, family expense, franchise, or blanket plans of insurance.

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Vt. Stat. Ann. tit. 8, § 4084. Advertising practices.No company doing business in this state, and no insurance agent or broker shall use in connection with the solicitation of health insurance any advertising copy or advertising practice or any plan of solicitation which is materially misleading or deceptive. An advertising copy or advertising practice or plan of solicitation shall be considered to be materially misleading or deceptive if by implication or otherwise it transmits information in such manner or of such substance that a prospective applicant for health insurance may be misled thereby to his or her material damage. If the commissioner finds that any such advertising copy or advertising practice or plan of solicitation is materially misleading or deceptive he or she shall order the company or the agent or broker using such copy or practice or plan to cease and desist from such use. Before making any such finding and order, the commissioner shall give notice, not less than 10 days in advance, and a hearing to the company, ag

ent, or broker affected. If the commissioner finds, after due notice and hearing, that any authorized insurer, licensed insurance agent, or licensed insurance broker has wilfully violated any such order to cease and desist he or she may suspend or revoke the license of such insurer, agent or broker.

Vt. Stat. Ann. tit. 8, § 4084. Advertising practices.No company doing business in this state, and no insurance agent or broker shall use in connection with the solicitation of health insurance any advertising copy or advertising practice or any plan of solicitation which is materially misleading or deceptive. An advertising copy or advertising practice or plan of solicitation shall be considered to be materially misleading or deceptive if by implication or otherwise it transmits information in such manner or of such substance that a prospective applicant for health insurance may be misled thereby to his or her material damage. If the commissioner finds that any such advertising copy or advertising practice or plan of solicitation is materially misleading or deceptive he or she shall order the company or the agent or broker using such copy or practice or plan to cease and desist from such use. Before making any such finding and order, the commissioner shall give notice, not less than 10 days in advance, and a hearing to the company, ag

ent, or broker affected. If the commissioner finds, after due notice and hearing, that any authorized insurer, licensed insurance agent, or licensed insurance broker has wilfully violated any such order to cease and desist he or she may suspend or revoke the license of such insurer, agent or broker.

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Vt. Stat. Ann. tit. 8, § 4085. Rebates prohibited.No insurer doing business in this state and no insurance agent or broker shall offer, promise, allow, give, set off or pay, directly or indirectly, any rebate of or part of the premium payable on the policy, or on any policy or agent's commission thereon or earnings, profits, dividends or other benefits founded, arising, accruing or to accrue thereon or therefrom, or any special advantage in date of policy or age of issue, or any paid employment or contract for services of any kind or any other valuable consideration or inducement to or for insurance on any risk in this state, now or hereafter to be written, or for or upon any renewal of any such insurance, which is not specified in the policy contract of insurance, or offer, promise, give, option, sell, purchase any stocks, bonds, securities or property or any dividends or profits accruing or to accrue thereon, or other thing of value whatsoever as inducement to insurance or in connection therewith, or any renewal thereof, which is

not specified in the policy. No insured person or party or applicant for insurance shall directly or indirectly receive or accept, or agree to receive or accept any rebate of premium or of any part thereof or all or any part of any agent's or broker's commission thereon, or any favor or advantage, or share in any benefit to accrue under any policy of insurance, or any valuable consideration or inducement, other than such as is specified in the policy. Nothing in this section shall be construed as prohibiting the payment of commission or other compensation to any duly licensed agent or broker; or as prohibiting any insurer from allowing or returning to its participating policyholders dividends, savings, or unused premium deposits; or as prohibiting any insurer from returning or otherwise abating, in full or in part, the premiums of its policyholders out of surplus accumulated from nonparticipating insurance, or as prohibiting the taking of a bona fide obligation, with interest at not e

xceeding six percent per annum, in payment of any premium.
Vt. Stat. Ann. tit. 8, § 4085. Rebates prohibited.No insurer doing business in this state and no insurance agent or broker shall offer, promise, allow, give, set off or pay, directly or indirectly, any rebate of or part of the premium payable on the policy, or on any policy or agent's commission thereon or earnings, profits, dividends or other benefits founded, arising, accruing or to accrue thereon or therefrom, or any special advantage in date of policy or age of issue, or any paid employment or contract for services of any kind or any other valuable consideration or inducement to or for insurance on any risk in this state, now or hereafter to be written, or for or upon any renewal of any such insurance, which is not specified in the policy contract of insurance, or offer, promise, give, option, sell, purchase any stocks, bonds, securities or property or any dividends or profits accruing or to accrue thereon, or other thing of value whatsoever as inducement to insurance or in connection therewith, or any renewal thereof, which is

not specified in the policy. No insured person or party or applicant for insurance shall directly or indirectly receive or accept, or agree to receive or accept any rebate of premium or of any part thereof or all or any part of any agent's or broker's commission thereon, or any favor or advantage, or share in any benefit to accrue under any policy of insurance, or any valuable consideration or inducement, other than such as is specified in the policy. Nothing in this section shall be construed as prohibiting the payment of commission or other compensation to any duly licensed agent or broker; or as prohibiting any insurer from allowing or returning to its participating policyholders dividends, savings, or unused premium deposits; or as prohibiting any insurer from returning or otherwise abating, in full or in part, the premiums of its policyholders out of surplus accumulated from nonparticipating insurance, or as prohibiting the taking of a bona fide obligation, with interest at not e

xceeding six percent per annum, in payment of any premium.

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Vt. Stat. Ann. tit. 8, § 4089a. Mental health care services review.(a) The purposes of this section are to:

(1) promote the delivery of quality mental health care in a cost-effective manner;

(2) foster the practice of mental health services review as a professional collaborative process, the primary objective of which is to enhance the effectiveness of clinical treatment;

(3) protect clients/patients, employers and mental health care providers by ensuring that review agents are qualified to perform service review activities and to make informed decisions on the appropriateness of mental health care; and

(4) ensure the confidentiality of clients/patients' mental health records in the performance of service review activities in accordance with applicable state and federal laws.

(b) Definitions: As used in this section:

(1) "License" means a review agent's license granted by the commissioner.

(2) "Mental health care provider" or "mental health care professional" means any person, corporation, facility or institution certified or licensed by this state to provide mental health care services, including but not limited to a physician, a nurse with recognized psychiatric specialties, hospital or other health care facility, psychologist, clinical social worker, mental health counselor, alcohol or drug abuse counselor, or an employee or agent of such provider acting in the course and scope of employment or an agency related to mental health care services.

(3) "Mental health care services" mean acts of diagnosis, treatment, evaluation or advice or any other acts permissible under the health care laws of Vermont whether performed in an outpatient or institutional setting, and include alcohol and drug abuse treatment.

(4) "Review agent" means a person or entity performing service review activities who is either affiliated with, under contract with, or acting on behalf of a business entity in this state; or a third party who provides or administers mental health care benefits to citizens of Vermont, including a health insurer, nonprofit health service plan, health insurance service organization, health maintenance organization or preferred provider organization, including organizations that rely upon primary care physicians to coordinate delivery of services, authorized to offer health insurance policies or contracts in Vermont.

(5) "Service review" means any system for reviewing the appropriate and efficient allocation of mental health care services given or proposed to be given to a patient or group of patients for the purpose of recommending or determining whether such services should be reimbursed, covered or provided by an insurer, plan or other entity or person and includes activities of utilization review and managed care, but does not include professional peer review which does not affect reimbursement for or provision of services.

(c) Any person who approves or denies payment, or who recommends approval or denial of payment for mental health care services, or whose review results in approval or denial of payment for mental health services on a case by case basis, may not review such services in this state unless the commissioner has granted the person a review agent's license. On or before January 1, 1995, the commissioner shall adopt rules to implement the provisions of this section, including the procedures and standards for licensure. The rules shall differentiate between health maintenance organizations licensed to do business within this state and other forms of utilization review. The rules shall establish:

(1) A requirement that within 10 business days after request the review agent make available at no cost to its clients/patients and providers affected by its service review activities, the specific review criteria and standards, credentials of the reviewing professionals, and procedures and methods to be used in evaluating proposed or delivered mental health care services.

(2) A time period within which any determination regarding the provision or reimbursement of mental health services shall be made.

(3) A requirement that any determination regarding mental health care services rendered or to be rendered to a client/patient which may result in a denial of third-party reimbursement or a denial of pre-certification for that service shall include the evaluation, findings, and concurrence of a mental health professional whose training and expertise is at least comparable to that of the treating clinician.

(4) The type, qualifications, and number of personnel required to perform service review activities.

(5) A requirement that a determination by a review agent that care rendered or to be rendered is inappropriate shall not be made until the review agent has communicated with the patient's attending mental health professional concerning that medical care. The review shall be prospective or concurrent with the treatment.

(6) A requirement that any determination that care rendered or to be rendered is inappropriate shall include the written evaluation and findings of the review agent.

(7) A procedure for clients or patients or both, mental health professionals, or hospitals to seek prompt reconsideration before an independent review organization pursuant to section 4089f of this title of an adverse decision by a review agent. The external reviewer engaged by the independent review organization shall have training and expertise at least comparable to that of the treating clinician.

(8) Policies and procedures to ensure that all applicable state and federal laws to protect the confidentiality of individual mental health records are followed.

(9) Policies and procedures which ensure appropriate notification and concurrence of providers and clients/patients before client/patient interviews are conducted by the review agent.

(10) Prohibition of an agreement between the review agent and a business entity or third-party payor in which payment to the review agent includes an incentive or contingent fee arrangement based on the reduction of mental health care services, reduction of length of stay, reduction of treatment, or treatment setting selected. Nothing in this subdivision shall prohibit capitation arrangements for reimbursement for mental health services. Notwithstanding the foregoing, a clinical decision made by the attending mental health professional regarding continued treatment shall not be construed as a denial of services subject to the provisions of this section.

(d) Reviewing agents shall be subject to the provisions of chapter 129 of this title governing unfair insurance trade practices.

(e) Interim provisions: Review agents who are operating in Vermont prior to the adoption of rules pursuant to this section may continue to conduct review activities until the commissioner adopts rules and acts upon the application submitted by the review agent. Review agents operating pursuant to this subsection shall file a completed initial application within the time set forth by rule in order to continue operating until a license is granted.

(f) The commissioner shall have the authority to examine, take administrative action against and penalize review agents as provided in chapters 3, 101, and 129 of this title. A person who violates any provision of this section or who submits any false information in an application required by this section may be fined not more than $5,000.00 for each violation.

(g) Members of the independent panel of mental health care providers shall be compensated as provided in 32 V.S.A. § 1010(b) and (c).

(h) A review agent shall pay a license fee for the year of registration and a renewal fee for each year thereafter of $200.00. In addition, a review agent shall pay any additional expenses incurred by the commissioner to examine and investigate an application or an amendment to an application.

(i) The confidentiality of any health care information acquired by or provided to the independent panel of mental health professionals shall be maintained in compliance with any applicable state or federal laws. The independent panel shall not constitute a public agency under subsection 317(a) of Title 1, or a public body under section 310 of Title 1. Records of, and internal materials prepared for, specific reviews under this section shall be exempt from public disclosure under section 316 of Title 1.
Vt. Stat. Ann. tit. 8, § 4089a. Mental health care services review.(a) The purposes of this section are to:

(1) promote the delivery of quality mental health care in a cost-effective manner;

(2) foster the practice of mental health services review as a professional collaborative process, the primary objective of which is to enhance the effectiveness of clinical treatment;

(3) protect clients/patients, employers and mental health care providers by ensuring that review agents are qualified to perform service review activities and to make informed decisions on the appropriateness of mental health care; and

(4) ensure the confidentiality of clients/patients' mental health records in the performance of service review activities in accordance with applicable state and federal laws.

(b) Definitions: As used in this section:

(1) "License" means a review agent's license granted by the commissioner.

(2) "Mental health care provider" or "mental health care professional" means any person, corporation, facility or institution certified or licensed by this state to provide mental health care services, including but not limited to a physician, a nurse with recognized psychiatric specialties, hospital or other health care facility, psychologist, clinical social worker, mental health counselor, alcohol or drug abuse counselor, or an employee or agent of such provider acting in the course and scope of employment or an agency related to mental health care services.

(3) "Mental health care services" mean acts of diagnosis, treatment, evaluation or advice or any other acts permissible under the health care laws of Vermont whether performed in an outpatient or institutional setting, and include alcohol and drug abuse treatment.

(4) "Review agent" means a person or entity performing service review activities who is either affiliated with, under contract with, or acting on behalf of a business entity in this state; or a third party who provides or administers mental health care benefits to citizens of Vermont, including a health insurer, nonprofit health service plan, health insurance service organization, health maintenance organization or preferred provider organization, including organizations that rely upon primary care physicians to coordinate delivery of services, authorized to offer health insurance policies or contracts in Vermont.

(5) "Service review" means any system for reviewing the appropriate and efficient allocation of mental health care services given or proposed to be given to a patient or group of patients for the purpose of recommending or determining whether such services should be reimbursed, covered or provided by an insurer, plan or other entity or person and includes activities of utilization review and managed care, but does not include professional peer review which does not affect reimbursement for or provision of services.

(c) Any person who approves or denies payment, or who recommends approval or denial of payment for mental health care services, or whose review results in approval or denial of payment for mental health services on a case by case basis, may not review such services in this state unless the commissioner has granted the person a review agent's license. On or before January 1, 1995, the commissioner shall adopt rules to implement the provisions of this section, including the procedures and standards for licensure. The rules shall differentiate between health maintenance organizations licensed to do business within this state and other forms of utilization review. The rules shall establish:

(1) A requirement that within 10 business days after request the review agent make available at no cost to its clients/patients and providers affected by its service review activities, the specific review criteria and standards, credentials of the reviewing professionals, and procedures and methods to be used in evaluating proposed or delivered mental health care services.

(2) A time period within which any determination regarding the provision or reimbursement of mental health services shall be made.

(3) A requirement that any determination regarding mental health care services rendered or to be rendered to a client/patient which may result in a denial of third-party reimbursement or a denial of pre-certification for that service shall include the evaluation, findings, and concurrence of a mental health professional whose training and expertise is at least comparable to that of the treating clinician.

(4) The type, qualifications, and number of personnel required to perform service review activities.

(5) A requirement that a determination by a review agent that care rendered or to be rendered is inappropriate shall not be made until the review agent has communicated with the patient's attending mental health professional concerning that medical care. The review shall be prospective or concurrent with the treatment.

(6) A requirement that any determination that care rendered or to be rendered is inappropriate shall include the written evaluation and findings of the review agent.

(7) A procedure for clients or patients or both, mental health professionals, or hospitals to seek prompt reconsideration before an independent review organization pursuant to section 4089f of this title of an adverse decision by a review agent. The external reviewer engaged by the independent review organization shall have training and expertise at least comparable to that of the treating clinician.

(8) Policies and procedures to ensure that all applicable state and federal laws to protect the confidentiality of individual mental health records are followed.

(9) Policies and procedures which ensure appropriate notification and concurrence of providers and clients/patients before client/patient interviews are conducted by the review agent.

(10) Prohibition of an agreement between the review agent and a business entity or third-party payor in which payment to the review agent includes an incentive or contingent fee arrangement based on the reduction of mental health care services, reduction of length of stay, reduction of treatment, or treatment setting selected. Nothing in this subdivision shall prohibit capitation arrangements for reimbursement for mental health services. Notwithstanding the foregoing, a clinical decision made by the attending mental health professional regarding continued treatment shall not be construed as a denial of services subject to the provisions of this section.

(d) Reviewing agents shall be subject to the provisions of chapter 129 of this title governing unfair insurance trade practices.

(e) Interim provisions: Review agents who are operating in Vermont prior to the adoption of rules pursuant to this section may continue to conduct review activities until the commissioner adopts rules and acts upon the application submitted by the review agent. Review agents operating pursuant to this subsection shall file a completed initial application within the time set forth by rule in order to continue operating until a license is granted.

(f) The commissioner shall have the authority to examine, take administrative action against and penalize review agents as provided in chapters 3, 101, and 129 of this title. A person who violates any provision of this section or who submits any false information in an application required by this section may be fined not more than $5,000.00 for each violation.

(g) Members of the independent panel of mental health care providers shall be compensated as provided in 32 V.S.A. § 1010(b) and (c).

(h) A review agent shall pay a license fee for the year of registration and a renewal fee for each year thereafter of $200.00. In addition, a review agent shall pay any additional expenses incurred by the commissioner to examine and investigate an application or an amendment to an application.

(i) The confidentiality of any health care information acquired by or provided to the independent panel of mental health professionals shall be maintained in compliance with any applicable state or federal laws. The independent panel shall not constitute a public agency under subsection 317(a) of Title 1, or a public body under section 310 of Title 1. Records of, and internal materials prepared for, specific reviews under this section shall be exempt from public disclosure under section 316 of Title 1.

.

Vt. Stat. Ann. tit. 8, § 4089b. Health insurance coverage, mental health and substance abuse
(a) It is the goal of the general assembly that treatment for mental health conditions be recognized as an integral component of health care, that health insurance plans cover all necessary and appropriate medical services without imposing practices that create barriers to receiving appropriate care, and that integration of health care be recognized as the standard for care in this state.

(b) As used in this section:

(1) "Health insurance plan" means any health insurance policy or health benefit plan offered by a health insurer, as defined in 18 V.S.A. § 9402. Health insurance plan includes any health benefit plan offered or administered by the state, or any subdivision or instrumentality of the state.

(2) "Mental health condition" means any condition or disorder involving mental illness or alcohol or substance abuse that falls under any of the diagnostic categories listed in the mental disorders section of the international classification of disease, as periodically revised.

(3) "Rate, term or condition" means any lifetime or annual payment limits, deductibles, copayments, coinsurance and any other cost-sharing requirements, out-of-pocket limits, visit limits, and any other financial component of health insurance coverage that affects the insured.

(c) A health insurance plan shall provide coverage for treatment of a mental health condition and shall:

(1) not establish any rate, term, or condition that places a greater burden on an insured for access to treatment for a mental health condition than for access to treatment for other health conditions;

(2) not exclude from its network or list of authorized providers any licensed mental health or substance abuse provider located within the geographic coverage area of the health benefit plan if the provider is willing to meet the terms and conditions for participation established by the health insurer; and

(3) make any deductible or out-of-pocket limits required under a health insurance plan comprehensive for coverage of both mental health and physical health conditions.

(d)(1)(A) A health insurance plan that does not otherwise provide for management of care under the plan, or that does not provide for the same degree of management of care for all health conditions, may provide coverage for treatment of mental health conditions through a managed care organization provided that the managed care organization is in compliance with the rules adopted by the commissioner that assure that the system for delivery of treatment for mental health conditions does not diminish or negate the purpose of this section. In reviewing rates and forms pursuant to section 4062 of this title, the commissioner shall consider the compliance of the policy with the provisions of this section.

(B) The rules adopted by the commissioner shall assure that:

(i) timely and appropriate access to care is available;

(ii) the quantity, location and specialty distribution of health care providers is adequate;

(iii) administrative or clinical protocols do not serve to reduce access to medically necessary treatment for any insured;

(iv) utilization review and other administrative and clinical protocols do not deter timely and appropriate care, including emergency hospital admissions;

(v) in the case of a managed care organization which contracts with a health insurer to administer the insurer's mental health benefits, the portion of a health insurer's premium rate attributable to the coverage of mental health benefits is reviewed under sections 4062, 4513, 4584, or 5104 of this title to determine whether it is excessive, inadequate, unfairly discriminatory, unjust, unfair, inequitable, misleading or contrary to the laws of this state;

(vi) the health insurance plan is consistent with the Blueprint for Health with respect to mental health conditions, as determined by the commissioner under 18 V.S.A. § 9414(b)(2);

(vii) a quality improvement project is completed annually as a joint project between the health insurance plan and its mental health managed care organization to implement policies and incentives to increase collaboration among providers that will facilitate clinical integration of services for medical and mental health conditions, including:

(I) evidence of how data collected from the quality improvement project are being used to inform the practices, policies, and future direction of care management programs for mental health conditions; and

(II) demonstration of how the quality improvement project is supporting the incorporation of best practices and evidence-based guidelines into the utilization review of mental health conditions;

(viii) an up-to-date list of active mental health care providers in the plan's network who are available to the general membership is available on the health insurer's and managed care organization's websites and provided to consumers upon request; and

(ix) the health insurers and managed care organizations make accessible to consumers the toll-free telephone number for the Vermont health care administration's consumer protection help line.

(C) Prior to the adoption of rules pursuant to this subdivision, the commissioner shall consult with the commissioner of mental health and the task force established pursuant to subsection (h) of this section concerning:

(i) developing incentives and other measures addressing the availability of providers of care and treatment for mental health conditions, especially in medically underserved areas;

(ii) incorporating nationally recognized best practices and evidence-based guidelines into the utilization review of mental health conditions; and

(iii) establishing benefit design, infrastructure support, and payment methodology standards for evaluating the health insurance plan's consistency with the Blueprint for Health with respect to the care and treatment of mental health conditions.

(2) A managed care organization providing or administering coverage for treatment of mental health conditions on behalf of a health insurance plan shall comply with this section, sections 4089a and 4724 of this title, and 18 V.S.A. § 9414, with rules adopted pursuant to those provisions of law, and with all other obligations, under Title 18 and under this title, of the health insurance plan and the health insurer on behalf of which the review agent is providing or administering coverage. A violation of any provision of this section shall constitute an unfair act or practice in the business of insurance in violation of section 4723 of this title.

(3) A health insurer that contracts with a managed care organization to provide or administer coverage for treatment of mental health conditions is fully responsible for the acts and omissions of the managed care organization, including any violations of this section or a rule adopted pursuant to this section.

(4) In addition to any other remedy or sanction provided for by law, if the commissioner, after notice and an opportunity to be heard, finds that a health insurance plan or managed care organization has violated this section or any rule adopted pursuant to this section, the commissioner may:

(A) Assess a penalty on the health insurer or managed care organization under section 4726 of this title;

(B) Order the health insurer or managed care organization to cease and desist in further violations;

(C) Order the health insurer or managed care organization to remediate the violation, including issuing an order to the health insurer to terminate its contract with the managed care organization; and

(D) Revoke or suspend the license of a health insurer or managed care organization, or permit continued licensure subject to such conditions as the commissioner deems necessary to carry out the purposes of this section.

(5) As used in this subsection, the term "managed care organization" includes any of the following entities that provide or administer the coverage of mental health benefits on behalf of a health insurance plan:

(A) a review agent as defined in section 4089a of this title;

(B) a health insurer or an affiliate of a health insurer as defined in 18 V.S.A. § 9402;

(C) a managed care organization or an affiliate of a managed care organization as defined in 18 V.S.A. § 9402; and

(D) a person or entity that should be licensed as a managed care organization.

(e) [Repealed.]

(f) To be eligible for coverage under this section the service shall be rendered:

(1) For treatment of mental illness:

(A) by a licensed or certified mental health professional; or

(B) in a mental health facility qualified pursuant to rules adopted by the secretary of human services or in an institution, approved by the secretary of human services, that provides a program for the treatment of a mental health condition pursuant to a written plan. A nonprofit hospital or a medical service corporation may require a mental health facility or licensed or certified mental health professional to enter into a contract as a condition of providing benefits.

(2) For treatment of alcohol or substance abuse:

(A) by a substance abuse counselor or other person approved by the secretary of human services based on rules adopted by the secretary that establish standards and criteria for determining eligibility under this subdivision; or

(B) in an institution, approved by the secretary of human services, that provides a program for the treatment of alcohol or substance dependency pursuant to a written plan.

(g) On or before July 15 of each year, health insurance companies doing business in Vermont whose individual share of the commercially-insured Vermont market, as measured by covered lives, comprises at least five percent of the commercially-insured Vermont market, shall file with the commissioner, in accordance with standards, procedures, and forms approved by the commissioner:

(1) A report card on the health insurance plan's performance in relation to quality measures for the care, treatment, and treatment options of mental health and substance abuse conditions covered under the plan, pursuant to standards and procedures adopted by the commissioner by rule, and without duplicating any reporting required of such companies pursuant to Rule 10 of the division of health care administration, "Quality Assurance Standards and Consumer Protections for Managed Care Plans," and regulation 95-2, "Mental Health Review Agents," of the division of insurance, as amended, including:

(A) the discharge rates from inpatient mental health and substance abuse care and treatment of insureds;

(B) the average length of stay and number of treatment sessions for insureds receiving inpatient and outpatient mental health and substance abuse care and treatment;

(C) the percentage of insureds receiving inpatient and outpatient mental health and substance abuse care and treatment;

(D) the number of insureds denied mental health and substance abuse care and treatment;

(E) the number of denials appealed by patients reported separately from the number of denials appealed by providers;

(F) the rates of readmission to inpatient mental health and substance abuse care and treatment for insureds with a mental health condition;

(G) the level of patient satisfaction with the quality of the mental health and substance abuse care and treatment provided to insureds under the health insurance plan; and

(H) any other quality measure established by the commissioner.

(2) The health insurance plan's revenue loss and expense ratio relating to the care and treatment of mental health conditions covered under the health insurance plan. The expense ratio report shall list amounts paid in claims for services and administrative costs separately. A managed care organization providing or administering coverage for treatment of mental health conditions on behalf of a health insurance plan shall comply with the minimum loss ratio requirements pursuant to the Patient Protection and Affordable Care Act of 2010, Public Law 111-148, as amended by the Health Care and Education Reconciliation Act of 2010, Public Law 111-152, applicable to the underlying health insurance plan with which the managed care organization has contracted to provide or administer such services. The health insurance plan shall also bear responsibility for ensuring the managed care organization's compliance with the minimum loss ratio requirement pursuant to this subdivision.

(h) The commissioner shall establish a task force to develop performance quality measures, address oversight issues for managed behavioral health care organizations, and review the results of any quality improvement projects not otherwise confidential or privileged undertaken by managed care organizations for mental health and substance abuse care and treatment under subdivision (d)(1)(B)(vii) of this section and 18 V.S.A. § 9414(i). The task force shall include the following:

(1) the commissioner of mental health or a designee;

(2) the commissioner of Vermont health access or a designee;

(3) the commissioner of banking, insurance, securities, and health care administration or a designee;

(4) the deputy commissioner of the department of health for alcohol and drug abuse programs or a designee;

(5) fourteen additional members appointed by the commissioner of banking, insurance, securities, and health care administration, including:

(A) four representatives of the health insurance and behavioral managed care organization industry;

(B) two consumers, after consultation with the health care ombudsman;

(C) one psychologist, after consultation with the Vermont psychological association;

(D) one psychiatrist, after consultation with the Vermont psychiatric association;

(E) one social worker, after consultation with the National Association of Social Workers, Vermont Chapter;

(F) one mental health counselor, after consultation with the Vermont mental health counselors association;

(G) one drug and alcohol counselor, after consultation with the Vermont association of drug and alcohol counselors;

(H) one representative from a consumer or citizen's organization;

(I) one representative from the business community; and

(J) one representative of community mental health centers.
Vt. Stat. Ann. tit. 8, § 4089b. Health insurance coverage, mental health and substance abuse
(a) It is the goal of the general assembly that treatment for mental health conditions be recognized as an integral component of health care, that health insurance plans cover all necessary and appropriate medical services without imposing practices that create barriers to receiving appropriate care, and that integration of health care be recognized as the standard for care in this state.

(b) As used in this section:

(1) "Health insurance plan" means any health insurance policy or health benefit plan offered by a health insurer, as defined in 18 V.S.A. § 9402. Health insurance plan includes any health benefit plan offered or administered by the state, or any subdivision or instrumentality of the state.

(2) "Mental health condition" means any condition or disorder involving mental illness or alcohol or substance abuse that falls under any of the diagnostic categories listed in the mental disorders section of the international classification of disease, as periodically revised.

(3) "Rate, term or condition" means any lifetime or annual payment limits, deductibles, copayments, coinsurance and any other cost-sharing requirements, out-of-pocket limits, visit limits, and any other financial component of health insurance coverage that affects the insured.

(c) A health insurance plan shall provide coverage for treatment of a mental health condition and shall:

(1) not establish any rate, term, or condition that places a greater burden on an insured for access to treatment for a mental health condition than for access to treatment for other health conditions;

(2) not exclude from its network or list of authorized providers any licensed mental health or substance abuse provider located within the geographic coverage area of the health benefit plan if the provider is willing to meet the terms and conditions for participation established by the health insurer; and

(3) make any deductible or out-of-pocket limits required under a health insurance plan comprehensive for coverage of both mental health and physical health conditions.

(d)(1)(A) A health insurance plan that does not otherwise provide for management of care under the plan, or that does not provide for the same degree of management of care for all health conditions, may provide coverage for treatment of mental health conditions through a managed care organization provided that the managed care organization is in compliance with the rules adopted by the commissioner that assure that the system for delivery of treatment for mental health conditions does not diminish or negate the purpose of this section. In reviewing rates and forms pursuant to section 4062 of this title, the commissioner shall consider the compliance of the policy with the provisions of this section.

(B) The rules adopted by the commissioner shall assure that:

(i) timely and appropriate access to care is available;

(ii) the quantity, location and specialty distribution of health care providers is adequate;

(iii) administrative or clinical protocols do not serve to reduce access to medically necessary treatment for any insured;

(iv) utilization review and other administrative and clinical protocols do not deter timely and appropriate care, including emergency hospital admissions;

(v) in the case of a managed care organization which contracts with a health insurer to administer the insurer's mental health benefits, the portion of a health insurer's premium rate attributable to the coverage of mental health benefits is reviewed under sections 4062, 4513, 4584, or 5104 of this title to determine whether it is excessive, inadequate, unfairly discriminatory, unjust, unfair, inequitable, misleading or contrary to the laws of this state;

(vi) the health insurance plan is consistent with the Blueprint for Health with respect to mental health conditions, as determined by the commissioner under 18 V.S.A. § 9414(b)(2);

(vii) a quality improvement project is completed annually as a joint project between the health insurance plan and its mental health managed care organization to implement policies and incentives to increase collaboration among providers that will facilitate clinical integration of services for medical and mental health conditions, including:

(I) evidence of how data collected from the quality improvement project are being used to inform the practices, policies, and future direction of care management programs for mental health conditions; and

(II) demonstration of how the quality improvement project is supporting the incorporation of best practices and evidence-based guidelines into the utilization review of mental health conditions;

(viii) an up-to-date list of active mental health care providers in the plan's network who are available to the general membership is available on the health insurer's and managed care organization's websites and provided to consumers upon request; and

(ix) the health insurers and managed care organizations make accessible to consumers the toll-free telephone number for the Vermont health care administration's consumer protection help line.

(C) Prior to the adoption of rules pursuant to this subdivision, the commissioner shall consult with the commissioner of mental health and the task force established pursuant to subsection (h) of this section concerning:

(i) developing incentives and other measures addressing the availability of providers of care and treatment for mental health conditions, especially in medically underserved areas;

(ii) incorporating nationally recognized best practices and evidence-based guidelines into the utilization review of mental health conditions; and

(iii) establishing benefit design, infrastructure support, and payment methodology standards for evaluating the health insurance plan's consistency with the Blueprint for Health with respect to the care and treatment of mental health conditions.

(2) A managed care organization providing or administering coverage for treatment of mental health conditions on behalf of a health insurance plan shall comply with this section, sections 4089a and 4724 of this title, and 18 V.S.A. § 9414, with rules adopted pursuant to those provisions of law, and with all other obligations, under Title 18 and under this title, of the health insurance plan and the health insurer on behalf of which the review agent is providing or administering coverage. A violation of any provision of this section shall constitute an unfair act or practice in the business of insurance in violation of section 4723 of this title.

(3) A health insurer that contracts with a managed care organization to provide or administer coverage for treatment of mental health conditions is fully responsible for the acts and omissions of the managed care organization, including any violations of this section or a rule adopted pursuant to this section.

(4) In addition to any other remedy or sanction provided for by law, if the commissioner, after notice and an opportunity to be heard, finds that a health insurance plan or managed care organization has violated this section or any rule adopted pursuant to this section, the commissioner may:

(A) Assess a penalty on the health insurer or managed care organization under section 4726 of this title;

(B) Order the health insurer or managed care organization to cease and desist in further violations;

(C) Order the health insurer or managed care organization to remediate the violation, including issuing an order to the health insurer to terminate its contract with the managed care organization; and

(D) Revoke or suspend the license of a health insurer or managed care organization, or permit continued licensure subject to such conditions as the commissioner deems necessary to carry out the purposes of this section.

(5) As used in this subsection, the term "managed care organization" includes any of the following entities that provide or administer the coverage of mental health benefits on behalf of a health insurance plan:

(A) a review agent as defined in section 4089a of this title;

(B) a health insurer or an affiliate of a health insurer as defined in 18 V.S.A. § 9402;

(C) a managed care organization or an affiliate of a managed care organization as defined in 18 V.S.A. § 9402; and

(D) a person or entity that should be licensed as a managed care organization.

(e) [Repealed.]

(f) To be eligible for coverage under this section the service shall be rendered:

(1) For treatment of mental illness:

(A) by a licensed or certified mental health professional; or

(B) in a mental health facility qualified pursuant to rules adopted by the secretary of human services or in an institution, approved by the secretary of human services, that provides a program for the treatment of a mental health condition pursuant to a written plan. A nonprofit hospital or a medical service corporation may require a mental health facility or licensed or certified mental health professional to enter into a contract as a condition of providing benefits.

(2) For treatment of alcohol or substance abuse:

(A) by a substance abuse counselor or other person approved by the secretary of human services based on rules adopted by the secretary that establish standards and criteria for determining eligibility under this subdivision; or

(B) in an institution, approved by the secretary of human services, that provides a program for the treatment of alcohol or substance dependency pursuant to a written plan.

(g) On or before July 15 of each year, health insurance companies doing business in Vermont whose individual share of the commercially-insured Vermont market, as measured by covered lives, comprises at least five percent of the commercially-insured Vermont market, shall file with the commissioner, in accordance with standards, procedures, and forms approved by the commissioner:

(1) A report card on the health insurance plan's performance in relation to quality measures for the care, treatment, and treatment options of mental health and substance abuse conditions covered under the plan, pursuant to standards and procedures adopted by the commissioner by rule, and without duplicating any reporting required of such companies pursuant to Rule 10 of the division of health care administration, "Quality Assurance Standards and Consumer Protections for Managed Care Plans," and regulation 95-2, "Mental Health Review Agents," of the division of insurance, as amended, including:

(A) the discharge rates from inpatient mental health and substance abuse care and treatment of insureds;

(B) the average length of stay and number of treatment sessions for insureds receiving inpatient and outpatient mental health and substance abuse care and treatment;

(C) the percentage of insureds receiving inpatient and outpatient mental health and substance abuse care and treatment;

(D) the number of insureds denied mental health and substance abuse care and treatment;

(E) the number of denials appealed by patients reported separately from the number of denials appealed by providers;

(F) the rates of readmission to inpatient mental health and substance abuse care and treatment for insureds with a mental health condition;

(G) the level of patient satisfaction with the quality of the mental health and substance abuse care and treatment provided to insureds under the health insurance plan; and

(H) any other quality measure established by the commissioner.

(2) The health insurance plan's revenue loss and expense ratio relating to the care and treatment of mental health conditions covered under the health insurance plan. The expense ratio report shall list amounts paid in claims for services and administrative costs separately. A managed care organization providing or administering coverage for treatment of mental health conditions on behalf of a health insurance plan shall comply with the minimum loss ratio requirements pursuant to the Patient Protection and Affordable Care Act of 2010, Public Law 111-148, as amended by the Health Care and Education Reconciliation Act of 2010, Public Law 111-152, applicable to the underlying health insurance plan with which the managed care organization has contracted to provide or administer such services. The health insurance plan shall also bear responsibility for ensuring the managed care organization's compliance with the minimum loss ratio requirement pursuant to this subdivision.

(h) The commissioner shall establish a task force to develop performance quality measures, address oversight issues for managed behavioral health care organizations, and review the results of any quality improvement projects not otherwise confidential or privileged undertaken by managed care organizations for mental health and substance abuse care and treatment under subdivision (d)(1)(B)(vii) of this section and 18 V.S.A. § 9414(i). The task force shall include the following:

(1) the commissioner of mental health or a designee;

(2) the commissioner of Vermont health access or a designee;

(3) the commissioner of banking, insurance, securities, and health care administration or a designee;

(4) the deputy commissioner of the department of health for alcohol and drug abuse programs or a designee;

(5) fourteen additional members appointed by the commissioner of banking, insurance, securities, and health care administration, including:

(A) four representatives of the health insurance and behavioral managed care organization industry;

(B) two consumers, after consultation with the health care ombudsman;

(C) one psychologist, after consultation with the Vermont psychological association;

(D) one psychiatrist, after consultation with the Vermont psychiatric association;

(E) one social worker, after consultation with the National Association of Social Workers, Vermont Chapter;

(F) one mental health counselor, after consultation with the Vermont mental health counselors association;

(G) one drug and alcohol counselor, after consultation with the Vermont association of drug and alcohol counselors;

(H) one representative from a consumer or citizen's organization;

(I) one representative from the business community; and

(J) one representative of community mental health centers.

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Vt. Stat. Ann. tit. 8, § 4253. Prohibited acts.(a) A provider shall not use in its name, contracts or literature:

(1) The words "insurance", "casualty", "surety", "mutual"; or

(2) A name deceptively similar to the name or description of any insurance or surety corporation or any other provider licensed to do business in this state.

(b) No provider or its agent shall advertise, print, display, publish, distribute or broadcast, or cause to permit the foregoing to occur, in any manner whatsoever, any statement or representation with regard to the rates, terms, or conditions of a service contract which is false, misleading, or deceptive.

(c) No service contract sold or offered for sale to a consumer in this state shall fail to contain the authorization of the original service contract holder to return the contract within 20 days of receipt of the contract if no claim has been made under the contract and obtain a refund of the full purchase price of the contract. Each provider shall provide or mail a copy of the service contract to the customer within 14 days of the date of sale, unless the provider makes a copy of the service contract terms and conditions available to the consumer at the point of sale, in which event the provider must provide or mail the service contract to the customer within a reasonable period of time.

(d) Nothing in this subchapter shall be construed to impair or in any way affect any rule of law applicable or governing service contracts not otherwise subject hereto.
Vt. Stat. Ann. tit. 8, § 4253. Prohibited acts.(a) A provider shall not use in its name, contracts or literature:

(1) The words "insurance", "casualty", "surety", "mutual"; or

(2) A name deceptively similar to the name or description of any insurance or surety corporation or any other provider licensed to do business in this state.

(b) No provider or its agent shall advertise, print, display, publish, distribute or broadcast, or cause to permit the foregoing to occur, in any manner whatsoever, any statement or representation with regard to the rates, terms, or conditions of a service contract which is false, misleading, or deceptive.

(c) No service contract sold or offered for sale to a consumer in this state shall fail to contain the authorization of the original service contract holder to return the contract within 20 days of receipt of the contract if no claim has been made under the contract and obtain a refund of the full purchase price of the contract. Each provider shall provide or mail a copy of the service contract to the customer within 14 days of the date of sale, unless the provider makes a copy of the service contract terms and conditions available to the consumer at the point of sale, in which event the provider must provide or mail the service contract to the customer within a reasonable period of time.

(d) Nothing in this subchapter shall be construed to impair or in any way affect any rule of law applicable or governing service contracts not otherwise subject hereto.

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Vt. Stat. Ann. tit. 8, § 4254. Prohibited terms.No service contract issued, sold, or covering property located in this state shall provide:

(1) that the consumer is not a party to the contract;

(2) that the provider has no liability to the consumer;

(3) that the consumer does not have the right to bring an action to enforce the terms of the contract or otherwise challenge the denial of a claim which the consumer believes is wrongful, subject to the provisions of any alternative dispute resolution procedure authorized by contract and by law; or

(4) that any civil action brought in connection with the service contract must be brought in the courts of a jurisdiction other than Vermont.
Vt. Stat. Ann. tit. 8, § 4254. Prohibited terms.No service contract issued, sold, or covering property located in this state shall provide:

(1) that the consumer is not a party to the contract;

(2) that the provider has no liability to the consumer;

(3) that the consumer does not have the right to bring an action to enforce the terms of the contract or otherwise challenge the denial of a claim which the consumer believes is wrongful, subject to the provisions of any alternative dispute resolution procedure authorized by contract and by law; or

(4) that any civil action brought in connection with the service contract must be brought in the courts of a jurisdiction other than Vermont.

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Vt. Stat. Ann. tit. 8, § 4498. Misrepresentation.(a) No person shall cause or permit to be made, issued or circulated in any form:

(1) any misrepresentation or false or misleading statement concerning the terms, benefits or advantages of any fraternal insurance contract now issued or to be issued in this state, or the financial condition of any society;

(2) any false or misleading estimate or statement concerning the dividends or shares of surplus paid or to be paid by any society on any insurance contract; or

(3) any incomplete comparison of an insurance contract of one society with an insurance contract of another society or insurer for the purpose of inducing the lapse, forfeiture or surrender of any insurance contract. A comparison of insurance contracts is incomplete if it does not compare in detail:

(A) the gross rates, and the gross rates less any dividend or other reduction allowed at the date of the comparison; and

(B) any increase in cash values, and all the benefits provided by each contract for the possible duration thereof as determined by the life expectancy of the insured;

or if it omits from consideration:

(C) any benefit or value provided in the contract;

(D) any differences as to amount or period of rates; or

(E) any differences in limitations or conditions or provisions which directly or indirectly affect the benefits.

(b) In any determination of the incompleteness or misleading character of any comparison or statement, it shall be presumed that the insured had no knowledge of any of the contents of the contract involved.

(c) A person who violates a provision of this section or knowingly receives any compensation or commission by or in consequence of the violation, shall be punished by a fine of not less than $500.00 nor more than $2,000.00 or by imprisonment not less than 30 days nor more than one year, or both fine and imprisonment and shall in addition, be liable for an administrative penalty in the amount of three times the sum received by the violator as compensation or commission.
Vt. Stat. Ann. tit. 8, § 4498. Misrepresentation.(a) No person shall cause or permit to be made, issued or circulated in any form:

(1) any misrepresentation or false or misleading statement concerning the terms, benefits or advantages of any fraternal insurance contract now issued or to be issued in this state, or the financial condition of any society;

(2) any false or misleading estimate or statement concerning the dividends or shares of surplus paid or to be paid by any society on any insurance contract; or

(3) any incomplete comparison of an insurance contract of one society with an insurance contract of another society or insurer for the purpose of inducing the lapse, forfeiture or surrender of any insurance contract. A comparison of insurance contracts is incomplete if it does not compare in detail:

(A) the gross rates, and the gross rates less any dividend or other reduction allowed at the date of the comparison; and

(B) any increase in cash values, and all the benefits provided by each contract for the possible duration thereof as determined by the life expectancy of the insured;

or if it omits from consideration:

(C) any benefit or value provided in the contract;

(D) any differences as to amount or period of rates; or

(E) any differences in limitations or conditions or provisions which directly or indirectly affect the benefits.

(b) In any determination of the incompleteness or misleading character of any comparison or statement, it shall be presumed that the insured had no knowledge of any of the contents of the contract involved.

(c) A person who violates a provision of this section or knowingly receives any compensation or commission by or in consequence of the violation, shall be punished by a fine of not less than $500.00 nor more than $2,000.00 or by imprisonment not less than 30 days nor more than one year, or both fine and imprisonment and shall in addition, be liable for an administrative penalty in the amount of three times the sum received by the violator as compensation or commission.

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Vt. Stat. Ann. tit. 8, § 4499. Discrimination and rebates.(a) No society doing business in this state shall make or permit any unfair discrimination between insured members of the same class and equal expectation of life in the premiums charged for certificates of insurance, in the dividends or other benefits payable thereon or in any other of the terms and conditions of the contracts it makes.

(b) No society, by itself, or any other party, and no agent or solicitor, personally, or by any other party, may offer, promise, allow, give, set off, or pay, directly or indirectly, any valuable consideration or inducement to, or for insurance, on any risk authorized to be taken by the society, which is not specified in the certificate. No member may receive or accept, directly or indirectly, any rebate of premium, or part thereof, or agent's or solicitor's commission thereon, payable on any certificate or receive or accept any favor or advantage or share in the dividends or other benefits to accrue on, or any valuable consideration or inducement not specified in the contract of insurance.
Vt. Stat. Ann. tit. 8, § 4499. Discrimination and rebates.(a) No society doing business in this state shall make or permit any unfair discrimination between insured members of the same class and equal expectation of life in the premiums charged for certificates of insurance, in the dividends or other benefits payable thereon or in any other of the terms and conditions of the contracts it makes.

(b) No society, by itself, or any other party, and no agent or solicitor, personally, or by any other party, may offer, promise, allow, give, set off, or pay, directly or indirectly, any valuable consideration or inducement to, or for insurance, on any risk authorized to be taken by the society, which is not specified in the certificate. No member may receive or accept, directly or indirectly, any rebate of premium, or part thereof, or agent's or solicitor's commission thereon, payable on any certificate or receive or accept any favor or advantage or share in the dividends or other benefits to accrue on, or any valuable consideration or inducement not specified in the contract of insurance.

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Vt. Stat. Ann. tit. 8, § 4721. Purpose.The purpose of sections 4721-4733 of this title is to regulate trade practices in the business of insurance in accordance with the intent of Congress as expressed in the Act of Congress of March 9, 1945 (Public Law 15, 79th Congress), by defining, or providing for the determination of practices in this state which constitute unfair methods of competition or unfair or deceptive acts or practices and by prohibiting the trade practices so defined or determined.Vt. Stat. Ann. tit. 8, § 4721. Purpose.The purpose of sections 4721-4733 of this title is to regulate trade practices in the business of insurance in accordance with the intent of Congress as expressed in the Act of Congress of March 9, 1945 (Public Law 15, 79th Congress), by defining, or providing for the determination of practices in this state which constitute unfair methods of competition or unfair or deceptive acts or practices and by prohibiting the trade practices so defined or determined.

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Vt. Stat. Ann. tit. 8, § 4722. Definitions.When used in this chapter:

(1) "Person" shall mean any individual, corporation, association, partnership, reciprocal exchange, inter-insurer, Lloyds insurer, fraternal benefit society, and any other legal entity engaged in the business of insurance, including agents, brokers, appraisers and adjusters. Person shall also mean medical, dental, optometric, and hospital service plans as defined in this title. For the purposes of this title, medical, dental, optometric and hospital service plans shall be deemed to be engaged in the business of insurance.

(2) "Commissioner" shall mean the commissioner of banking, insurance, securities, and health care administration.

(3) "Insurance policy" or "insurance contract" shall mean any contract of insurance, indemnity, medical, dental, optometric, or hospital service, suretyship, or annuity issued, proposed for issuance, or intended for issuance by any person.
Vt. Stat. Ann. tit. 8, § 4722. Definitions.When used in this chapter:

(1) "Person" shall mean any individual, corporation, association, partnership, reciprocal exchange, inter-insurer, Lloyds insurer, fraternal benefit society, and any other legal entity engaged in the business of insurance, including agents, brokers, appraisers and adjusters. Person shall also mean medical, dental, optometric, and hospital service plans as defined in this title. For the purposes of this title, medical, dental, optometric and hospital service plans shall be deemed to be engaged in the business of insurance.

(2) "Commissioner" shall mean the commissioner of banking, insurance, securities, and health care administration.

(3) "Insurance policy" or "insurance contract" shall mean any contract of insurance, indemnity, medical, dental, optometric, or hospital service, suretyship, or annuity issued, proposed for issuance, or intended for issuance by any person.

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Vt. Stat. Ann. tit. 8, § 4723. Unfair methods of competition or unfair or deceptive acts or practices prohibited
No person shall engage in any trade practice which is determined under this chapter to be an unfair method of competition or an unfair or deceptive act or practice in the business of insurance.Vt. Stat. Ann. tit. 8, § 4723. Unfair methods of competition or unfair or deceptive acts or practices prohibited
No person shall engage in any trade practice which is determined under this chapter to be an unfair method of competition or an unfair or deceptive act or practice in the business of insurance.

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Vt. Stat. Ann. tit. 8, § 4724. Unfair methods of competition or unfair or deceptive acts or practices defined
The following are hereby defined as unfair methods of competition or unfair or deceptive acts or practices in the business of insurance:

(1) Misrepresentations and false advertising of insurance policies. Making, issuing, circulating, or causing to be made, issued, or circulated, any estimate, illustration, circular, statement, sales presentation, omission, or comparison which:

(A) misrepresents or fails to adequately disclose the benefits, advantages, conditions, exclusions, limitations, or terms of any insurance policy; or

(B) misrepresents the dividends or share of the surplus to be received on any insurance policy; or

(C) makes any false or misleading statements as to the dividends or share of surplus previously paid on any insurance policy; or

(D) is misleading or is a misrepresentation as to the financial condition of any person, or as to the legal reserve system upon which any life insurer operates; or

(E) uses any name or title of any insurance policy or class of insurance policies misrepresenting the true nature thereof; or

(F) is a misrepresentation for the purpose of inducing or tending to induce the lapse, forfeiture, exchange, conversion, or surrender of any insurance policy; or

(G) is a misrepresentation for the purpose of effecting a pledge or assignment of or effecting a loan against any insurance policy; or

(H) misrepresents any insurance policy as being shares of stock.

(2) False information and advertising generally. Making, publishing, disseminating, circulating, or placing before the public or causing, directly or indirectly, to be made, published, disseminated, circulated, or placed before the public, in a newspaper, magazine, or other publication, in the form of a notice, circular, pamphlet, letter, or poster or over any radio station or television station, or in any other way, an advertisement, announcement or statement containing any assertion, representation, or statement with respect to the business of insurance or with respect to any person in the conduct of his or her business, which is untrue, deceptive or misleading.

(3) Defamation. Making, publishing, disseminating, or circulating, directly or indirectly, or aiding, abetting, or encouraging the making, publishing, disseminating, or circulating of any oral or written statement or any pamphlet, circular, article or literature which is false, or maliciously critical of or derogatory to the financial condition of any person and which is calculated to injure such person.

(4)(A) Boycott, coercion, and intimidation. Entering into any agreement to commit, or by any concerted action committing any act of boycott, coercion, or intimidation resulting in or tending to result in unreasonable restraint of trade, or monopoly in, the business of insurance.

(B) Committing any act of boycott, coercion, or intimidation in the marketing or sale of any insurance contracts.

(5) False financial statements and entries.

(A) Knowingly filing with any supervisory or other public official, or knowingly making, publishing, disseminating, circulating, or delivering to any person, or placing before the public, or knowingly causing directly or indirectly, to be made, published, disseminated, circulated, delivered to any person, or placed before the public, any false material statement of fact as to the financial condition of a person.

(B) Knowingly making any false entry of a material fact in a book, report, or statement of any person or knowingly omitting to make a true entry of any material fact pertaining to the business of such person in any book, report or statement of such person.

(C) Knowingly concealing, withholding or destroying, mutilating, altering, or by any means falsifying any documentary material in the possession, custody or control of any person after that person:

(i) has received a complaint to which that documentary material is directly relevant; or

(ii) knows that the documentary material is relevant to an investigation or an examination of that person being made by the commissioner.

(6) Stock operations and advisory board contracts. Permitting agents, officers, or employees to issue or deliver agency or company stock or other capital stock, or benefit certificates or share in any common-law corporation, or securities or any special or advisory board contracts or other contracts of any kind promising returns and profits as an inducement to insure.

(7) Unfair discrimination; arbitrary underwriting action.

(A) Making or permitting any unfair discrimination between insureds of the same class and equal risk in the rates charged for any contract of insurance, or in the dividends or other benefits payable thereon, or in any other of the terms and conditions of such contracts.

(B) Making or permitting unfair discrimination against an applicant or an insured, on the basis of the sex, sexual orientation, gender identity, or marital status of the applicant or insured, with regard to:

(i) Underwriting standards and practices or eligibility requirements; or

(ii) Rates; however, nothing in this subdivision shall prevent any person who contracts to insure another from setting rates for such insurance in accordance with reasonable classifications based on relevant actuarial data or actual cost experience in accordance with section 4656 of this title.

(C)(i) Inquiring or investigating, directly or indirectly as to an applicant's, an insured's or a beneficiary's sexual orientation, or gender identity in an application for insurance coverage, or in an investigation conducted by an insurer, reinsurer, or insurance support organization in connection with an application for such coverage, or using information about gender, marital status, medical history, occupation, residential living arrangements, beneficiaries, zip codes, or other territorial designations to determine sexual orientation or gender identity;

(ii) Using sexual orientation, gender identity, or beneficiary designation in the underwriting process or in the determination of insurability;

(iii) Making adverse underwriting decisions because medical records or a report from an insurance support organization reveal that an applicant or insured has demonstrated AIDS-related concerns by seeking counseling from health care professionals;

(iv) Making adverse underwriting decisions on the basis of the existence of nonspecific blood code information received from the medical information bureau or a national data bank, but this prohibition shall not bar investigation in response to such a nonspecific blood code;

(v) The provisions of this subdivision (C) shall not be construed to prohibit an insurer from requesting an applicant or insured to take an HIV-related test on the basis of the health history or current condition of health of the applicant or insured in accordance with the provisions of subdivision (20) of this section.

(D) Making or permitting any unfair discrimination against any individual by conditioning insurance rates, the provision or renewal of insurance coverage, or other conditions of insurance based on medical information, including the results of genetic testing, where there is not a relationship between the medical information and the cost of the insurance risk that the insurer would assume by insuring the proposed insured. In demonstrating the relationship, the insurer can rely on actual or reasonably anticipated experience. As used in this subdivision, "genetic testing" shall be defined as the term is defined in 18 V.S.A. § 9331(7).

(E) Making or permitting unfair discrimination between married couples and parties to a civil union as defined under 15 V.S.A. § 1201, with regard to the offering of insurance benefits to a couple, a spouse, a party to a civil union, or their family. The commissioner shall adopt rules necessary to carry out the purposes of this subdivision. The rules shall ensure that insurance contracts and policies offered to married couples, spouses, and families are also made available to parties to a civil union and their families. The commissioner may adopt by order standards and a process to bring the forms currently on file and approved by the department into compliance with Vermont law. The standards and process may differ from the provisions contained in chapter 101, subchapter 6, and sections 4062, 4201, 4515a, 4587, 4685, 4687, 4688, 4985, 5104, and 8005 of this title where, in the commissioner's opinion, the provisions regarding filing and approval of forms are not desirable

or necessary to effectuate the purposes of this section.

(8) Rebates.

(A) Except as otherwise expressly provided by law, knowingly permitting or offering to make or making any contract of insurance or agreement as to such contract other than as plainly expressed in the insurance contract issued thereon, or paying or allowing, or giving or offering to pay, allow, or give, directly or indirectly, as inducement to such insurance, any rebate or premiums payable on the contract, or any special favor or advantage in the dividends or other benefits thereon, or any valuable consideration or inducement whatever not specified in the contract; or giving, or selling, or purchasing or offering to give, sell, or purchase as inducement to such insurance contract or annuity or in connection therewith, any stocks, bonds, or other securities of any insurance company or other corporation, association or partnership, or any dividends or profits accrued thereon, or anything of value whatsoever of value not specified in the contract.

(B) Making available through any rating plan or form, property, casualty, or surety insurance to any firm, corporation, or association of individuals, any preferred rate or premium based upon any fictitious grouping of such firm, corporation or individuals. The grouping of risks by way of membership, nonmembership, license, franchise, employment, contract, agreement, or any other method or means, when the grouping of risks have no preferred characteristic over similar risks written on an individual basis, for the purpose of insuring such grouped risks at a preferred rate or premium or on a preferred form is a "fictitious grouping." This subdivision shall not apply to life or health and disability insurance or annuity contracts.

(C) Nothing in subdivision (7) or (8)(A) of this section shall be construed as including within the definition of discrimination or rebates any of the following practices:

(i) in the case of any contract of life insurance or life annuity, paying bonuses to policyholders or otherwise abating their premiums in whole or in part out of surplus accumulated from nonparticipating insurance, provided that such bonuses or abatement of premiums shall be fair, and equitable to policyholders and for the best interest of the company and its policyholders;

(ii) in the case of life insurance policies issued on the industrial debit plan, making allowance to policyholders who have continuously for a specified period made premium payments directly to an office of the insurer in an amount which fairly represents the saving in collection expenses;

(iii) readjustment of the rate of premium for a group insurance policy based on the loss or expense thereunder, at the end of the first or any subsequent policy year of insurance thereunder, which may be made retroactive only for such policy year.

(9) Unfair claim settlement practices. Committing or performing with such frequency as to indicate a business practice any of the following:

(A) misrepresenting pertinent facts or insurance policy provisions relating to coverage at issue;

(B) failing to acknowledge and act reasonably promptly upon communications with respect to claims arising under insurance policies;

(C) failing to adopt and implement reasonable standards for the prompt investigation of claims arising under insurance policies;

(D) refusing to pay claims without conducting a reasonable investigation based upon all available information;

(E) failing to affirm or deny coverage of claims within a reasonable time after proof of loss statements have been completed;

(F) not attempting in good faith to effectuate prompt, fair and equitable settlements of claims in which liability has become reasonably clear;

(G) attempting to settle a claim for less than the amount to which a reasonable person would have believed he or she was entitled by reference to written or printed advertising material accompanying or made a part of the application;

(H) attempting to settle claims on the basis of an application which was altered without notice to, or knowledge or consent of the insured;

(I) making claim payments to insureds or beneficiaries not accompanied by a statement setting forth the coverage under which the payments are made;

(J) making known to insureds or claimants a policy of appealing from arbitration awards in favor of insureds or claimants for the purpose of compelling them to accept settlements or compromises less than the amount awarded in arbitration;

(K) delaying the investigation or payment of claims by requiring an insured, claimant, or the physician of either to submit a preliminary claim report and then requiring the subsequent submission of formal proof of loss forms, both of which submissions contain substantially the same information;

(L) failing to promptly settle claims where liability has become reasonably clear under one portion of the insurance policy coverage in order to influence settlements under other portions of the insurance policy coverage;

(M) failing to promptly provide a reasonable explanation on the basis in the insurance policy in relation to the facts or applicable law for denial of a claim or for the offer of a compromise settlement.

(10) Failure to maintain complaint handling procedures. Failure of any person to maintain a complete record of all of the complaints which it has received since the date of its last examination under section 3563 or 3564 of this title. This record shall indicate the total number of complaints, their classification by line of insurance, the nature of each complaint, the disposition of these complaints, the time it took to process each complaint and such other information as the commissioner may require. For the purpose of this subdivision, "complaint" shall mean any written communication primarily expressing a grievance.

(11) Misrepresentation in insurance applications. Making false or fraudulent statements or representations on or relative to an application for an insurance policy, for the purpose of obtaining a fee, commission, money, or other benefit from any insurers, agent, broker, or individual.

(12) Failure of agent, broker, or insurer to act as fiduciary. 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.

(13) Misrepresentation of services or products. Any person offering his or her, or its services or insurance policies to the public in such a way as to mislead or to fail to adequately disclose to the public the true nature of the policies or the services offered.

(14) Nondisclosure of fees or charges. Failure of any agent or broker to obtain a prior written agreement with a client, policyholder, or other member of the public concerning fees or charges made by that agent or broker directly to the client, policyholder, or member of the public for that agent or broker procuring, servicing, or providing advice on insurance contracts. Commissions, expense allowances, bonuses, fees, or any other compensation received directly by agents or brokers from any legal entity engaged in the insurance business is exempt from this subdivision.

(15) Financed premiums. Misrepresenting or failing to completely disclose the terms, conditions, or benefits of financing premiums for insurance policies where the financing of the premiums constitute part of the solicitation or sale of the policy.

(16) Unsuitable policies. Soliciting, selling, or issuing an insurance policy when the person soliciting, selling, or issuing the policy has reason to know or should have reason to know that it is unsuitable for the person purchasing it.

(17) Failure to instruct or supervise representatives. Failure of an employer or principal engaged in the business of insurance to instruct or supervise any full-time agent, or full-time adjuster, or full or part-time employee after that employer or principal has knowledge of a deceptive or unfair act or practice prohibited by this chapter which was committed by that agent, adjuster, or employee.

(18) Doing business with a person known to be committing deceptive or unfair acts or using prohibited practices. Accepting business from or contracting with or continuing contractual relations with a person whom the other person knows or has or should have reason to know is repeatedly committing deceptive or unfair acts or practices prohibited by this title.

(19) Failure to comply with filed rates, rules, regulations, or forms.

the commissioner.

(20) HIV-related tests. Failing to comply with the provisions of this subdivision regarding HIV-related tests. "HIV-related test" means a test approved by the United States Food and Drug Administration and the commissioner, used to determine the existence of HIV antibodies or antigens in the blood, urine, or oral mucosal transudate (OMT).

(A) No person shall request or require that a person reveal having taken HIV-related tests in the past.

(B)(i) No person shall request or require that an individual submit to an HIV-related test unless he or she has first obtained the individual's written informed consent to the test. Before written, informed consent may be granted, the individual shall be informed, by means of a printed information statement which shall have been read aloud to the individual by any agent of the insurer at the time of application or later and then given to the individual for review and retention, of the following:

(I) an explanation of the test or tests to be given, including: the tests' relationship to AIDS, the insurer's purpose in seeking the test, potential uses and disclosures of the results, limitations on the accuracy of and the meaning of the test's results, the importance of seeking counseling about the individual's test results after those results are received, and the availability of information from and the telephone numbers of the Vermont AIDS hotline and the Centers for Disease Control and Prevention; and

(II) an explanation that the individual is free to consult, at personal expense, with a personal physician or counselor or the state health department, or obtain an anonymous test at the individual's choice and personal expense, before deciding whether to consent to testing and that such delay will not affect the status of any application or policy; and

(III) a summary of the individual's rights under this subdivision (20), including subdivisions (F)-(K); and

(IV) an explanation that the person requesting or requiring the test, not the individual or the individual's health care provider, will be billed for the test, that the individual has a choice to receive the test results directly or to designate in writing prior to the administration of the test any other person through whom to receive the results, and any HIV positive test result from a test performed pursuant to this subdivision (20) shall be reported to the Vermont department of health pursuant to 18 V.S.A. § 1001.

(ii) In addition, before drawing blood or obtaining a sample of the urine or OMT for the HIV-related test or tests, the person doing so shall give the individual to be tested an informed consent form containing the information required by the provisions of this subdivision (B), and shall then obtain the individual's written informed consent. If an OMT test is administered in the presence of the agent or broker, the individual's written informed consent need only be obtained prior to administering the test, in accordance with the provisions of this subdivision (B).

(C)(i) The forms for informed consent, information disclosure, and test results disclosure used for HIV-related testing shall be filed with and approved by the commissioner pursuant to section 3541 of this title; and

(ii) Any testing procedure shall be filed and approved by the commissioner in consultation with the commissioner of the department of health.

(D) No laboratory may be used by an insurer or insurance support organization for the processing of HIV-related tests unless it is approved by the Vermont department of health. Any requests for approval under this subdivision shall be acted upon within 120 days. The department may approve a laboratory without on-site inspection or additional proficiency data if the laboratory has been certified under the Clinical Laboratory Improvement Act, 42 U.S.C. § 263a or if it meets the requirements of the federal Health Care Financing Administration under the Clinical Laboratory Improvement Amendments.

(E) The test protocol shall be considered positive only if test results are two positive ELISA tests, and a Western Blot test confirms the results of the two ELISA tests, or upon approval of any equally or more reliable confirmatory test or test protocol which has been approved by the commissioner and the United States Food and Drug Administration. If the result of any test performed on a sample of urine or OMT is positive or indeterminate, the insurer shall provide to the individual, no later than 30 days following the date of the first urine or OMT test results, the opportunity to retest once, and the individual shall have the option to provide either a blood sample, a urine sample or an OMT sample for that retest. This retest shall be in addition to the opportunities for retest provided in subdivisions (F) and (G) of this subdivision (20).

(F) If an individual has at least two positive ELISA tests but an indeterminate Western Blot test result, the Western Blot test may be repeated on the same sample. If the Western Blot test result is indeterminate, the insurer may delay action on the application, but no change in preexisting coverage, benefits or rates under any separate policy or policies held by the individual may be based upon such indeterminacy. If action on an application is delayed due to indeterminacy as described herein, the insurer shall provide the individual the opportunity to retest once after six but not later than eight months following the date of the first indeterminate test result. If the retest Western Blot test result is again indeterminate or is negative, the test result shall be considered as negative, and a new application for coverage shall not be denied by the insurer based upon the results of either test. Any underwriting decision granting a substandard classification or exclusion

based on the individual's prior HIV-related test results shall be reversed, and the company performing a retest which had forwarded to a medical information bureau reports based upon the individual's prior HIV-related test results shall request the medical information bureau to remove any abnormal codes listed due to such prior test results.

(G)(i) Upon the written request of an individual for a retest, an insurer shall retest, at the insurer's expense, any individual who was denied insurance, or offered insurance on any other than a standard basis, because of the positive results of an HIV-related test:

(I) once within the three-year period following the date of the most recent test; and

(II) in any event, upon the approval by the commissioner of an alternative test or test protocol for the presence of HIV antibodies or antigens.

(ii) If such retest is negative, a new application for coverage shall not be denied by the insurer based upon the results of the initial test. Any underwriting decision granting a substandard classification or exclusion based on the individual's prior HIV-related test results shall be reversed, and the company performing a retest which had forwarded to a medical information bureau reports based upon the individual's prior HIV-related test results shall request the medical information bureau to remove any abnormal codes listed due to such prior test results.

(H) An insurer, on the basis of the individual's written informed consent as specified in subdivision (B) of this subdivision, if necessary to make underwriting decisions regarding the particular individual's application, may disclose the results of an individual's HIV-related test results to its reinsurers, or to those contractually retained medical personnel, laboratories, insurance support organizations, and insurance affiliates (but not agents or brokers) that are involved in underwriting decisions regarding the individual's particular application. Other than the disclosures permitted by this subdivision, the entities listed herein, including the insurer, shall not further disclose to anyone individually-identified HIV-related test result information without a separately obtained written authorization from the individual; provided, however, that if an individual's test result is positive or indeterminate, then an insurer may report a code to the medical information b

ureau provided that a nonspecific test result code is used which does not indicate that the individual was subjected to HIV-related testing.

(I) An insurer, reinsurer, contractually retained medical personnel, laboratories, medical information bureau or other national data bank, insurance affiliate, or insurance support organizations that are obligated to not disclose any individually-identifiable records of HIV-related tests pursuant to this subdivision (20) shall have no duty to disclose this information to any person except in compliance with a court order or as provided in subdivision (B) or (H) nor shall it have any liability to any person for refusing or failing to disclose such information.

(J) Any individual who sustains damage as a result of the unauthorized negligent or knowing disclosure of that individual's individually-identifiable HIV-related test result information in violation of subdivision (H) of this subdivision (20) may bring an action for appropriate relief in superior court against any person making such a disclosure. The court may award costs and reasonable attorney's fees to the individual who prevails in an action brought under this subdivision.

(K) In addition to any other remedy or sanction provided by law, after notice and opportunity for hearing the commissioner may assess an administrative penalty in an amount not to exceed $2,000.00 for each violation against any person who violates any provision of this subdivision (20) or subdivision (7)(C) of this section.

(21) Automobile glass services. In the case of claims for damage to automobile glass under a policy of insurance covering, in whole or in part, motor vehicles:

(A) Failing to inform an insured, at the time a claim is made, of the right of the insured to choose freely any company or location for providing automobile glass services.

(B) Intimidating, coercing, threatening, or misinforming an insured for the purpose of inducing the insured to use a particular company or location to provide automobile glass services.

(22) Genetic testing.

(A) Conditioning insurance rates, the provision or renewal of insurance coverage or benefits or other conditions of insurance for any individual on:

(i) any requirement or agreement of the individual to undergo genetic testing; or

(ii) the results of genetic testing of a member of the individual's family unless the results are contained in the individual's medical record.

(B) As used in this subdivision, "genetic testing" shall be defined as the term is defined in 18 V.S.A. § 9331(7).
Vt. Stat. Ann. tit. 8, § 4724. Unfair methods of competition or unfair or deceptive acts or practices defined
The following are hereby defined as unfair methods of competition or unfair or deceptive acts or practices in the business of insurance:

(1) Misrepresentations and false advertising of insurance policies. Making, issuing, circulating, or causing to be made, issued, or circulated, any estimate, illustration, circular, statement, sales presentation, omission, or comparison which:

(A) misrepresents or fails to adequately disclose the benefits, advantages, conditions, exclusions, limitations, or terms of any insurance policy; or

(B) misrepresents the dividends or share of the surplus to be received on any insurance policy; or

(C) makes any false or misleading statements as to the dividends or share of surplus previously paid on any insurance policy; or

(D) is misleading or is a misrepresentation as to the financial condition of any person, or as to the legal reserve system upon which any life insurer operates; or

(E) uses any name or title of any insurance policy or class of insurance policies misrepresenting the true nature thereof; or

(F) is a misrepresentation for the purpose of inducing or tending to induce the lapse, forfeiture, exchange, conversion, or surrender of any insurance policy; or

(G) is a misrepresentation for the purpose of effecting a pledge or assignment of or effecting a loan against any insurance policy; or

(H) misrepresents any insurance policy as being shares of stock.

(2) False information and advertising generally. Making, publishing, disseminating, circulating, or placing before the public or causing, directly or indirectly, to be made, published, disseminated, circulated, or placed before the public, in a newspaper, magazine, or other publication, in the form of a notice, circular, pamphlet, letter, or poster or over any radio station or television station, or in any other way, an advertisement, announcement or statement containing any assertion, representation, or statement with respect to the business of insurance or with respect to any person in the conduct of his or her business, which is untrue, deceptive or misleading.

(3) Defamation. Making, publishing, disseminating, or circulating, directly or indirectly, or aiding, abetting, or encouraging the making, publishing, disseminating, or circulating of any oral or written statement or any pamphlet, circular, article or literature which is false, or maliciously critical of or derogatory to the financial condition of any person and which is calculated to injure such person.

(4)(A) Boycott, coercion, and intimidation. Entering into any agreement to commit, or by any concerted action committing any act of boycott, coercion, or intimidation resulting in or tending to result in unreasonable restraint of trade, or monopoly in, the business of insurance.

(B) Committing any act of boycott, coercion, or intimidation in the marketing or sale of any insurance contracts.

(5) False financial statements and entries.

(A) Knowingly filing with any supervisory or other public official, or knowingly making, publishing, disseminating, circulating, or delivering to any person, or placing before the public, or knowingly causing directly or indirectly, to be made, published, disseminated, circulated, delivered to any person, or placed before the public, any false material statement of fact as to the financial condition of a person.

(B) Knowingly making any false entry of a material fact in a book, report, or statement of any person or knowingly omitting to make a true entry of any material fact pertaining to the business of such person in any book, report or statement of such person.

(C) Knowingly concealing, withholding or destroying, mutilating, altering, or by any means falsifying any documentary material in the possession, custody or control of any person after that person:

(i) has received a complaint to which that documentary material is directly relevant; or

(ii) knows that the documentary material is relevant to an investigation or an examination of that person being made by the commissioner.

(6) Stock operations and advisory board contracts. Permitting agents, officers, or employees to issue or deliver agency or company stock or other capital stock, or benefit certificates or share in any common-law corporation, or securities or any special or advisory board contracts or other contracts of any kind promising returns and profits as an inducement to insure.

(7) Unfair discrimination; arbitrary underwriting action.

(A) Making or permitting any unfair discrimination between insureds of the same class and equal risk in the rates charged for any contract of insurance, or in the dividends or other benefits payable thereon, or in any other of the terms and conditions of such contracts.

(B) Making or permitting unfair discrimination against an applicant or an insured, on the basis of the sex, sexual orientation, gender identity, or marital status of the applicant or insured, with regard to:

(i) Underwriting standards and practices or eligibility requirements; or

(ii) Rates; however, nothing in this subdivision shall prevent any person who contracts to insure another from setting rates for such insurance in accordance with reasonable classifications based on relevant actuarial data or actual cost experience in accordance with section 4656 of this title.

(C)(i) Inquiring or investigating, directly or indirectly as to an applicant's, an insured's or a beneficiary's sexual orientation, or gender identity in an application for insurance coverage, or in an investigation conducted by an insurer, reinsurer, or insurance support organization in connection with an application for such coverage, or using information about gender, marital status, medical history, occupation, residential living arrangements, beneficiaries, zip codes, or other territorial designations to determine sexual orientation or gender identity;

(ii) Using sexual orientation, gender identity, or beneficiary designation in the underwriting process or in the determination of insurability;

(iii) Making adverse underwriting decisions because medical records or a report from an insurance support organization reveal that an applicant or insured has demonstrated AIDS-related concerns by seeking counseling from health care professionals;

(iv) Making adverse underwriting decisions on the basis of the existence of nonspecific blood code information received from the medical information bureau or a national data bank, but this prohibition shall not bar investigation in response to such a nonspecific blood code;

(v) The provisions of this subdivision (C) shall not be construed to prohibit an insurer from requesting an applicant or insured to take an HIV-related test on the basis of the health history or current condition of health of the applicant or insured in accordance with the provisions of subdivision (20) of this section.

(D) Making or permitting any unfair discrimination against any individual by conditioning insurance rates, the provision or renewal of insurance coverage, or other conditions of insurance based on medical information, including the results of genetic testing, where there is not a relationship between the medical information and the cost of the insurance risk that the insurer would assume by insuring the proposed insured. In demonstrating the relationship, the insurer can rely on actual or reasonably anticipated experience. As used in this subdivision, "genetic testing" shall be defined as the term is defined in 18 V.S.A. § 9331(7).

(E) Making or permitting unfair discrimination between married couples and parties to a civil union as defined under 15 V.S.A. § 1201, with regard to the offering of insurance benefits to a couple, a spouse, a party to a civil union, or their family. The commissioner shall adopt rules necessary to carry out the purposes of this subdivision. The rules shall ensure that insurance contracts and policies offered to married couples, spouses, and families are also made available to parties to a civil union and their families. The commissioner may adopt by order standards and a process to bring the forms currently on file and approved by the department into compliance with Vermont law. The standards and process may differ from the provisions contained in chapter 101, subchapter 6, and sections 4062, 4201, 4515a, 4587, 4685, 4687, 4688, 4985, 5104, and 8005 of this title where, in the commissioner's opinion, the provisions regarding filing and approval of forms are not desirable

or necessary to effectuate the purposes of this section.

(8) Rebates.

(A) Except as otherwise expressly provided by law, knowingly permitting or offering to make or making any contract of insurance or agreement as to such contract other than as plainly expressed in the insurance contract issued thereon, or paying or allowing, or giving or offering to pay, allow, or give, directly or indirectly, as inducement to such insurance, any rebate or premiums payable on the contract, or any special favor or advantage in the dividends or other benefits thereon, or any valuable consideration or inducement whatever not specified in the contract; or giving, or selling, or purchasing or offering to give, sell, or purchase as inducement to such insurance contract or annuity or in connection therewith, any stocks, bonds, or other securities of any insurance company or other corporation, association or partnership, or any dividends or profits accrued thereon, or anything of value whatsoever of value not specified in the contract.

(B) Making available through any rating plan or form, property, casualty, or surety insurance to any firm, corporation, or association of individuals, any preferred rate or premium based upon any fictitious grouping of such firm, corporation or individuals. The grouping of risks by way of membership, nonmembership, license, franchise, employment, contract, agreement, or any other method or means, when the grouping of risks have no preferred characteristic over similar risks written on an individual basis, for the purpose of insuring such grouped risks at a preferred rate or premium or on a preferred form is a "fictitious grouping." This subdivision shall not apply to life or health and disability insurance or annuity contracts.

(C) Nothing in subdivision (7) or (8)(A) of this section shall be construed as including within the definition of discrimination or rebates any of the following practices:

(i) in the case of any contract of life insurance or life annuity, paying bonuses to policyholders or otherwise abating their premiums in whole or in part out of surplus accumulated from nonparticipating insurance, provided that such bonuses or abatement of premiums shall be fair, and equitable to policyholders and for the best interest of the company and its policyholders;

(ii) in the case of life insurance policies issued on the industrial debit plan, making allowance to policyholders who have continuously for a specified period made premium payments directly to an office of the insurer in an amount which fairly represents the saving in collection expenses;

(iii) readjustment of the rate of premium for a group insurance policy based on the loss or expense thereunder, at the end of the first or any subsequent policy year of insurance thereunder, which may be made retroactive only for such policy year.

(9) Unfair claim settlement practices. Committing or performing with such frequency as to indicate a business practice any of the following:

(A) misrepresenting pertinent facts or insurance policy provisions relating to coverage at issue;

(B) failing to acknowledge and act reasonably promptly upon communications with respect to claims arising under insurance policies;

(C) failing to adopt and implement reasonable standards for the prompt investigation of claims arising under insurance policies;

(D) refusing to pay claims without conducting a reasonable investigation based upon all available information;

(E) failing to affirm or deny coverage of claims within a reasonable time after proof of loss statements have been completed;

(F) not attempting in good faith to effectuate prompt, fair and equitable settlements of claims in which liability has become reasonably clear;

(G) attempting to settle a claim for less than the amount to which a reasonable person would have believed he or she was entitled by reference to written or printed advertising material accompanying or made a part of the application;

(H) attempting to settle claims on the basis of an application which was altered without notice to, or knowledge or consent of the insured;

(I) making claim payments to insureds or beneficiaries not accompanied by a statement setting forth the coverage under which the payments are made;

(J) making known to insureds or claimants a policy of appealing from arbitration awards in favor of insureds or claimants for the purpose of compelling them to accept settlements or compromises less than the amount awarded in arbitration;

(K) delaying the investigation or payment of claims by requiring an insured, claimant, or the physician of either to submit a preliminary claim report and then requiring the subsequent submission of formal proof of loss forms, both of which submissions contain substantially the same information;

(L) failing to promptly settle claims where liability has become reasonably clear under one portion of the insurance policy coverage in order to influence settlements under other portions of the insurance policy coverage;

(M) failing to promptly provide a reasonable explanation on the basis in the insurance policy in relation to the facts or applicable law for denial of a claim or for the offer of a compromise settlement.

(10) Failure to maintain complaint handling procedures. Failure of any person to maintain a complete record of all of the complaints which it has received since the date of its last examination under section 3563 or 3564 of this title. This record shall indicate the total number of complaints, their classification by line of insurance, the nature of each complaint, the disposition of these complaints, the time it took to process each complaint and such other information as the commissioner may require. For the purpose of this subdivision, "complaint" shall mean any written communication primarily expressing a grievance.

(11) Misrepresentation in insurance applications. Making false or fraudulent statements or representations on or relative to an application for an insurance policy, for the purpose of obtaining a fee, commission, money, or other benefit from any insurers, agent, broker, or individual.

(12) Failure of agent, broker, or insurer to act as fiduciary. 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.

(13) Misrepresentation of services or products. Any person offering his or her, or its services or insurance policies to the public in such a way as to mislead or to fail to adequately disclose to the public the true nature of the policies or the services offered.

(14) Nondisclosure of fees or charges. Failure of any agent or broker to obtain a prior written agreement with a client, policyholder, or other member of the public concerning fees or charges made by that agent or broker directly to the client, policyholder, or member of the public for that agent or broker procuring, servicing, or providing advice on insurance contracts. Commissions, expense allowances, bonuses, fees, or any other compensation received directly by agents or brokers from any legal entity engaged in the insurance business is exempt from this subdivision.

(15) Financed premiums. Misrepresenting or failing to completely disclose the terms, conditions, or benefits of financing premiums for insurance policies where the financing of the premiums constitute part of the solicitation or sale of the policy.

(16) Unsuitable policies. Soliciting, selling, or issuing an insurance policy when the person soliciting, selling, or issuing the policy has reason to know or should have reason to know that it is unsuitable for the person purchasing it.

(17) Failure to instruct or supervise representatives. Failure of an employer or principal engaged in the business of insurance to instruct or supervise any full-time agent, or full-time adjuster, or full or part-time employee after that employer or principal has knowledge of a deceptive or unfair act or practice prohibited by this chapter which was committed by that agent, adjuster, or employee.

(18) Doing business with a person known to be committing deceptive or unfair acts or using prohibited practices. Accepting business from or contracting with or continuing contractual relations with a person whom the other person knows or has or should have reason to know is repeatedly committing deceptive or unfair acts or practices prohibited by this title.

(19) Failure to comply with filed rates, rules, regulations, or forms.

the commissioner.

(20) HIV-related tests. Failing to comply with the provisions of this subdivision regarding HIV-related tests. "HIV-related test" means a test approved by the United States Food and Drug Administration and the commissioner, used to determine the existence of HIV antibodies or antigens in the blood, urine, or oral mucosal transudate (OMT).

(A) No person shall request or require that a person reveal having taken HIV-related tests in the past.

(B)(i) No person shall request or require that an individual submit to an HIV-related test unless he or she has first obtained the individual's written informed consent to the test. Before written, informed consent may be granted, the individual shall be informed, by means of a printed information statement which shall have been read aloud to the individual by any agent of the insurer at the time of application or later and then given to the individual for review and retention, of the following:

(I) an explanation of the test or tests to be given, including: the tests' relationship to AIDS, the insurer's purpose in seeking the test, potential uses and disclosures of the results, limitations on the accuracy of and the meaning of the test's results, the importance of seeking counseling about the individual's test results after those results are received, and the availability of information from and the telephone numbers of the Vermont AIDS hotline and the Centers for Disease Control and Prevention; and

(II) an explanation that the individual is free to consult, at personal expense, with a personal physician or counselor or the state health department, or obtain an anonymous test at the individual's choice and personal expense, before deciding whether to consent to testing and that such delay will not affect the status of any application or policy; and

(III) a summary of the individual's rights under this subdivision (20), including subdivisions (F)-(K); and

(IV) an explanation that the person requesting or requiring the test, not the individual or the individual's health care provider, will be billed for the test, that the individual has a choice to receive the test results directly or to designate in writing prior to the administration of the test any other person through whom to receive the results, and any HIV positive test result from a test performed pursuant to this subdivision (20) shall be reported to the Vermont department of health pursuant to 18 V.S.A. § 1001.

(ii) In addition, before drawing blood or obtaining a sample of the urine or OMT for the HIV-related test or tests, the person doing so shall give the individual to be tested an informed consent form containing the information required by the provisions of this subdivision (B), and shall then obtain the individual's written informed consent. If an OMT test is administered in the presence of the agent or broker, the individual's written informed consent need only be obtained prior to administering the test, in accordance with the provisions of this subdivision (B).

(C)(i) The forms for informed consent, information disclosure, and test results disclosure used for HIV-related testing shall be filed with and approved by the commissioner pursuant to section 3541 of this title; and

(ii) Any testing procedure shall be filed and approved by the commissioner in consultation with the commissioner of the department of health.

(D) No laboratory may be used by an insurer or insurance support organization for the processing of HIV-related tests unless it is approved by the Vermont department of health. Any requests for approval under this subdivision shall be acted upon within 120 days. The department may approve a laboratory without on-site inspection or additional proficiency data if the laboratory has been certified under the Clinical Laboratory Improvement Act, 42 U.S.C. § 263a or if it meets the requirements of the federal Health Care Financing Administration under the Clinical Laboratory Improvement Amendments.

(E) The test protocol shall be considered positive only if test results are two positive ELISA tests, and a Western Blot test confirms the results of the two ELISA tests, or upon approval of any equally or more reliable confirmatory test or test protocol which has been approved by the commissioner and the United States Food and Drug Administration. If the result of any test performed on a sample of urine or OMT is positive or indeterminate, the insurer shall provide to the individual, no later than 30 days following the date of the first urine or OMT test results, the opportunity to retest once, and the individual shall have the option to provide either a blood sample, a urine sample or an OMT sample for that retest. This retest shall be in addition to the opportunities for retest provided in subdivisions (F) and (G) of this subdivision (20).

(F) If an individual has at least two positive ELISA tests but an indeterminate Western Blot test result, the Western Blot test may be repeated on the same sample. If the Western Blot test result is indeterminate, the insurer may delay action on the application, but no change in preexisting coverage, benefits or rates under any separate policy or policies held by the individual may be based upon such indeterminacy. If action on an application is delayed due to indeterminacy as described herein, the insurer shall provide the individual the opportunity to retest once after six but not later than eight months following the date of the first indeterminate test result. If the retest Western Blot test result is again indeterminate or is negative, the test result shall be considered as negative, and a new application for coverage shall not be denied by the insurer based upon the results of either test. Any underwriting decision granting a substandard classification or exclusion

based on the individual's prior HIV-related test results shall be reversed, and the company performing a retest which had forwarded to a medical information bureau reports based upon the individual's prior HIV-related test results shall request the medical information bureau to remove any abnormal codes listed due to such prior test results.

(G)(i) Upon the written request of an individual for a retest, an insurer shall retest, at the insurer's expense, any individual who was denied insurance, or offered insurance on any other than a standard basis, because of the positive results of an HIV-related test:

(I) once within the three-year period following the date of the most recent test; and

(II) in any event, upon the approval by the commissioner of an alternative test or test protocol for the presence of HIV antibodies or antigens.

(ii) If such retest is negative, a new application for coverage shall not be denied by the insurer based upon the results of the initial test. Any underwriting decision granting a substandard classification or exclusion based on the individual's prior HIV-related test results shall be reversed, and the company performing a retest which had forwarded to a medical information bureau reports based upon the individual's prior HIV-related test results shall request the medical information bureau to remove any abnormal codes listed due to such prior test results.

(H) An insurer, on the basis of the individual's written informed consent as specified in subdivision (B) of this subdivision, if necessary to make underwriting decisions regarding the particular individual's application, may disclose the results of an individual's HIV-related test results to its reinsurers, or to those contractually retained medical personnel, laboratories, insurance support organizations, and insurance affiliates (but not agents or brokers) that are involved in underwriting decisions regarding the individual's particular application. Other than the disclosures permitted by this subdivision, the entities listed herein, including the insurer, shall not further disclose to anyone individually-identified HIV-related test result information without a separately obtained written authorization from the individual; provided, however, that if an individual's test result is positive or indeterminate, then an insurer may report a code to the medical information b

ureau provided that a nonspecific test result code is used which does not indicate that the individual was subjected to HIV-related testing.

(I) An insurer, reinsurer, contractually retained medical personnel, laboratories, medical information bureau or other national data bank, insurance affiliate, or insurance support organizations that are obligated to not disclose any individually-identifiable records of HIV-related tests pursuant to this subdivision (20) shall have no duty to disclose this information to any person except in compliance with a court order or as provided in subdivision (B) or (H) nor shall it have any liability to any person for refusing or failing to disclose such information.

(J) Any individual who sustains damage as a result of the unauthorized negligent or knowing disclosure of that individual's individually-identifiable HIV-related test result information in violation of subdivision (H) of this subdivision (20) may bring an action for appropriate relief in superior court against any person making such a disclosure. The court may award costs and reasonable attorney's fees to the individual who prevails in an action brought under this subdivision.

(K) In addition to any other remedy or sanction provided by law, after notice and opportunity for hearing the commissioner may assess an administrative penalty in an amount not to exceed $2,000.00 for each violation against any person who violates any provision of this subdivision (20) or subdivision (7)(C) of this section.

(21) Automobile glass services. In the case of claims for damage to automobile glass under a policy of insurance covering, in whole or in part, motor vehicles:

(A) Failing to inform an insured, at the time a claim is made, of the right of the insured to choose freely any company or location for providing automobile glass services.

(B) Intimidating, coercing, threatening, or misinforming an insured for the purpose of inducing the insured to use a particular company or location to provide automobile glass services.

(22) Genetic testing.

(A) Conditioning insurance rates, the provision or renewal of insurance coverage or benefits or other conditions of insurance for any individual on:

(i) any requirement or agreement of the individual to undergo genetic testing; or

(ii) the results of genetic testing of a member of the individual's family unless the results are contained in the individual's medical record.

(B) As used in this subdivision, "genetic testing" shall be defined as the term is defined in 18 V.S.A. § 9331(7).

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Vt. Stat. Ann. tit. 8, § 4725. Favored agent or insurer; coercion of debtors(a) No person may:

(1) Require, as a condition precedent to the lending of money or extension of credit, or any renewal thereof, that the person to whom such money or credit is extended or whose obligation the creditor is to acquire or finance, negotiate any policy or contract of insurance through a particular insurer or group of insurers or agent or broker or group of agents or brokers;

(2) Unreasonably disapprove the insurance policy provided by a borrower for the protection of property securing the credit or lien; for the purpose of this subdivision this disapproval shall be deemed unreasonable if it is not based solely on reasonable standards uniformly applied, relating to the extent of coverage required and the financial soundness and service of an insurer; these standards shall not discriminate against a particular type of insurer, nor shall these standards call for the disapproval of an insurance policy because the policy contains coverage in addition to that required;

(3) Require directly or indirectly that any borrower, mortgagor, purchaser, insurer, broker, or agent pay a separate charge to substitute the insurance policy of one insurer for that of another. This subdivision does not include the interest which may be charged on premium loans or premium advancements in accordance with the security instrument;

(4) Use or disclose information resulting from a requirement that a borrower, mortgagor or purchaser furnish insurance of any kind on real property being conveyed or used as collateral security to a loan, when this information is to the advantage of the mortgagee, vendor, or lender, or is to the detriment of the borrower, mortgagor, purchaser, insurer, or the agent of broker complying with this request.

(b) The commissioner may investigate any person to whom this section applies to determine whether such person has violated this section.
Vt. Stat. Ann. tit. 8, § 4725. Favored agent or insurer; coercion of debtors(a) No person may:

(1) Require, as a condition precedent to the lending of money or extension of credit, or any renewal thereof, that the person to whom such money or credit is extended or whose obligation the creditor is to acquire or finance, negotiate any policy or contract of insurance through a particular insurer or group of insurers or agent or broker or group of agents or brokers;

(2) Unreasonably disapprove the insurance policy provided by a borrower for the protection of property securing the credit or lien; for the purpose of this subdivision this disapproval shall be deemed unreasonable if it is not based solely on reasonable standards uniformly applied, relating to the extent of coverage required and the financial soundness and service of an insurer; these standards shall not discriminate against a particular type of insurer, nor shall these standards call for the disapproval of an insurance policy because the policy contains coverage in addition to that required;

(3) Require directly or indirectly that any borrower, mortgagor, purchaser, insurer, broker, or agent pay a separate charge to substitute the insurance policy of one insurer for that of another. This subdivision does not include the interest which may be charged on premium loans or premium advancements in accordance with the security instrument;

(4) Use or disclose information resulting from a requirement that a borrower, mortgagor or purchaser furnish insurance of any kind on real property being conveyed or used as collateral security to a loan, when this information is to the advantage of the mortgagee, vendor, or lender, or is to the detriment of the borrower, mortgagor, purchaser, insurer, or the agent of broker complying with this request.

(b) The commissioner may investigate any person to whom this section applies to determine whether such person has violated this section.

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Vt. Stat. Ann. tit. 8, § 4793. General license requirements.(a) No person, partnership, association or corporation shall act as or hold himself or herself out to be an insurance producer, surplus lines insurance broker, managing general agent, reinsurance intermediary, limited lines producer, consultant, insurance adjuster or insurance appraiser unless duly licensed.

(b) No insurance producer, surplus lines insurance broker or limited lines producer shall make application for, procure, negotiate for or place for others, any lines of insurance as to which he or she is not then qualified and duly licensed.

(c) No person shall investigate or negotiate settlement of any claim arising under chapters 9 and 11 of Title 21 unless the person is licensed as a workers' compensation adjuster under this subchapter.
Vt. Stat. Ann. tit. 8, § 4793. General license requirements.(a) No person, partnership, association or corporation shall act as or hold himself or herself out to be an insurance producer, surplus lines insurance broker, managing general agent, reinsurance intermediary, limited lines producer, consultant, insurance adjuster or insurance appraiser unless duly licensed.

(b) No insurance producer, surplus lines insurance broker or limited lines producer shall make application for, procure, negotiate for or place for others, any lines of insurance as to which he or she is not then qualified and duly licensed.

(c) No person shall investigate or negotiate settlement of any claim arising under chapters 9 and 11 of Title 21 unless the person is licensed as a workers' compensation adjuster under this subchapter.

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Vt. Stat. Ann. tit. 8, § 4804. License denial; nonrenewal; or termination causes(a) The commissioner may suspend, revoke, or refuse to continue or renew any license issued under this chapter if, after notice to the licensee and to the insurer represented, and opportunity for hearing, he or she finds as to the licensee any one or more of the following conditions:

(1) Providing incorrect, misleading, incomplete, or materially untrue information in the license application;

(2) Any cause for which issuance of the license could have been refused had it then existed and been known to the commissioner at the time of issuance;

(3) Violation of, or noncompliance with, any insurance laws, or for violation of any lawful rule, regulation, subpoena, or order of the commissioner or of a commissioner of another state;

(4) Obtaining or attempting to obtain any license through misrepresentation or fraud;

(5) Improperly withholding, misappropriating, or converting to his or her own use any moneys belonging to policyholders, insurers, beneficiaries or others received in the course of his or her insurance business;

(6) Misrepresentation of the terms of any actual or proposed insurance contract;

(7) Conviction of a felony or misdemeanor involving moral turpitude;

(8) The licensee has committed any unfair trade practice or fraud as defined in this title. It shall be an unfair practice under this section for a licensee to:

(A)(i) Sell, solicit, or negotiate the purchase of health insurance in this state through an advertisement which makes use directly or indirectly of any method of marketing which fails to disclose in a conspicuous manner that a purpose of the method of marketing is solicitation of insurance, and that contact will be made by an insurance agent or insurance company.

(ii) Use an appointment that was made to discuss Medicare products or to solicit the sale of Medicare products to solicit sales of any other insurance products unless the consumer requests the solicitation, and the products to be discussed are clearly identified to the consumer in writing at least 48 hours in advance of the appointment.

(iii) Solicit the sale of Medicare products door-to-door prior to receiving an invitation from a consumer.

(B) As used in this subdivision, the term "Medicare products" includes Medicare Part A, Medicare Part B, Medicare Part C, Medicare Part D, and Medicare supplement plans;

(9) In the conduct of his or her affairs, the licensee has used fraudulent, coercive, or dishonest practices, or has shown himself or herself to be incompetent, untrustworthy, or financially irresponsible;

(10) His or her license has been suspended or revoked in any other state, province, district, or territory;

(11) The licensee has forged another's name to an application for insurance or to any document related to an insurance transaction;

(12) The applicant has been found to have been cheating on an examination for an insurance license;

(13) Knowingly accepting insurance business from a person who is not licensed;

(14) Failing to comply with an administrative or court order imposing a child support obligation; or

(15) Failing to pay state income tax or comply with any administrative or court order directing payment of state income tax.

(b) The license of a business entity may be suspended, revoked or refused if the commissioner finds, after notice and opportunity for a hearing, that an individual licensee's violation was known or should have been known by one or more of the partners, officers, directors, or managers acting on behalf of the business entity, and the violation was neither reported to the commissioner nor corrective action taken.

(c) In the event that the action by the commissioner is to not renew or to deny an application for a license, he or she shall notify the applicant or licensee and advise, in writing, the applicant or licensee of the reasons for the denial or nonrenewal of the applicant's or licensee's license. The applicant or licensee may make written demand upon the commissioner within a reasonable time for a hearing before the commissioner to determine the reasonableness of the commissioner's action. The hearing shall be held within 30 days from the date of receipt of the written demand by the applicant and shall be held pursuant to chapter 25 of Title 3.

(d) In addition to or in lieu of any applicable denial, suspension or revocation of a license, any person violating this subchapter may, after hearing, be subject to an administrative penalty of not less than $500.00 nor more than $2,500.00.
Vt. Stat. Ann. tit. 8, § 4804. License denial; nonrenewal; or termination causes(a) The commissioner may suspend, revoke, or refuse to continue or renew any license issued under this chapter if, after notice to the licensee and to the insurer represented, and opportunity for hearing, he or she finds as to the licensee any one or more of the following conditions:

(1) Providing incorrect, misleading, incomplete, or materially untrue information in the license application;

(2) Any cause for which issuance of the license could have been refused had it then existed and been known to the commissioner at the time of issuance;

(3) Violation of, or noncompliance with, any insurance laws, or for violation of any lawful rule, regulation, subpoena, or order of the commissioner or of a commissioner of another state;

(4) Obtaining or attempting to obtain any license through misrepresentation or fraud;

(5) Improperly withholding, misappropriating, or converting to his or her own use any moneys belonging to policyholders, insurers, beneficiaries or others received in the course of his or her insurance business;

(6) Misrepresentation of the terms of any actual or proposed insurance contract;

(7) Conviction of a felony or misdemeanor involving moral turpitude;

(8) The licensee has committed any unfair trade practice or fraud as defined in this title. It shall be an unfair practice under this section for a licensee to:

(A)(i) Sell, solicit, or negotiate the purchase of health insurance in this state through an advertisement which makes use directly or indirectly of any method of marketing which fails to disclose in a conspicuous manner that a purpose of the method of marketing is solicitation of insurance, and that contact will be made by an insurance agent or insurance company.

(ii) Use an appointment that was made to discuss Medicare products or to solicit the sale of Medicare products to solicit sales of any other insurance products unless the consumer requests the solicitation, and the products to be discussed are clearly identified to the consumer in writing at least 48 hours in advance of the appointment.

(iii) Solicit the sale of Medicare products door-to-door prior to receiving an invitation from a consumer.

(B) As used in this subdivision, the term "Medicare products" includes Medicare Part A, Medicare Part B, Medicare Part C, Medicare Part D, and Medicare supplement plans;

(9) In the conduct of his or her affairs, the licensee has used fraudulent, coercive, or dishonest practices, or has shown himself or herself to be incompetent, untrustworthy, or financially irresponsible;

(10) His or her license has been suspended or revoked in any other state, province, district, or territory;

(11) The licensee has forged another's name to an application for insurance or to any document related to an insurance transaction;

(12) The applicant has been found to have been cheating on an examination for an insurance license;

(13) Knowingly accepting insurance business from a person who is not licensed;

(14) Failing to comply with an administrative or court order imposing a child support obligation; or

(15) Failing to pay state income tax or comply with any administrative or court order directing payment of state income tax.

(b) The license of a business entity may be suspended, revoked or refused if the commissioner finds, after notice and opportunity for a hearing, that an individual licensee's violation was known or should have been known by one or more of the partners, officers, directors, or managers acting on behalf of the business entity, and the violation was neither reported to the commissioner nor corrective action taken.

(c) In the event that the action by the commissioner is to not renew or to deny an application for a license, he or she shall notify the applicant or licensee and advise, in writing, the applicant or licensee of the reasons for the denial or nonrenewal of the applicant's or licensee's license. The applicant or licensee may make written demand upon the commissioner within a reasonable time for a hearing before the commissioner to determine the reasonableness of the commissioner's action. The hearing shall be held within 30 days from the date of receipt of the written demand by the applicant and shall be held pursuant to chapter 25 of Title 3.

(d) In addition to or in lieu of any applicable denial, suspension or revocation of a license, any person violating this subchapter may, after hearing, be subject to an administrative penalty of not less than $500.00 nor more than $2,500.00.

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Vt. Stat. Ann. tit. 8, § 5050. Findings.The general assembly makes the following findings of fact:

(1) The Dodd-Frank Wall Street Reform and Consumer Protection Act, Pub.L. 111-203, was signed into law on July 21, 2010. Title V, Subtitle B of that act is known as the Non-Admitted and Reinsurance Reform Act of 2010 (NRRA). NRRA states that:

(A) the placement of non-admitted insurance shall be subject to the statutory and regulatory requirements solely of the insured's home state; and

(B) any law, regulation, provision, or action of any state that applies or purports to apply to non-admitted insurance sold to, solicited by, or negotiated with an insured whose home state is another state shall be preempted with respect to such application; except that any state law, rule, or regulation that restricts the placement of workers' compensation insurance or excess insurance for self-funded workers' compensation plans with a non-admitted insurer shall not be preempted.

(2) In compliance with NRRA, no state other than the home state of an insured may require any premium tax payment for non-admitted insurance; and no state other than an insured's home state may require a surplus lines broker to be licensed in order to sell, solicit, or negotiate non-admitted insurance with respect to such insured.

(3) NRRA intends that the states may enter into a compact or otherwise establish procedures to allocate among the states the premium taxes paid to an insured's home state; and that each state adopt nationwide uniform requirements, forms, and procedures, such as an interstate compact, that provides for the reporting, payment, collection, and allocation of premium taxes for non-admitted insurance.

(4) After the expiration of the two-year period beginning on the date of the enactment of NRRA, a state may not collect any fees relating to licensing of an individual or entity as a surplus lines licensee in the state unless the state has in effect at such time laws or regulations that provide for participation by the state in the national insurance producer database of the National Association of Insurance Commissioners (NAIC), or any other equivalent uniform national database, for the licensure of surplus lines licensees and the renewal of such licenses.

(5) A need exists for a system of regulation that will provide for surplus lines insurance to be placed with reputable and financially sound non-admitted insurers, and that will permit orderly access to surplus lines insurance in this state and encourage insurers to make new and innovative types of insurance available to consumers in this state.

(6) Protecting the revenue of this state and other compacting states may be accomplished by facilitating the payment and collection of premium tax on non-admitted insurance and providing for allocation of premium tax for non-admitted insurance of multi-state risks among the states in accordance with uniform allocation formulas.

(7) The efficiency of the surplus lines market may be improved by eliminating duplicative and inconsistent tax and regulatory requirements among the states, and by promoting and protecting the interests of surplus lines licensees who assist such insureds and non-admitted insurers, thereby ensuring the continued availability of non-admitted insurance to consumers.

(8) Regulatory compliance with respect to non-admitted insurance placements may be streamlined by providing for exclusive single-state regulatory compliance for non-admitted insurance of multi-state risks, thereby providing certainty regarding such compliance to all persons who have an interest in such transactions, including insureds, regulators, surplus lines licensees, other insurance producers, and surplus lines insurers.

(9) Coordination of regulatory resources and expertise between state insurance departments and other state agencies, as well as state surplus lines stamping offices, with respect to non-admitted insurance will be improved under the surplus lines insurance multi-state compliance compact.

(10) By July 21, 2011, if Vermont does not enter into a compact or other reciprocal agreement with other states for the purpose of collecting, allocating, and disbursing premium taxes and fees attributable to multi-state risks, the state could lose up to 20 percent of its surplus lines premium tax collected annually. In fiscal year 2010, Vermont's surplus lines premium tax was $938,636.54. A revenue loss of 20 percent would be $187,727.31.

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Vt. Stat. Ann. tit. 8, § 5052. Purposes.The purposes of this compact are to:

(1) implement the express provisions of NRRA;

(2) protect the premium tax revenues of the compacting states through facilitating the payment and collection of premium tax on non-admitted insurance; protect the interests of the compacting states by supporting the continued availability of such insurance to consumers; and provide for allocation of premium tax for non-admitted insurance of multi-state risks among the states in accordance with uniform allocation formulas to be developed, adopted, and implemented by the commission;

(3) streamline and improve the efficiency of the surplus lines market by eliminating duplicative and inconsistent tax and regulatory requirements among the states; and promote and protect the interest of surplus lines licensees who assist such insureds and surplus lines insurers, thereby ensuring the continued availability of surplus lines insurance to consumers;

(4) streamline regulatory compliance with respect to non-admitted insurance placements by providing for exclusive single-state regulatory compliance for non-admitted insurance of multi-state risks, in accordance with rules to be adopted by the commission, thereby providing certainty regarding such compliance to all persons who have an interest in such transactions, including insureds, regulators, surplus lines licensees, other insurance producers, and surplus lines insurers;

(5) establish a clearinghouse for receipt and dissemination of premium tax and clearinghouse transaction data related to non-admitted insurance of multi-state risks, in accordance with rules adopted by the commission;

(6) improve coordination of regulatory resources and expertise between state insurance departments and other state agencies as well as state surplus lines stamping offices with respect to non-admitted insurance;

(7) adopt uniform rules to provide for premium tax payment, reporting, allocation, data collection and dissemination for non-admitted insurance of multi-state risks and single-state risks, in accordance with rules adopted by the commission, thereby promoting the overall efficiency of the non-admitted insurance market;

(8) adopt uniform mandatory rules with respect to regulatory compliance requirements for:

(A) foreign insurer eligibility requirements; and

(B) surplus lines policyholder notices;

(9) establish the surplus lines insurance multi-state compliance compact commission;

(10) coordinate reporting of clearinghouse transaction data on non-admitted insurance of multi-state risks among compacting states and contracting states; and

(11) perform these and such other related functions as may be consistent with the purposes of the compact.

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Vt. Stat. Ann. tit. 8, § 5053. Definitions.For purposes of this chapter:

(1) "Admitted insurer" means an insurer that is licensed, or authorized, to transact the business of insurance under the laws of the home state. It shall not include a domestic surplus lines insurer as may be defined by applicable state law.

(2) "Affiliate" means with respect to an insured, any entity that controls, is controlled by, or is under common control with the insured.

(3) "Allocation formula" means the uniform methods adopted by the commission by which insured risk exposures will be apportioned to each state for the purpose of calculating premium taxes due.

(4) "Bylaws" means the bylaws established by the commission for its governance, or for directing or controlling the commission's actions or conduct.

(5) "Clearinghouse" means the commission's operations involving the acceptance, processing, and dissemination, among the compacting states, contracting states, surplus lines licensees, insureds and other persons, of premium tax and clearinghouse transaction data for non-admitted insurance of multi-state risks, in accordance with this compact and rules adopted by the commission.

(6) "Clearinghouse transaction data" means the information regarding non-admitted insurance of multi-state risks required to be reported, accepted, collected, processed, and disseminated by surplus lines licensees for surplus lines insurance and insureds for independently procured insurance under this compact and rules adopted by the commission. Clearinghouse transaction data includes information related to single-state risks if a state elects to have the clearinghouse collect taxes on single-state risks for such state.

(7) "Commission" means the surplus lines insurance multi-state compliance compact commission established by this compact.

(8) "Commissioner" means the chief insurance regulatory official of a state including, commissioner, superintendent, director, or administrator, or their designees.

(9) "Compact" means the surplus lines insurance multi-state compliance compact established under this chapter.

(10) "Compacting state" means any state which has enacted this compact legislation and which has not withdrawn pursuant to subsection 5065(a), or been terminated pursuant to subsection 5065(b), of this chapter.

(11) "Contracting state" means any state which has not enacted this compact legislation but has entered into a written contract with the commission to use the services of and fully participate in the clearinghouse.

(12) "Control." An entity has "control" over another entity if:

(A) the entity directly or indirectly or acting through one or more other persons own, controls, or has the power to vote 25 percent or more of any class of voting securities of the other entity; or

(B) the entity controls in any manner the election of a majority of the directors or trustees of the other entity.

(13)(A) "Home state" means, with respect to an insured:

(i) the state in which an insured maintains its principal place of business or, in the case of an individual, the individual's principal residence; or

(ii) if 100 percent of the insured risk is located out of the state referred to in subdivision (A)(i) of this subsection, the state to which the greatest percentage of the insured's taxable premium for that insurance contract is allocated.

(B) If more than one insured from an affiliated group are named insureds on a single non-admitted insurance contract, the term "home state" means the home state, as determined pursuant to subdivision (A) of this subsection, of the member of the affiliated group that has the largest percentage of premium attributed to it under such insurance contract.

(14) "Independently procured insurance" means insurance procured by an insured directly from a surplus lines insurer or other non-admitted insurer as permitted by the laws of the home state.

(15) "Insurer eligibility requirements" means the criteria, forms, and procedures established to qualify as a surplus lines insurer under the law of the home state provided that such criteria, forms, and procedures are consistent with the express provisions of NRRA on and after July 21, 2011.

(16) "Member" means the person or persons chosen by a compacting state as its representative or representatives to the commission provided that each compacting state shall be limited to one vote.

(17) "Multi-state risk" means a risk with insured exposures in more than one state.

(18) "Non-admitted insurance" means surplus lines insurance and independently procured insurance.

(19) "Non-admitted insurer" means an insurer that is not authorized or admitted to transact the business of insurance under the law of the home state.

(20) "Noncompacting state" means any state which has not adopted this compact.

(21) "NRRA" means the Non-Admitted and Reinsurance Reform Act of 2010 which is Title V, Subtitle B of the Dodd-Frank Wall Street Reform and Consumer Protection Act, Pub.L. 111-203.

(22) "Policyholder notice" means the disclosure notice or stamp that is required to be furnished to the applicant or policyholder in connection with a surplus lines insurance placement.

(23) "Premium tax" means with respect to non-admitted insurance, any tax, fee, assessment, or other charge imposed by a government entity directly or indirectly based on any payment made as consideration for such insurance, including premium deposits, assessments, registration fees, and any other compensation given in consideration for a contract of insurance.

(24) "Principal place of business" means with respect to determining the home state of the insured, the state where the insured maintains its headquarters and where the insured's high-level officers direct, control and coordinate the business activities of the insured.

(25) "Purchasing group" means any group formed pursuant to the Liability Risk Retention Act of 1986, Pub.L. 99-563, which has as one of its purposes the purchase of liability insurance on a group basis, purchases such insurance only for its group members and only to cover their similar or related liability exposure and is composed of members whose businesses or activities are similar or related with respect to the liability to which members are exposed by virtue of any related, similar, or common business, trade, product, services, premises or operations and is domiciled in any state.

(26) "Rule" means a statement of general or particular applicability and future effect adopted by the commission designed to implement, interpret, or prescribe law or policy or describing the organization, procedure, or practice requirements of the commission which shall have the force and effect of law in the compacting states.

(27) "Single-state risk" means a risk with insured exposures in only one state.

(28) "State" means any state, district, or territory of the United States of America.

(29) "State transaction documentation" means the information required under the laws of the home state to be filed by surplus lines licensees in order to report surplus lines insurance and verify compliance with surplus lines laws, and by insureds in order to report independently procured insurance.

(30) "Surplus lines insurance" means insurance procured by a surplus lines licensee from a surplus lines insurer or other non-admitted insurer as permitted under the law of the home state. It shall also mean excess lines insurance as may be defined by applicable state law.

(31) "Surplus lines insurer" means a non-admitted insurer eligible under the law of the home state to accept business from a surplus lines licensee. It shall also mean an insurer which is permitted to write surplus lines insurance under the laws of the state where such insurer is domiciled.

(32) "Surplus lines licensee" means an individual, firm, or corporation licensed under the law of the home state to place surplus lines insurance.

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Vt. Stat. Ann. tit. 8, § 5108. Prohibited practices.Section 4724 of this title relating to unfair trade practices shall be construed to apply to health maintenance organizations, except to the extent that the commissioner determines that the nature of health maintenance organizations renders such section clearly inappropriate.Vt. Stat. Ann. tit. 8, § 5108. Prohibited practices.Section 4724 of this title relating to unfair trade practices shall be construed to apply to health maintenance organizations, except to the extent that the commissioner determines that the nature of health maintenance organizations renders such section clearly inappropriate.

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Vt. Stat. Ann. tit. 8, § 8081. Purpose.The purpose of this chapter is to promote the public interest, to promote the availability of long-term care insurance policies, to protect applicants for long-term care insurance from unfair or deceptive sales or enrollment practices, to establish standards for long-term care insurance, to facilitate public understanding and comparison of long-term care insurance policies, and to facilitate flexibility and innovation in the development of long-term care insurance coverage. Vt. Stat. Ann. tit. 8, § 8081. Purpose.The purpose of this chapter is to promote the public interest, to promote the availability of long-term care insurance policies, to protect applicants for long-term care insurance from unfair or deceptive sales or enrollment practices, to establish standards for long-term care insurance, to facilitate public understanding and comparison of long-term care insurance policies, and to facilitate flexibility and innovation in the development of long-term care insurance coverage.

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Vt. Stat. Ann. tit. 8, § 8082. Definitions.As used in this chapter:

(1) "Applicant" means:

(A) In the case of an individual long-term care insurance policy, the individual who seeks to contract for benefits.

(B) In the case of a group long-term care insurance policy, the proposed certificate holder.

(2) "Certificate" means, for the purposes of this chapter, any certificate issued under a group long-term care insurance policy, which policy has been delivered or issued for delivery in this state.

(3) "Commissioner" means the commissioner of banking, insurance, securities, and health care administration.

(4) "Group long-term care insurance" means a long-term care insurance policy that is delivered or issued for delivery in this state and issued to:

(A) One or more employers or labor organizations or to a trust or to the trustees of a fund established by one or more employers or labor organizations, or a combination thereof, for employees or former employees or a combination thereof, or for members or former members or a combination thereof, of the labor organizations;

(B) Any professional, trade, or occupational association for its members or former or retired members, or combination thereof, if the association:

(i) is composed of individuals all of whom are or were actively engaged in the same profession, trade, or occupation; and

(ii) has been maintained in good faith for purposes other than obtaining insurance; or

(C)(i) An association or a trust or the trustees of a fund established, created, or maintained for the benefit of members of one or more associations. Prior to advertising, marketing, or offering the policy within this state, the association or associations or the insurer of the association or associations shall file evidence with the commissioner that the association or associations have at the outset a minimum of 100 persons and have been organized and maintained in good faith for purposes other than that of obtaining insurance; have been in active existence for at least one year; and have a constitution and bylaws that provide that:

(I) The association or associations hold regular meetings not less than annually to further purposes of the members;

(II) Except for credit unions, the association or associations collect dues or solicit contributions from members; and

(III) The members have voting privileges and representation on the governing board and committees.

(ii) Forty-five days after the filing, the association or associations will be deemed to satisfy the organizational requirements, unless the commissioner makes a finding that the association or associations do not satisfy those organizational requirements.

(D) A group other than as described in subdivisions (A), (B), and (C) of this subdivision (4), subject to a finding by the commissioner that:

(i) The issuance of the group policy is not contrary to the best interest of the public;

(ii) The issuance of the group policy would result in economies of acquisition or administration; and

(iii) The benefits are reasonable in relation to the premiums charged.

(5) "Long-term care insurance" means any insurance policy or rider advertised, marketed, offered or designed to provide coverage for not less than 12 consecutive months for each covered person on an expense incurred, indemnity, prepaid, or other basis, for one or more necessary or medically necessary diagnostic, preventive, therapeutic, rehabilitative, maintenance, or personal care services provided in a setting other than an acute care unit of a hospital. The term includes group and individual annuities and life insurance policies or riders that provide directly or supplement long-term care insurance. The term also includes a policy or rider that provides for payment of benefits based upon cognitive impairment or the loss of functional capacity. The term also includes qualified long-term care insurance contracts. Long-term care insurance may be issued by insurers, fraternal benefit societies, nonprofit health, hospital, and medical service corporations, prepaid health plans,

health maintenance organizations, or any similar organization to the extent it is otherwise authorized to issue life or health insurance. Long-term care insurance shall not include any insurance policy that is offered primarily to provide basic Medicare supplement coverage, basic hospital expense coverage, basic medical-surgical expense coverage, hospital confinement indemnity coverage, major medical expense coverage, disability income or related asset-protection coverage, accident only coverage, specified disease or specified accident coverage, or limited benefit health coverage. With regard to life insurance, this term does not include life insurance policies that accelerate the death benefit specifically for one or more of the qualifying events of terminal illness, medical conditions requiring extraordinary medical intervention or permanent institutional confinement, and that provide the option of a lump-sum payment for those benefits where neither the benefits nor the eligibility f

or the benefits is conditioned upon the receipt of long-term care. Notwithstanding any other provision of this chapter, any product advertised, marketed, or offered as long-term care insurance shall be subject to the provisions of this chapter.

(6) "Policy" means, for the purposes of this chapter, any policy, contract, subscriber agreement, rider, or endorsement delivered or issued for delivery in this state by an insurer, fraternal benefit society, nonprofit health, hospital, or medical service corporation, prepaid health plan, health maintenance organization, or any similar organization.

(7)(A) "Qualified long-term care insurance contract" or "federally tax-qualified long-term care insurance contract" means an individual or group insurance contract that meets the requirements of Section 7702B(b) of the Internal Revenue Code of 1986, as amended, as follows:

(i) The only insurance protection provided under the contract is coverage of qualified long-term care services. A contract shall not fail to satisfy the requirements of this subdivision by reason of payments being made on a per diem or other periodic basis without regard to the expenses incurred during the period to which the payments relate.

(ii) The contract does not pay or reimburse expenses incurred for services or items to the extent that the expenses are reimbursable under Title XVIII of the Social Security Act, as amended, or would be so reimbursable but for the application of a deductible or coinsurance amount. The requirements of this subdivision do not apply to expenses that are reimbursable under Title XVIII of the Social Security Act only as a secondary payer. A contract shall not fail to satisfy the requirements of this subdivision by reason of payments being made on a per diem or other periodic basis without regard to the expenses incurred during the period to which the payments relate.

(iii) The contract is guaranteed renewable, within the meaning of Section 7702B(b)(1)(C) of the Internal Revenue Code of 1986, as amended.

(iv) The contract does not provide for a cash surrender value or other money that can be paid, assigned, pledged as collateral for a loan, or borrowed except as provided in subdivision (v) of this subdivision (7)(A).

(v) All refunds of premiums and all policyholder dividends or similar amounts under the contract are to be applied as a reduction in future premiums or to increase future benefits, except that a refund on the event of the death of the insured or a complete surrender or cancellation of the contract cannot exceed the aggregate premiums paid under the contract.

(vi) The contract meets the consumer protection provisions set forth in Subsection 7702B(g) of the Internal Revenue Code of 1986, as amended.

(B) "Qualified long-term care insurance contract" or "federally tax-qualified long-term care insurance contract" also means the portion of a life insurance contract that provides long-term care insurance coverage by rider or as part of the contract and that satisfies the requirements of Subsections 7702B(b) and (e) of the Internal Revenue Code of 1986, as amended.
Vt. Stat. Ann. tit. 8, § 8082. Definitions.As used in this chapter:

(1) "Applicant" means:

(A) In the case of an individual long-term care insurance policy, the individual who seeks to contract for benefits.

(B) In the case of a group long-term care insurance policy, the proposed certificate holder.

(2) "Certificate" means, for the purposes of this chapter, any certificate issued under a group long-term care insurance policy, which policy has been delivered or issued for delivery in this state.

(3) "Commissioner" means the commissioner of banking, insurance, securities, and health care administration.

(4) "Group long-term care insurance" means a long-term care insurance policy that is delivered or issued for delivery in this state and issued to:

(A) One or more employers or labor organizations or to a trust or to the trustees of a fund established by one or more employers or labor organizations, or a combination thereof, for employees or former employees or a combination thereof, or for members or former members or a combination thereof, of the labor organizations;

(B) Any professional, trade, or occupational association for its members or former or retired members, or combination thereof, if the association:

(i) is composed of individuals all of whom are or were actively engaged in the same profession, trade, or occupation; and

(ii) has been maintained in good faith for purposes other than obtaining insurance; or

(C)(i) An association or a trust or the trustees of a fund established, created, or maintained for the benefit of members of one or more associations. Prior to advertising, marketing, or offering the policy within this state, the association or associations or the insurer of the association or associations shall file evidence with the commissioner that the association or associations have at the outset a minimum of 100 persons and have been organized and maintained in good faith for purposes other than that of obtaining insurance; have been in active existence for at least one year; and have a constitution and bylaws that provide that:

(I) The association or associations hold regular meetings not less than annually to further purposes of the members;

(II) Except for credit unions, the association or associations collect dues or solicit contributions from members; and

(III) The members have voting privileges and representation on the governing board and committees.

(ii) Forty-five days after the filing, the association or associations will be deemed to satisfy the organizational requirements, unless the commissioner makes a finding that the association or associations do not satisfy those organizational requirements.

(D) A group other than as described in subdivisions (A), (B), and (C) of this subdivision (4), subject to a finding by the commissioner that:

(i) The issuance of the group policy is not contrary to the best interest of the public;

(ii) The issuance of the group policy would result in economies of acquisition or administration; and

(iii) The benefits are reasonable in relation to the premiums charged.

(5) "Long-term care insurance" means any insurance policy or rider advertised, marketed, offered or designed to provide coverage for not less than 12 consecutive months for each covered person on an expense incurred, indemnity, prepaid, or other basis, for one or more necessary or medically necessary diagnostic, preventive, therapeutic, rehabilitative, maintenance, or personal care services provided in a setting other than an acute care unit of a hospital. The term includes group and individual annuities and life insurance policies or riders that provide directly or supplement long-term care insurance. The term also includes a policy or rider that provides for payment of benefits based upon cognitive impairment or the loss of functional capacity. The term also includes qualified long-term care insurance contracts. Long-term care insurance may be issued by insurers, fraternal benefit societies, nonprofit health, hospital, and medical service corporations, prepaid health plans,

health maintenance organizations, or any similar organization to the extent it is otherwise authorized to issue life or health insurance. Long-term care insurance shall not include any insurance policy that is offered primarily to provide basic Medicare supplement coverage, basic hospital expense coverage, basic medical-surgical expense coverage, hospital confinement indemnity coverage, major medical expense coverage, disability income or related asset-protection coverage, accident only coverage, specified disease or specified accident coverage, or limited benefit health coverage. With regard to life insurance, this term does not include life insurance policies that accelerate the death benefit specifically for one or more of the qualifying events of terminal illness, medical conditions requiring extraordinary medical intervention or permanent institutional confinement, and that provide the option of a lump-sum payment for those benefits where neither the benefits nor the eligibility f

or the benefits is conditioned upon the receipt of long-term care. Notwithstanding any other provision of this chapter, any product advertised, marketed, or offered as long-term care insurance shall be subject to the provisions of this chapter.

(6) "Policy" means, for the purposes of this chapter, any policy, contract, subscriber agreement, rider, or endorsement delivered or issued for delivery in this state by an insurer, fraternal benefit society, nonprofit health, hospital, or medical service corporation, prepaid health plan, health maintenance organization, or any similar organization.

(7)(A) "Qualified long-term care insurance contract" or "federally tax-qualified long-term care insurance contract" means an individual or group insurance contract that meets the requirements of Section 7702B(b) of the Internal Revenue Code of 1986, as amended, as follows:

(i) The only insurance protection provided under the contract is coverage of qualified long-term care services. A contract shall not fail to satisfy the requirements of this subdivision by reason of payments being made on a per diem or other periodic basis without regard to the expenses incurred during the period to which the payments relate.

(ii) The contract does not pay or reimburse expenses incurred for services or items to the extent that the expenses are reimbursable under Title XVIII of the Social Security Act, as amended, or would be so reimbursable but for the application of a deductible or coinsurance amount. The requirements of this subdivision do not apply to expenses that are reimbursable under Title XVIII of the Social Security Act only as a secondary payer. A contract shall not fail to satisfy the requirements of this subdivision by reason of payments being made on a per diem or other periodic basis without regard to the expenses incurred during the period to which the payments relate.

(iii) The contract is guaranteed renewable, within the meaning of Section 7702B(b)(1)(C) of the Internal Revenue Code of 1986, as amended.

(iv) The contract does not provide for a cash surrender value or other money that can be paid, assigned, pledged as collateral for a loan, or borrowed except as provided in subdivision (v) of this subdivision (7)(A).

(v) All refunds of premiums and all policyholder dividends or similar amounts under the contract are to be applied as a reduction in future premiums or to increase future benefits, except that a refund on the event of the death of the insured or a complete surrender or cancellation of the contract cannot exceed the aggregate premiums paid under the contract.

(vi) The contract meets the consumer protection provisions set forth in Subsection 7702B(g) of the Internal Revenue Code of 1986, as amended.

(B) "Qualified long-term care insurance contract" or "federally tax-qualified long-term care insurance contract" also means the portion of a life insurance contract that provides long-term care insurance coverage by rider or as part of the contract and that satisfies the requirements of Subsections 7702B(b) and (e) of the Internal Revenue Code of 1986, as amended.

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Vt. Stat. Ann. tit. 8, § 8084a. Required disclosure of rating practices to consumers.(a) Other than policies for which no applicable premium rate or rate schedule increases can be made, insurers shall provide all of the information listed in this subsection to the applicant at the time of application or enrollment, unless the method of application does not allow for delivery at that time. In such a case, an insurer shall provide all of the information listed in this subsection to the applicant no later than at the time of delivery of the policy or certificate.

(1) A statement that the policy may be subject to rate increases in the future;

(2) An explanation of potential future premium rate revisions and the policyholder's or certificate holder's option in the event of a premium rate revision;

(3) The premium rate or rate schedules applicable to the applicant that will be in effect until a request is made for an increase;

(4) A general explanation for applying premium rate or rate schedule adjustments that shall include:

(A) A description of when premium rate or rate schedule adjustments will be effective; and

(B) The right to a revised premium rate or rate schedule as provided in subdivision (2) of this subsection if the premium rate or rate schedule is changed;

(5) Information regarding each premium rate increase on this policy form or similar policy forms over the past ten years for this state or any other state that, at a minimum, identifies:

(A) The policy forms for which premium rates have been increased;

(B) The calendar years during which the form was available for purchase; and

(C) The amount or percent of each increase. The percentage may be expressed as a percentage of the premium rate prior to the increase, and may also be expressed as minimum and maximum percentages if the rate increase is variable by rating characteristics.

(b) In certain circumstances, the commissioner may waive the disclosures required to be made by an insurer under subdivision (a)(5) of this section where such disclosures relate to blocks of business acquired by such an insurer from nonaffiliated insurers or the long-term care policies acquired from nonaffiliated insurers, and when the increases which would otherwise be required to be disclosed occurred prior to the acquisition of such block or policies. Similarly, the commissioner may waive the premium disclosures required by subdivision (a)(5), as relates to a rate increase on a long-term care policy form acquired from nonaffiliated insurers or a block of policy forms acquired from nonaffiliated insurers on or before the end of a 24-month period following the acquisition of the block of policies, and where disclosure of the rate increase had been made by the selling insurer prior to the acquisition. When making a decision to waive the disclosures required under subdivision (a)(5)

of this section, the commissioner shall consider such factors as whether making the disclosures would be unfair or punitive to the acquiring insurer and whether nondisclosure would harm Vermont consumers.

(c) The insurer may, in a fair manner, provide explanatory information related to the rate increases.

(d) An applicant shall, at the time of application, unless the method of application does not allow for acknowledgment at that time, in such a case, no later than at the time of delivery of the policy or certificate, sign an acknowledgment that the insurer made the disclosure required under subdivisions (a)(1) and (5) of this section.

(e) An insurer shall provide notice of an upcoming premium rate schedule increase to all policyholders or certificate holders, if applicable, at least 45 days prior to the implementation of the premium rate schedule increase by the insurer. The notice shall include the information required by subsection (a) of this section when the rate increase is implemented.
Vt. Stat. Ann. tit. 8, § 8084a. Required disclosure of rating practices to consumers.(a) Other than policies for which no applicable premium rate or rate schedule increases can be made, insurers shall provide all of the information listed in this subsection to the applicant at the time of application or enrollment, unless the method of application does not allow for delivery at that time. In such a case, an insurer shall provide all of the information listed in this subsection to the applicant no later than at the time of delivery of the policy or certificate.

(1) A statement that the policy may be subject to rate increases in the future;

(2) An explanation of potential future premium rate revisions and the policyholder's or certificate holder's option in the event of a premium rate revision;

(3) The premium rate or rate schedules applicable to the applicant that will be in effect until a request is made for an increase;

(4) A general explanation for applying premium rate or rate schedule adjustments that shall include:

(A) A description of when premium rate or rate schedule adjustments will be effective; and

(B) The right to a revised premium rate or rate schedule as provided in subdivision (2) of this subsection if the premium rate or rate schedule is changed;

(5) Information regarding each premium rate increase on this policy form or similar policy forms over the past ten years for this state or any other state that, at a minimum, identifies:

(A) The policy forms for which premium rates have been increased;

(B) The calendar years during which the form was available for purchase; and

(C) The amount or percent of each increase. The percentage may be expressed as a percentage of the premium rate prior to the increase, and may also be expressed as minimum and maximum percentages if the rate increase is variable by rating characteristics.

(b) In certain circumstances, the commissioner may waive the disclosures required to be made by an insurer under subdivision (a)(5) of this section where such disclosures relate to blocks of business acquired by such an insurer from nonaffiliated insurers or the long-term care policies acquired from nonaffiliated insurers, and when the increases which would otherwise be required to be disclosed occurred prior to the acquisition of such block or policies. Similarly, the commissioner may waive the premium disclosures required by subdivision (a)(5), as relates to a rate increase on a long-term care policy form acquired from nonaffiliated insurers or a block of policy forms acquired from nonaffiliated insurers on or before the end of a 24-month period following the acquisition of the block of policies, and where disclosure of the rate increase had been made by the selling insurer prior to the acquisition. When making a decision to waive the disclosures required under subdivision (a)(5)

of this section, the commissioner shall consider such factors as whether making the disclosures would be unfair or punitive to the acquiring insurer and whether nondisclosure would harm Vermont consumers.

(c) The insurer may, in a fair manner, provide explanatory information related to the rate increases.

(d) An applicant shall, at the time of application, unless the method of application does not allow for acknowledgment at that time, in such a case, no later than at the time of delivery of the policy or certificate, sign an acknowledgment that the insurer made the disclosure required under subdivisions (a)(1) and (5) of this section.

(e) An insurer shall provide notice of an upcoming premium rate schedule increase to all policyholders or certificate holders, if applicable, at least 45 days prior to the implementation of the premium rate schedule increase by the insurer. The notice shall include the information required by subsection (a) of this section when the rate increase is implemented.

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Vt. Stat. Ann. tit. 8, § 10101. Application of consumer protection chapter.Except as otherwise provided in this chapter, the provisions of this chapter shall apply to all financial institutions, as defined in subdivision 11101(32) of this title, licensed lenders, mortgage brokers, sales finance companies and credit unions doing or soliciting business in this state, in addition to any other applicable consumer protection or remedy section not contained in this chapter, unless such consumer protection or remedy section is expressly made exclusive.

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Vt. Stat. Ann. tit. 8, § 10202. Definitions. As used in this subchapter:

(1) "Account verification service" means any person which, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of:

(A) assembling information on the frequency and location of depository account openings or attempted openings by a consumer, or forced closings by a depository institution of accounts of a consumer; or

(B) authenticating or validating Social Security numbers or addresses for the purpose of reporting to third parties for use in fraud prevention. Mailing such information to a customer to the address provided by such customer shall not be prohibited by this subchapter.

(2) "Credit reporting agency" means any person who, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of reporting to third parties on the credit rating or creditworthiness of any consumer.

(3) "Customer" means, for purposes of this subchapter, any person who deposits, borrows or invests with a financial institution, including a surety or a guarantor on a loan.

(4) "Financial information" means an original or copy of, or information derived from:

(A) a document that grants signature authority over a deposit or share account;

(B) a statement, ledger card or other record of a deposit or share account that shows transactions in or with respect to that deposit or account;

(C) a check, clear draft or money order that is drawn on a financial institution or issued and payable by or through a financial institution;

(D) any item, other than an institutional or periodic charge, that is made under an agreement between a financial institution and another person's deposit or share account;

(E) any information that relates to a loan account or an application for a loan; or

(F) evidence of a transaction conducted by electronic or telephonic means.

(5) "Financial institution" means a financial institution as defined in subdivision 11101(32) of this title, and a credit union, financial institution subsidiary, licensed lender, mortgage broker or sales finance company organized or regulated under the laws of this state, the United States or any other state or territory.

(6) "Mercantile agency" means any person, which for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating business credit information or other information on businesses for the purpose of reporting to third parties on the credit rating or creditworthiness of any business.
Vt. Stat. Ann. tit. 8, § 10202. Definitions. As used in this subchapter:

(1) "Account verification service" means any person which, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of:

(A) assembling information on the frequency and location of depository account openings or attempted openings by a consumer, or forced closings by a depository institution of accounts of a consumer; or

(B) authenticating or validating Social Security numbers or addresses for the purpose of reporting to third parties for use in fraud prevention. Mailing such information to a customer to the address provided by such customer shall not be prohibited by this subchapter.

(2) "Credit reporting agency" means any person who, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of reporting to third parties on the credit rating or creditworthiness of any consumer.

(3) "Customer" means, for purposes of this subchapter, any person who deposits, borrows or invests with a financial institution, including a surety or a guarantor on a loan.

(4) "Financial information" means an original or copy of, or information derived from:

(A) a document that grants signature authority over a deposit or share account;

(B) a statement, ledger card or other record of a deposit or share account that shows transactions in or with respect to that deposit or account;

(C) a check, clear draft or money order that is drawn on a financial institution or issued and payable by or through a financial institution;

(D) any item, other than an institutional or periodic charge, that is made under an agreement between a financial institution and another person's deposit or share account;

(E) any information that relates to a loan account or an application for a loan; or

(F) evidence of a transaction conducted by electronic or telephonic means.

(5) "Financial institution" means a financial institution as defined in subdivision 11101(32) of this title, and a credit union, financial institution subsidiary, licensed lender, mortgage broker or sales finance company organized or regulated under the laws of this state, the United States or any other state or territory.

(6) "Mercantile agency" means any person, which for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating business credit information or other information on businesses for the purpose of reporting to third parties on the credit rating or creditworthiness of any business.

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Vt. Stat. Ann. tit. 8, § 10403. Prohibition on discrimination based on sex, marital status, race, color, religion, national origin, age, sexual orientation, gender identity, or handicapping condition
(a) No financial institution shall discriminate against any applicant for credit services on the basis of the sex, marital status, race, color, religion, national origin, age, sexual orientation, gender identity, or handicapping condition of the applicant, provided the applicant has the legal capacity to contract.

(b) The department of banking, insurance, securities, and health care administration shall prescribe rules and regulations necessary to carry out the provisions of this section.

(c) Definitions. As used in this section:

(1) "Adverse action" means denial, revocation, or termination of credit services. The term does not include a change in the terms of an account expressly agreed to by an applicant, nor any action or forbearance relating to an account taken in connection with inactivity, default, or delinquency as to that account.

(2) "Applicant" means any person who applies to a financial institution directly for an extension, renewal, or continuation of credit, or applies to a financial institution indirectly by use of an existing credit plan for an amount exceeding a previously established credit limit.

(3) "Application" means an oral or written request for an extension of credit that is made in accordance with procedures established by a financial institution for the type of credit requested. The term does not include the use of an account or line of credit to obtain an amount of credit that is within a previously established credit limit. A completed application means an application in connection with which a financial institution has received all the information that the financial institution regularly obtains and considers in evaluating applications for the amount and type of credit requested (including, but not limited to, credit reports, any additional information requested from the applicant, and any approvals or reports by governmental agencies or other persons that are necessary to guarantee, insure, or provide security for the credit or collateral). The financial institution shall exercise reasonable diligence in obtaining such information.

(4) "Credit services" means credit cards, personal loans, mortgage loans, and commercial loans.

(5) "Financial institutions" means Vermont financial institutions, credit unions, and licensed lenders.

(6) "Handicapping condition" applied to an applicant means a handicapped individual as defined in 21 V.S.A. § 495d(5).. For the purposes of this section, an applicant with a handicapping condition does not include an alcoholic or drug abuser who, by reason of current alcohol or drug use, constitutes an unacceptable credit risk.

(7) "Person" means a natural person, a corporation, government or governmental subdivision or agency, trust, estate, partnership, cooperative, association, or other entity.

(d) Notification requirements:

(1) Within 30 days of reaching a decision on a completed application, a financial institution shall notify the applicant of its decision on the application.

(2) Each applicant against whom adverse action is taken shall receive a written statement of reasons for such action from the financial institution.

(3) For commercial credit only, a statement of reasons meets the requirements of this section only if it contains the specific reasons for the adverse action taken, and cites the specific documentation or business judgment which supports the adverse decision on the application. Consumer credit shall be governed by the Equal Credit Opportunity Act (15 U.S.C. 1691 et seq.) and regulations adopted thereunder.

(4) Financial institutions shall be required to maintain a copy of all "statements of reasons" and the documentation upon which the decision was based for 24 months after the date of issuance.

(e) Civil enforcement. A financial institution that discriminates against an applicant in violation of this section shall be liable to the applicant for punitive damages, actual damages sustained by the applicant as a result of the discrimination and for costs and a reasonable attorney's fee as determined by the court.
Vt. Stat. Ann. tit. 8, § 10403. Prohibition on discrimination based on sex, marital status, race, color, religion, national origin, age, sexual orientation, gender identity, or handicapping condition
(a) No financial institution shall discriminate against any applicant for credit services on the basis of the sex, marital status, race, color, religion, national origin, age, sexual orientation, gender identity, or handicapping condition of the applicant, provided the applicant has the legal capacity to contract.

(b) The department of banking, insurance, securities, and health care administration shall prescribe rules and regulations necessary to carry out the provisions of this section.

(c) Definitions. As used in this section:

(1) "Adverse action" means denial, revocation, or termination of credit services. The term does not include a change in the terms of an account expressly agreed to by an applicant, nor any action or forbearance relating to an account taken in connection with inactivity, default, or delinquency as to that account.

(2) "Applicant" means any person who applies to a financial institution directly for an extension, renewal, or continuation of credit, or applies to a financial institution indirectly by use of an existing credit plan for an amount exceeding a previously established credit limit.

(3) "Application" means an oral or written request for an extension of credit that is made in accordance with procedures established by a financial institution for the type of credit requested. The term does not include the use of an account or line of credit to obtain an amount of credit that is within a previously established credit limit. A completed application means an application in connection with which a financial institution has received all the information that the financial institution regularly obtains and considers in evaluating applications for the amount and type of credit requested (including, but not limited to, credit reports, any additional information requested from the applicant, and any approvals or reports by governmental agencies or other persons that are necessary to guarantee, insure, or provide security for the credit or collateral). The financial institution shall exercise reasonable diligence in obtaining such information.

(4) "Credit services" means credit cards, personal loans, mortgage loans, and commercial loans.

(5) "Financial institutions" means Vermont financial institutions, credit unions, and licensed lenders.

(6) "Handicapping condition" applied to an applicant means a handicapped individual as defined in 21 V.S.A. § 495d(5).. For the purposes of this section, an applicant with a handicapping condition does not include an alcoholic or drug abuser who, by reason of current alcohol or drug use, constitutes an unacceptable credit risk.

(7) "Person" means a natural person, a corporation, government or governmental subdivision or agency, trust, estate, partnership, cooperative, association, or other entity.

(d) Notification requirements:

(1) Within 30 days of reaching a decision on a completed application, a financial institution shall notify the applicant of its decision on the application.

(2) Each applicant against whom adverse action is taken shall receive a written statement of reasons for such action from the financial institution.

(3) For commercial credit only, a statement of reasons meets the requirements of this section only if it contains the specific reasons for the adverse action taken, and cites the specific documentation or business judgment which supports the adverse decision on the application. Consumer credit shall be governed by the Equal Credit Opportunity Act (15 U.S.C. 1691 et seq.) and regulations adopted thereunder.

(4) Financial institutions shall be required to maintain a copy of all "statements of reasons" and the documentation upon which the decision was based for 24 months after the date of issuance.

(e) Civil enforcement. A financial institution that discriminates against an applicant in violation of this section shall be liable to the applicant for punitive damages, actual damages sustained by the applicant as a result of the discrimination and for costs and a reasonable attorney's fee as determined by the court.

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Vt. Stat. Ann. tit. 8, § 11404. Reports required under consumer protection chapterA financial institution shall file with the commissioner reports as required by chapter 200 of this title on the following:

(1) community reinvestment activities; and

(2) basic banking.
Vt. Stat. Ann. tit. 8, § 11404. Reports required under consumer protection chapterA financial institution shall file with the commissioner reports as required by chapter 200 of this title on the following:

(1) community reinvestment activities; and

(2) basic banking.

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Vt. Stat. Ann. tit. 9, § 41b. Rent-to-own agreements; disclosure of terms.
(a) The attorney general shall adopt by rule standards for the full and conspicuous disclosure to consumers of the terms of rent-to-own agreements. For purposes of this section a rent-to-own agreement means an agreement for the use of merchandise by a consumer for personal, family, or household purposes, for an initial period of four months or less, that is renewable with each payment after the initial period and that permits the lessee to become the owner of the property. An agreement that complies with this article is not a retail installment sales contract, agreement or obligation as defined in this chapter or a security interest as defined in section 1-201(37) of Title 9A.

(b) The attorney general, or an aggrieved person, may enforce a violation of the rules adopted pursuant to this section as an unfair or deceptive act or practice in commerce under section 2453 of this title.
Vt. Stat. Ann. tit. 9, § 41b. Rent-to-own agreements; disclosure of terms.
(a) The attorney general shall adopt by rule standards for the full and conspicuous disclosure to consumers of the terms of rent-to-own agreements. For purposes of this section a rent-to-own agreement means an agreement for the use of merchandise by a consumer for personal, family, or household purposes, for an initial period of four months or less, that is renewable with each payment after the initial period and that permits the lessee to become the owner of the property. An agreement that complies with this article is not a retail installment sales contract, agreement or obligation as defined in this chapter or a security interest as defined in section 1-201(37) of Title 9A.

(b) The attorney general, or an aggrieved person, may enforce a violation of the rules adopted pursuant to this section as an unfair or deceptive act or practice in commerce under section 2453 of this title.

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Vt. Stat. Ann. tit. 9, § 41c. Rent-to-own; assistive devices.(a) As used in this section:

(1) "Assistive device" means any item, piece of equipment, or product system, whether acquired commercially off-the-shelf, modified, or customized, that is used or designed to be used to increase, maintain, or improve any functional capability of an individual with disabilities. An assistive device system, that as a whole is within the definition of this term, is itself an assistive device, and, in such cases, this term also applies to each component product of the assistive device system that is itself ordinarily an assistive device. This term includes, but is not limited to:

(A) wheelchairs and scooters of any kind, and other aids that enhance the mobility or positioning of an individual, such as motorization, motorized positioning features, and the switches and controls for any motorized features;

(B) computer equipment with voice output, artificial larynges, voice amplification devices, and other alternative and augmentative communication devices or any devices used for the purpose of communication;

(C) computer equipment and reading devices with voice output, optical scanners, talking software, braille printers, and other aids and devices that provide access to text;

(D) hearing aids, telephone communication devices for the deaf, and other assistive listening devices;

(E) voice recognition computer equipment, software and hardware accommodations, switches, and other forms of alternative access to computers;

(F) environmental control units;

(G) simple mechanical aids that enhance the functional capabilities of an individual with disabilities; and

(H) durable medical equipment.

(2) "Assistive devise lessee" means an individual with a disability or a person renting or leasing on behalf of an individual with a disability who is renting or leasing an assistive device for the purpose of increasing, maintaining or improving any functional capability related to the individual's disability.

(b) A person in the business of renting, or renting to own an assistive device to assistive device lessees, who rents an assistive device for more than 60 days or who rents an assistive device to own shall offer such assistive device lessees a purchase option with reasonable terms and conditions. Such a purchase option may be exercised at any time by the assistive device lessees, the reasonable terms and conditions of which shall be included with the consumer's periodic billing.

(1) A person in the business of renting products that may be assistive devices may include the following question in its rental application:

ARE YOU RENTING THIS PRODUCT AS AN ACCOMMODATION FOR A DISABILITY OR AS AN ASSISTIVE DEVICE?

YES ________ NO ________

(A) If an assistive device lessee answers "yes" to the question or requests additional information, the business entity shall provide the following statement:

ASSISTIVE DEVICE PURCHASE OPTION RIGHTS

IF YOU ARE RENTING THIS PRODUCT AS AN ACCOMMODATION FOR A DISABILITY OR AS AN ASSISTIVE DEVICE, THE DEALER IS REQUIRED TO OFFER YOU A RENTAL TRANSACTION THAT INCLUDES A PURCHASE OPTION. UNDER THE PURCHASE OPTION YOU MAY ACQUIRE OWNERSHIP OF THE PRODUCT AT ANYTIME BY TENDERING AN AMOUNT EQUAL TO THE CASH PRICE OF THE PRODUCT LESS 50% OF ALL PREVIOUS RENTAL PAYMENTS YOU HAVE MADE. OR, ONCE YOU HAVE MADE RENTAL PAYMENTS EQUAL TO 200% OF THE CASH PRICE YOU MAY ACQUIRE OWNERSHIP OF THE PRODUCT BY PAYING $1.00.

BEFORE YOU DETERMINE WHETHER TO ELECT A TRANSACTION WITH OR WITHOUT A PURCHASE OPTION, THE PERSON IN THE BUSINESS OF RENTING OR RENTING TO OWN THE ASSISTIVE DEVICE MUST FULLY DISCLOSE THE TERMS OF BOTH TRANSACTIONS.

THE VALUE OF A PURCHASE OPTION DEPENDS ON MANY FACTORS, WHICH MAY INCLUDE: (1) HOW LONG YOU INTEND TO USE THE PRODUCT; (2) THE CASH PRICE OF THE PRODUCT; AND (3) THE COST OF MAINTAINING THE PRODUCT.

ASSISTIVE DEVICE PURCHASE OPTION RIGHTS: IF YOU ELECT A RENTAL TRANSACTION WITHOUT A PURCHASE OPTION AND YOU CHANGE YOUR MIND AT A LATER DATE AND DECIDE TO ENTER INTO A PURCHASE OPTION TRANSACTION, PAYMENTS THAT YOU HAVE MADE WILL NOT BE APPLIED TO THE NEW TRANSACTIONS.

(B) The rental dealer may add additional information or explanations to the information required by subdivision (A) of this subsection, as long as the additional information is not stated, utilized, or placed in a manner that will confuse the assistive device lessee or that will contradict, obscure or distract attention from the required information. The additional information or explanation shall not have the effect of circumventing, evading, or complicating the information required by subdivision (A) of this subsection.

(2) Failure to comply with this section is not a violation if the assistive device lessee fails to inform the rental dealer that the product is being rented as an assistive device after the rental dealer makes the written inquiry in subdivision (b)(1) of this section.

(c)(1) When periodic payments made by an assistive device lessee, exclusive of payments for service, total 200 percent of the bona fide cash price, the person in the business of renting or renting to own the assistive device shall notify the individual with a disability and the assistive device lessee that the individual with a disability and the assistive device lessee have the option of acquiring ownership of the assistive device upon payment of $1.00, at which time the rental or rent-to-own agreement shall terminate.

(2) The term "bona fide cash price" means the price at which a merchant, in the ordinary course of business, and taking into account the value of the merchandise and its retail price in the trade area, would offer to sell the merchandise to consumers for cash.

(d) Under a rent to own program, at any time after the initial payment, the assistive device lessee may acquire ownership of the property by tendering an amount equal to the cash price of the merchandise minus 50 percent of all previous rental-purchase payments made.

(e) When an assistive device lessee has acquired ownership of an assistive device under this section, the person in the business of renting or renting to own shall offer, for a reasonable price and term, a contract to maintain and service the device.

(f) This section shall not apply to assistive devices provided pursuant to a Medicare or Medicaid contract that either includes provisions for the acquisition of ownership or prohibits purchase or the acquisition of ownership by an assistive device lessee.

(g) A violation of this section is deemed to be an unfair or deceptive act or practice in commerce and a violation of chapter 63 of this title and all remedies and penalties available to a consumer or the attorney general under that chapter shall apply, and the attorney general shall have the same authority to make rules, conduct civil investigations and enter into assurances of discontinuance as provided under subchapter 1 of chapter 63 of this title.
Vt. Stat. Ann. tit. 9, § 41c. Rent-to-own; assistive devices.(a) As used in this section:

(1) "Assistive device" means any item, piece of equipment, or product system, whether acquired commercially off-the-shelf, modified, or customized, that is used or designed to be used to increase, maintain, or improve any functional capability of an individual with disabilities. An assistive device system, that as a whole is within the definition of this term, is itself an assistive device, and, in such cases, this term also applies to each component product of the assistive device system that is itself ordinarily an assistive device. This term includes, but is not limited to:

(A) wheelchairs and scooters of any kind, and other aids that enhance the mobility or positioning of an individual, such as motorization, motorized positioning features, and the switches and controls for any motorized features;

(B) computer equipment with voice output, artificial larynges, voice amplification devices, and other alternative and augmentative communication devices or any devices used for the purpose of communication;

(C) computer equipment and reading devices with voice output, optical scanners, talking software, braille printers, and other aids and devices that provide access to text;

(D) hearing aids, telephone communication devices for the deaf, and other assistive listening devices;

(E) voice recognition computer equipment, software and hardware accommodations, switches, and other forms of alternative access to computers;

(F) environmental control units;

(G) simple mechanical aids that enhance the functional capabilities of an individual with disabilities; and

(H) durable medical equipment.

(2) "Assistive devise lessee" means an individual with a disability or a person renting or leasing on behalf of an individual with a disability who is renting or leasing an assistive device for the purpose of increasing, maintaining or improving any functional capability related to the individual's disability.

(b) A person in the business of renting, or renting to own an assistive device to assistive device lessees, who rents an assistive device for more than 60 days or who rents an assistive device to own shall offer such assistive device lessees a purchase option with reasonable terms and conditions. Such a purchase option may be exercised at any time by the assistive device lessees, the reasonable terms and conditions of which shall be included with the consumer's periodic billing.

(1) A person in the business of renting products that may be assistive devices may include the following question in its rental application:

ARE YOU RENTING THIS PRODUCT AS AN ACCOMMODATION FOR A DISABILITY OR AS AN ASSISTIVE DEVICE?

YES ________ NO ________

(A) If an assistive device lessee answers "yes" to the question or requests additional information, the business entity shall provide the following statement:

ASSISTIVE DEVICE PURCHASE OPTION RIGHTS

IF YOU ARE RENTING THIS PRODUCT AS AN ACCOMMODATION FOR A DISABILITY OR AS AN ASSISTIVE DEVICE, THE DEALER IS REQUIRED TO OFFER YOU A RENTAL TRANSACTION THAT INCLUDES A PURCHASE OPTION. UNDER THE PURCHASE OPTION YOU MAY ACQUIRE OWNERSHIP OF THE PRODUCT AT ANYTIME BY TENDERING AN AMOUNT EQUAL TO THE CASH PRICE OF THE PRODUCT LESS 50% OF ALL PREVIOUS RENTAL PAYMENTS YOU HAVE MADE. OR, ONCE YOU HAVE MADE RENTAL PAYMENTS EQUAL TO 200% OF THE CASH PRICE YOU MAY ACQUIRE OWNERSHIP OF THE PRODUCT BY PAYING $1.00.

BEFORE YOU DETERMINE WHETHER TO ELECT A TRANSACTION WITH OR WITHOUT A PURCHASE OPTION, THE PERSON IN THE BUSINESS OF RENTING OR RENTING TO OWN THE ASSISTIVE DEVICE MUST FULLY DISCLOSE THE TERMS OF BOTH TRANSACTIONS.

THE VALUE OF A PURCHASE OPTION DEPENDS ON MANY FACTORS, WHICH MAY INCLUDE: (1) HOW LONG YOU INTEND TO USE THE PRODUCT; (2) THE CASH PRICE OF THE PRODUCT; AND (3) THE COST OF MAINTAINING THE PRODUCT.

ASSISTIVE DEVICE PURCHASE OPTION RIGHTS: IF YOU ELECT A RENTAL TRANSACTION WITHOUT A PURCHASE OPTION AND YOU CHANGE YOUR MIND AT A LATER DATE AND DECIDE TO ENTER INTO A PURCHASE OPTION TRANSACTION, PAYMENTS THAT YOU HAVE MADE WILL NOT BE APPLIED TO THE NEW TRANSACTIONS.

(B) The rental dealer may add additional information or explanations to the information required by subdivision (A) of this subsection, as long as the additional information is not stated, utilized, or placed in a manner that will confuse the assistive device lessee or that will contradict, obscure or distract attention from the required information. The additional information or explanation shall not have the effect of circumventing, evading, or complicating the information required by subdivision (A) of this subsection.

(2) Failure to comply with this section is not a violation if the assistive device lessee fails to inform the rental dealer that the product is being rented as an assistive device after the rental dealer makes the written inquiry in subdivision (b)(1) of this section.

(c)(1) When periodic payments made by an assistive device lessee, exclusive of payments for service, total 200 percent of the bona fide cash price, the person in the business of renting or renting to own the assistive device shall notify the individual with a disability and the assistive device lessee that the individual with a disability and the assistive device lessee have the option of acquiring ownership of the assistive device upon payment of $1.00, at which time the rental or rent-to-own agreement shall terminate.

(2) The term "bona fide cash price" means the price at which a merchant, in the ordinary course of business, and taking into account the value of the merchandise and its retail price in the trade area, would offer to sell the merchandise to consumers for cash.

(d) Under a rent to own program, at any time after the initial payment, the assistive device lessee may acquire ownership of the property by tendering an amount equal to the cash price of the merchandise minus 50 percent of all previous rental-purchase payments made.

(e) When an assistive device lessee has acquired ownership of an assistive device under this section, the person in the business of renting or renting to own shall offer, for a reasonable price and term, a contract to maintain and service the device.

(f) This section shall not apply to assistive devices provided pursuant to a Medicare or Medicaid contract that either includes provisions for the acquisition of ownership or prohibits purchase or the acquisition of ownership by an assistive device lessee.

(g) A violation of this section is deemed to be an unfair or deceptive act or practice in commerce and a violation of chapter 63 of this title and all remedies and penalties available to a consumer or the attorney general under that chapter shall apply, and the attorney general shall have the same authority to make rules, conduct civil investigations and enter into assurances of discontinuance as provided under subchapter 1 of chapter 63 of this title.

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Vt. Stat. Ann. tit. 9, § 43. Deposit requirement prohibited; exception.A lender shall not, as a condition to granting or extending a loan, require a borrower to keep or place any sum on deposit with the lender or nominee of the lender, except for deposit arrangements directly related to secured credit cards in a manner consistent with rules adopted by the commissioner, rules that shall include disclosure requirements, and specific types of alternative mortgages approved by the commissioner as provided in 8 V.S.A. § 1256. Vt. Stat. Ann. tit. 9, § 43. Deposit requirement prohibited; exception.A lender shall not, as a condition to granting or extending a loan, require a borrower to keep or place any sum on deposit with the lender or nominee of the lender, except for deposit arrangements directly related to secured credit cards in a manner consistent with rules adopted by the commissioner, rules that shall include disclosure requirements, and specific types of alternative mortgages approved by the commissioner as provided in 8 V.S.A. § 1256.

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Vt. Stat. Ann. tit. 9, § 287. Consumer disclosures.
(a) Consent to Electronic Records. Notwithstanding other provisions of this chapter, if a statute, regulation, or other rule of law requires that information relating to a transaction or transactions be provided or made available to a consumer in writing, the use of an electronic record to provide or make available (whichever is required) such information satisfies the requirement that such information be in writing if:

(1) The consumer has affirmatively consented to such use and has not withdrawn such consent.

(2) The consumer, prior to consenting, is provided with a clear and conspicuous statement:

(A) informing the consumer of:

(i) any right or option of the consumer to have the record provided or made available on paper or in nonelectronic form; and

(ii) the right of the consumer to withdraw the consent to have the record provided or made available in an electronic form and of any conditions, consequences (which may include termination of the parties' relationship), or fees in the event of such withdrawal;

(B) informing the consumer of whether the consent applies only to the particular transaction which gave rise to the obligation to provide the record, or to identified categories of records that may be provided or made available during the course of the parties' relationship;

(C) describing the procedures the consumer must use to withdraw consent as provided in subdivision (a)(2)(A)(ii) of this section and to update information needed to contact the consumer electronically; and

(D) informing the consumer how, after the consent, the consumer may, upon request, obtain a paper copy of an electronic record, and whether any fee will be charged for such copy.

(3) The consumer:

(A) prior to consenting, is provided with a statement of the hardware and software requirements for access to and retention of the electronic records; and

(B) consents electronically, or confirms his or her consent electronically, in a manner that reasonably demonstrates that the consumer can access information in the electronic form that will be used to provide the information that is the subject of the consent.

(4) After the consent of a consumer in accordance with subdivision (a)(1) of this section, if a change in the hardware or software requirements needed to access or retain electronic records creates a material risk that the consumer will not be able to access or retain a subsequent electronic record that was the subject of the consent, the person providing the electronic record shall:

(A) provide the consumer with a statement of:

(i) the revised hardware and software requirements for access to and retention of the electronic records; and

(ii) the right to withdraw consent without the imposition of any fees for such withdrawal and without the imposition of any condition or consequence that was not disclosed under subdivision (a)(2)(A) of this section.

(B) again comply with subdivision (a)(3) of this section.

(b) Other Rights.

(1) Preservation of Consumer Protections. Nothing in this title affects the content or timing of any disclosure or other record required to be provided or made available to any consumer under any statute, regulation, or other rule of law.

(2) Verification or Acknowledgment. If a law that was enacted prior to July 1, 2003 expressly requires a record to be provided or made available by a specified method that requires verification or acknowledgment of receipt, the record may be provided or made available electronically only if the method used provides verification or acknowledgment of receipt (whichever is required).

(c) Effect of Failure to Obtain Electronic Consent or Confirmation of Consent. The legal effectiveness, validity, or enforceability of any contract executed by a consumer shall not be denied solely because of the failure to obtain electronic consent or confirmation of consent by that consumer in accordance with subdivision (a)(3)(B).

(d) Prospective Effect. Withdrawal of consent by a consumer shall not affect the legal effectiveness, validity, or enforceability of electronic records provided or made available to that consumer in accordance with subsection (a) prior to implementation of the consumer's withdrawal of consent. A consumer's withdrawal of consent shall be effective within a reasonable period of time after receipt of the withdrawal by the provider of the record. Failure to comply with subdivision (a)(4) may, at the election of the consumer, be treated as a withdrawal of consent for purposes of this section.

(e) Prior Consent. This section does not apply to any records that are provided or made available to a consumer who has consented prior to the effective date of this title to receive such records in electronic form as permitted by any statute, regulation, or other rule of law.

(f) Oral Communications. An oral communication or a recording of an oral communication shall not qualify as an electronic record for purposes of this section except as otherwise provided under applicable law.
Vt. Stat. Ann. tit. 9, § 287. Consumer disclosures.
(a) Consent to Electronic Records. Notwithstanding other provisions of this chapter, if a statute, regulation, or other rule of law requires that information relating to a transaction or transactions be provided or made available to a consumer in writing, the use of an electronic record to provide or make available (whichever is required) such information satisfies the requirement that such information be in writing if:

(1) The consumer has affirmatively consented to such use and has not withdrawn such consent.

(2) The consumer, prior to consenting, is provided with a clear and conspicuous statement:

(A) informing the consumer of:

(i) any right or option of the consumer to have the record provided or made available on paper or in nonelectronic form; and

(ii) the right of the consumer to withdraw the consent to have the record provided or made available in an electronic form and of any conditions, consequences (which may include termination of the parties' relationship), or fees in the event of such withdrawal;

(B) informing the consumer of whether the consent applies only to the particular transaction which gave rise to the obligation to provide the record, or to identified categories of records that may be provided or made available during the course of the parties' relationship;

(C) describing the procedures the consumer must use to withdraw consent as provided in subdivision (a)(2)(A)(ii) of this section and to update information needed to contact the consumer electronically; and

(D) informing the consumer how, after the consent, the consumer may, upon request, obtain a paper copy of an electronic record, and whether any fee will be charged for such copy.

(3) The consumer:

(A) prior to consenting, is provided with a statement of the hardware and software requirements for access to and retention of the electronic records; and

(B) consents electronically, or confirms his or her consent electronically, in a manner that reasonably demonstrates that the consumer can access information in the electronic form that will be used to provide the information that is the subject of the consent.

(4) After the consent of a consumer in accordance with subdivision (a)(1) of this section, if a change in the hardware or software requirements needed to access or retain electronic records creates a material risk that the consumer will not be able to access or retain a subsequent electronic record that was the subject of the consent, the person providing the electronic record shall:

(A) provide the consumer with a statement of:

(i) the revised hardware and software requirements for access to and retention of the electronic records; and

(ii) the right to withdraw consent without the imposition of any fees for such withdrawal and without the imposition of any condition or consequence that was not disclosed under subdivision (a)(2)(A) of this section.

(B) again comply with subdivision (a)(3) of this section.

(b) Other Rights.

(1) Preservation of Consumer Protections. Nothing in this title affects the content or timing of any disclosure or other record required to be provided or made available to any consumer under any statute, regulation, or other rule of law.

(2) Verification or Acknowledgment. If a law that was enacted prior to July 1, 2003 expressly requires a record to be provided or made available by a specified method that requires verification or acknowledgment of receipt, the record may be provided or made available electronically only if the method used provides verification or acknowledgment of receipt (whichever is required).

(c) Effect of Failure to Obtain Electronic Consent or Confirmation of Consent. The legal effectiveness, validity, or enforceability of any contract executed by a consumer shall not be denied solely because of the failure to obtain electronic consent or confirmation of consent by that consumer in accordance with subdivision (a)(3)(B).

(d) Prospective Effect. Withdrawal of consent by a consumer shall not affect the legal effectiveness, validity, or enforceability of electronic records provided or made available to that consumer in accordance with subsection (a) prior to implementation of the consumer's withdrawal of consent. A consumer's withdrawal of consent shall be effective within a reasonable period of time after receipt of the withdrawal by the provider of the record. Failure to comply with subdivision (a)(4) may, at the election of the consumer, be treated as a withdrawal of consent for purposes of this section.

(e) Prior Consent. This section does not apply to any records that are provided or made available to a consumer who has consented prior to the effective date of this title to receive such records in electronic form as permitted by any statute, regulation, or other rule of law.

(f) Oral Communications. An oral communication or a recording of an oral communication shall not qualify as an electronic record for purposes of this section except as otherwise provided under applicable law.

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Vt. Stat. Ann. tit. 9, § 2435. Notice of security breaches.
(a) This section shall be known as the Security Breach Notice Act.

(b) Notice of breach.

(1) Except as set forth in subsection (d) of this section, any data collector that owns or licenses computerized personal information that includes personal information concerning a consumer shall notify the consumer that there has been a security breach following discovery or notification to the data collector of the breach. Notice of the breach shall be made in the most expedient time possible and without unreasonable delay, consistent with the legitimate needs of the law enforcement agency, as provided in subdivision (3) of this subsection, or with any measures necessary to determine the scope of the breach and restore the reasonable integrity, security, and confidentiality of the data system.

(2) Any data collector that maintains or possesses computerized data containing personal information of a consumer that the business does not own or license or any data collector that conducts business in Vermont that maintains or possesses records or data containing personal information that the data collector does not own or license shall notify the owner or licensee of the information of any security breach immediately following discovery of the breach, consistent with the legitimate needs of law enforcement as provided in subdivision (3) of this subsection.

(3) The notice required by this subsection shall be delayed upon request of a law enforcement agency. A law enforcement agency may request the delay if it believes that notification may impede a law enforcement investigation, or a national or homeland security investigation or jeopardize public safety or national or homeland security interests. In the event law enforcement makes the request in a manner other than in writing, the data collector shall document such request contemporaneously in writing, including the name of the law enforcement officer making the request and the officer's law enforcement agency engaged in the investigation. A law enforcement agency shall promptly notify the data collector when the law enforcement agency no longer believes that notification may impede a law enforcement investigation, or a national or homeland security investigation or jeopardize public safety or national or homeland security interests. The data collector shall provide notice requi

red by this section without unreasonable delay upon receipt of a written communication, which includes facsimile or electronic communication, from the law enforcement agency withdrawing its request for delay.

(4) The notice shall be clear and conspicuous. The notice shall include a description of the following:

(A) The incident in general terms.

(B) The type of personal information that was subject to the unauthorized access or acquisition.

(C) The general acts of the business to protect the personal information from further unauthorized access or acquisition.

(D) A toll-free telephone number that the consumer may call for further information and assistance.

(E) Advice that directs the consumer to remain vigilant by reviewing account statements and monitoring free credit reports.

(5) For purposes of this subsection, notice to consumers may be provided by one of the following methods:

(A) Direct notice to consumers, which may be by one of the following methods:

(i) Written notice mailed to the consumer's residence;

(ii) Electronic notice, for those consumers for whom the data collector has a valid e-mail address if:

(I) the data collector does not have contact information set forth in subdivisions (i) and (iii) of this subdivision (5)(A), the data collector's primary method of communication with the consumer is by electronic means, the electronic notice does not request or contain a hypertext link to a request that the consumer provide personal information, and the electronic notice conspicuously warns consumers not to provide personal information in response to electronic communications regarding security breaches; or

(II) the notice provided is consistent with the provisions regarding electronic records and signatures for notices as set forth in 15 U.S.C. § 7001; or

(iii) Telephonic notice, provided that telephonic contact is made directly with each affected consumer, and the telephonic contact is not through a prerecorded message.

(B) Substitute notice, if the data collector demonstrates that the cost of providing written or telephonic notice, pursuant to subdivision (A)(i) or (iii) of this subdivision (5), to affected consumers would exceed $5,000.00 or that the affected class of affected consumers to be provided written or telephonic notice, pursuant to subdivision (A)(i) or (iii) of this subdivision (5), exceeds 5,000, or the data collector does not have sufficient contact information. Substitute notice shall consist of all of the following:

(i) conspicuous posting of the notice on the data collector's website page if the data collector maintains one; and

(ii) notification to major statewide and regional media.

(c) In the event a data collector provides notice to more than 1,000 consumers at one time pursuant to this section, the data collector shall notify, without unreasonable delay, all consumer reporting agencies that compile and maintain files on consumers on a nationwide basis, as defined in 15 U.S.C. § 1681a(p), of the timing, distribution, and content of the notice. This subsection shall not apply to a person who is licensed or registered under Title 8 by the department of banking, insurance, securities, and health care administration.

(d)(1) Notice of a security breach pursuant to subsection (b) of this section is not required if the data collector establishes that misuse of personal information is not reasonably possible and the data collector provides notice of the determination that the misuse of the personal information is not reasonably possible pursuant to the requirements of this subsection. If the data collector establishes that misuse of the personal information is not reasonably possible, the data collector shall provide notice of its determination that misuse of the personal information is not reasonably possible and a detailed explanation for said determination to the Vermont attorney general or to the department of banking, insurance, securities, and health care administration in the event that the data collector is a person or entity licensed or registered with the department under Title 8 or this title. The data collector may designate its notice and detailed explanation to the Vermont attorney gen

eral or the department of banking, insurance, securities, and health care administration as "trade secret" if the notice and detailed explanation meet the definition of trade secret contained in subdivision 317(c)(9) of Title 1.

(2) If a data collector established that misuse of personal information was not reasonably possible under subdivision (1) of this subsection, and subsequently obtains facts indicating that misuse of the personal information has occurred or is occurring, the data collector shall provide notice of the security breach pursuant to subsection (b) of this section.

(e) Any waiver of the provisions of this subchapter is contrary to public policy and is void and unenforceable.

(f) A financial institution that is subject to the following guidances, and any revisions, additions, or substitutions relating to said interagency guidance shall be exempt from this section:

(1) The Federal Interagency Guidance Response Programs for Unauthorized Access to Consumer Information and Customer Notice, issued on March 7, 2005, by the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and the Office of Thrift Supervision; or

(2) Final Guidance on Response Programs for Unauthorized Access to Member Information and Member Notice, issued on April 14, 2005, by the National Credit Union Administration.

(g) Enforcement.

(1) With respect to all data collectors and other entities subject to this subchapter, other than a person or entity licensed or registered with the department of banking, insurance, securities, and health care administration under Title 8 or this title, the attorney general and state's attorney shall have sole and full authority to investigate potential violations of this subchapter and to enforce, prosecute, obtain and impose remedies for a violation of this subchapter or any rules or regulations made pursuant to this chapter as the attorney general and state's attorney have under chapter 63 of this title. The attorney general may refer the matter to the state's attorney in an appropriate case. The superior courts shall have jurisdiction over any enforcement matter brought by the attorney general or a state's attorney under this subsection.

(2) With respect to a data collector that is a person or entity licensed or registered with the department of banking, insurance, securities, and health care administration under Title 8 or this title, the department of banking, insurance, securities and health care administration shall have the full authority to investigate potential violations of this subchapter and to prosecute, obtain, and impose remedies for a violation of this subchapter or any rules or regulations adopted pursuant to this subchapter, as the department has under Title 8 or this title or any other applicable law or regulation.

Subsection (h) repealed effective June 30, 2012; see note set out below.

(h) Vermont law enforcement agencies, including the department of public safety, shall not be considered a data collector. Except as provided in subdivisions (b)(2) and (b)(3) of this section, Vermont law enforcement agencies, including the department of public safety, shall be exempt from this subchapter.
Vt. Stat. Ann. tit. 9, § 2435. Notice of security breaches.
(a) This section shall be known as the Security Breach Notice Act.

(b) Notice of breach.

(1) Except as set forth in subsection (d) of this section, any data collector that owns or licenses computerized personal information that includes personal information concerning a consumer shall notify the consumer that there has been a security breach following discovery or notification to the data collector of the breach. Notice of the breach shall be made in the most expedient time possible and without unreasonable delay, consistent with the legitimate needs of the law enforcement agency, as provided in subdivision (3) of this subsection, or with any measures necessary to determine the scope of the breach and restore the reasonable integrity, security, and confidentiality of the data system.

(2) Any data collector that maintains or possesses computerized data containing personal information of a consumer that the business does not own or license or any data collector that conducts business in Vermont that maintains or possesses records or data containing personal information that the data collector does not own or license shall notify the owner or licensee of the information of any security breach immediately following discovery of the breach, consistent with the legitimate needs of law enforcement as provided in subdivision (3) of this subsection.

(3) The notice required by this subsection shall be delayed upon request of a law enforcement agency. A law enforcement agency may request the delay if it believes that notification may impede a law enforcement investigation, or a national or homeland security investigation or jeopardize public safety or national or homeland security interests. In the event law enforcement makes the request in a manner other than in writing, the data collector shall document such request contemporaneously in writing, including the name of the law enforcement officer making the request and the officer's law enforcement agency engaged in the investigation. A law enforcement agency shall promptly notify the data collector when the law enforcement agency no longer believes that notification may impede a law enforcement investigation, or a national or homeland security investigation or jeopardize public safety or national or homeland security interests. The data collector shall provide notice requi

red by this section without unreasonable delay upon receipt of a written communication, which includes facsimile or electronic communication, from the law enforcement agency withdrawing its request for delay.

(4) The notice shall be clear and conspicuous. The notice shall include a description of the following:

(A) The incident in general terms.

(B) The type of personal information that was subject to the unauthorized access or acquisition.

(C) The general acts of the business to protect the personal information from further unauthorized access or acquisition.

(D) A toll-free telephone number that the consumer may call for further information and assistance.

(E) Advice that directs the consumer to remain vigilant by reviewing account statements and monitoring free credit reports.

(5) For purposes of this subsection, notice to consumers may be provided by one of the following methods:

(A) Direct notice to consumers, which may be by one of the following methods:

(i) Written notice mailed to the consumer's residence;

(ii) Electronic notice, for those consumers for whom the data collector has a valid e-mail address if:

(I) the data collector does not have contact information set forth in subdivisions (i) and (iii) of this subdivision (5)(A), the data collector's primary method of communication with the consumer is by electronic means, the electronic notice does not request or contain a hypertext link to a request that the consumer provide personal information, and the electronic notice conspicuously warns consumers not to provide personal information in response to electronic communications regarding security breaches; or

(II) the notice provided is consistent with the provisions regarding electronic records and signatures for notices as set forth in 15 U.S.C. § 7001; or

(iii) Telephonic notice, provided that telephonic contact is made directly with each affected consumer, and the telephonic contact is not through a prerecorded message.

(B) Substitute notice, if the data collector demonstrates that the cost of providing written or telephonic notice, pursuant to subdivision (A)(i) or (iii) of this subdivision (5), to affected consumers would exceed $5,000.00 or that the affected class of affected consumers to be provided written or telephonic notice, pursuant to subdivision (A)(i) or (iii) of this subdivision (5), exceeds 5,000, or the data collector does not have sufficient contact information. Substitute notice shall consist of all of the following:

(i) conspicuous posting of the notice on the data collector's website page if the data collector maintains one; and

(ii) notification to major statewide and regional media.

(c) In the event a data collector provides notice to more than 1,000 consumers at one time pursuant to this section, the data collector shall notify, without unreasonable delay, all consumer reporting agencies that compile and maintain files on consumers on a nationwide basis, as defined in 15 U.S.C. § 1681a(p), of the timing, distribution, and content of the notice. This subsection shall not apply to a person who is licensed or registered under Title 8 by the department of banking, insurance, securities, and health care administration.

(d)(1) Notice of a security breach pursuant to subsection (b) of this section is not required if the data collector establishes that misuse of personal information is not reasonably possible and the data collector provides notice of the determination that the misuse of the personal information is not reasonably possible pursuant to the requirements of this subsection. If the data collector establishes that misuse of the personal information is not reasonably possible, the data collector shall provide notice of its determination that misuse of the personal information is not reasonably possible and a detailed explanation for said determination to the Vermont attorney general or to the department of banking, insurance, securities, and health care administration in the event that the data collector is a person or entity licensed or registered with the department under Title 8 or this title. The data collector may designate its notice and detailed explanation to the Vermont attorney gen

eral or the department of banking, insurance, securities, and health care administration as "trade secret" if the notice and detailed explanation meet the definition of trade secret contained in subdivision 317(c)(9) of Title 1.

(2) If a data collector established that misuse of personal information was not reasonably possible under subdivision (1) of this subsection, and subsequently obtains facts indicating that misuse of the personal information has occurred or is occurring, the data collector shall provide notice of the security breach pursuant to subsection (b) of this section.

(e) Any waiver of the provisions of this subchapter is contrary to public policy and is void and unenforceable.

(f) A financial institution that is subject to the following guidances, and any revisions, additions, or substitutions relating to said interagency guidance shall be exempt from this section:

(1) The Federal Interagency Guidance Response Programs for Unauthorized Access to Consumer Information and Customer Notice, issued on March 7, 2005, by the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and the Office of Thrift Supervision; or

(2) Final Guidance on Response Programs for Unauthorized Access to Member Information and Member Notice, issued on April 14, 2005, by the National Credit Union Administration.

(g) Enforcement.

(1) With respect to all data collectors and other entities subject to this subchapter, other than a person or entity licensed or registered with the department of banking, insurance, securities, and health care administration under Title 8 or this title, the attorney general and state's attorney shall have sole and full authority to investigate potential violations of this subchapter and to enforce, prosecute, obtain and impose remedies for a violation of this subchapter or any rules or regulations made pursuant to this chapter as the attorney general and state's attorney have under chapter 63 of this title. The attorney general may refer the matter to the state's attorney in an appropriate case. The superior courts shall have jurisdiction over any enforcement matter brought by the attorney general or a state's attorney under this subsection.

(2) With respect to a data collector that is a person or entity licensed or registered with the department of banking, insurance, securities, and health care administration under Title 8 or this title, the department of banking, insurance, securities and health care administration shall have the full authority to investigate potential violations of this subchapter and to prosecute, obtain, and impose remedies for a violation of this subchapter or any rules or regulations adopted pursuant to this subchapter, as the department has under Title 8 or this title or any other applicable law or regulation.

Subsection (h) repealed effective June 30, 2012; see note set out below.

(h) Vermont law enforcement agencies, including the department of public safety, shall not be considered a data collector. Except as provided in subdivisions (b)(2) and (b)(3) of this section, Vermont law enforcement agencies, including the department of public safety, shall be exempt from this subchapter.

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Vt. Stat. Ann. tit. 9, § 2440. Social security number protection.
(a) This section shall be known as the Social Security Number Protection Act.

(b) Except as provided in subsection (c) of this section, a business may not do any of the following:

(1) Intentionally communicate or otherwise make available to the general public an individual's Social Security number.

(2) Intentionally print or imbed an individual's Social Security number on any card required for the individual to access products or services provided by the person or entity.

(3) Require an individual to transmit his or her Social Security number over the internet unless the connection is secure or the Social Security number is encrypted.

(4) Require an individual to use his or her Social Security number to access an internet website, unless a password or unique personal identification number or other authentication device is also required to access the internet website.

(5) Print an individual's Social Security number on any materials that are mailed to the individual, unless state or federal law requires the Social Security number to be on the document to be mailed.

(6) Sell, lease, lend, trade, rent, or otherwise intentionally disclose an individual's Social Security number to a third party without written consent to the disclosure from the individual, when the party making the disclosure knows or in the exercise of reasonable diligence would have reason to believe that the third party lacks a legitimate purpose for obtaining the individual's Social Security number.

(c) Subsection (b) of this section shall not apply:

(1) When a Social Security number is included in an application or in documents related to an enrollment process, or to establish, amend, or terminate an account, contract, or policy; or to confirm the accuracy of the Social Security number for the purpose of obtaining a credit report pursuant to 15 U.S.C. § 1681(b)(2). A Social Security number that is permitted to be mailed under this section may not be printed, in whole or in part, on a postcard or other mailer not requiring an envelope, or visible on an envelope without the envelope having been opened.

(2) To the collection, use, or release of a Social Security number reasonably necessary for administrative purposes or internal verification.

(3) To the opening of an account or the provision of or payment for a product or service authorized by an individual.

(4) To the collection, use, or release of a Social Security number to investigate or prevent fraud; conduct background checks; conduct social or scientific research; collect a debt; obtain a credit report from or furnish data to a consumer reporting agency pursuant to the fair credit reporting act, 15 U.S.C. § 1681, et seq.; undertake a permissible purpose enumerated under Gramm Leach Bliley, 12 C.F.R. § 216.13-15; or locate an individual who is missing, is a lost relative, or is due a benefit, such as a pension, insurance, or unclaimed property benefit.

(5) To a business acting pursuant to a court order, warrant, subpoena, or when otherwise required by law, or in response to a facially valid discovery request pursuant to rules applicable to a court or administrative body that has jurisdiction over the disclosing entity.

(6) To a business providing the Social Security number to a federal, state, or local government entity, including a law enforcement agency, the department of public safety, and a court, or their agents or assigns.

(7) To a Social Security number that has been redacted.

(8)(A) To a business that has used, prior to January 1, 2007, an individual's Social Security number in a manner inconsistent with subsection (b) of this section, which may continue using that individual's Social Security number in that manner on or after January 1, 2007, if all of the following conditions are met:

(i) The use of the Social Security number is continuous. If the use is stopped for any reason, subsection (b) of this section shall apply.

(ii) The individual is provided an annual disclosure that informs the individual that he or she has the right to stop the use of his or her Social Security number in a manner prohibited by subsection (b) of this section.

(iii) A written request by an individual to stop the use of his or her Social Security number in a manner prohibited by subsection (b) of this section is implemented within 30 days of the receipt of the request. There shall not be a fee or charge for implementing the request.

(iv) The person or entity does not deny services to an individual because the individual makes a written request pursuant to this subsection.

(B) Nothing in this subdivision (8) is intended to apply to the collection, use or dissemination of Social Security numbers collected prior to January 1, 2007 and exempted from the provisions of subsection (b) of this section pursuant to subdivisions (1) through (7) or (9) and (10) of this subsection.

(9) To information obtained from a recorded document in the official records of the town clerk or municipality.

(10) To information obtained from a document filed in the official records of the courts.

(d) Except as provided in subsection (e) of this section, the state and any state agency, political subdivision of the state, and agent or employee of the state, a state agency, or a political subdivision of the state, may not do any of the following:

(1) Collect a Social Security number from an individual unless authorized or required by law, state or federal regulation, or grant agreement to do so or unless the collection of the Social Security number or records containing the Social Security number is related to the performance of that agency's duties and responsibilities as prescribed by law.

(2) Fail, when collecting a Social Security number from an individual in a hard copy format, to segregate that number on a separate page from the rest of the record, or as otherwise appropriate, in order that the Social Security number can be more easily redacted pursuant to a valid public records request.

(3) Fail, when collecting a Social Security number from an individual, to provide, at the time of or prior to the actual collection of the Social Security number by that agency, that individual, upon request, with a statement of the purpose or purposes for which the Social Security number is being collected and used.

(4) Use the Social Security number for any purpose other than the purpose set forth in the statement required under subdivision (3) of this subsection.

(5) Intentionally communicate or otherwise make available to the general public a person's Social Security number.

(6) Intentionally print or imbed an individual's Social Security number on any card required for the individual to access government services.

(7) Require an individual to transmit the individual's Social Security number over the internet, unless the connection is secure or the Social Security number is encrypted.

(8) Require an individual to use the individual's Social Security number to access an internet website, unless a password or unique personal identification number or other authentication device is also required to access the internet website.

(9) Print an individual's Social Security number on any materials that are mailed to the individual, unless a state or federal law, regulation, or grant agreement requires that the Social Security number be on the document to be mailed. A Social Security number that is permitted to be mailed under this subdivision may not be printed, in whole or in part, on a postcard or other mailer not requiring an envelope, or visible on an envelope, without the envelope having been opened.

(e) Subsection (d) of this section does not apply to:

(1) Social Security numbers disclosed to another governmental entity or its agents, employees, contractors, grantees, or grantors of a governmental entity if disclosure is necessary for the receiving entity to perform its duties and responsibilities. The receiving governmental entity and its agents, employees, and contractors shall maintain the confidential and exempt status of such numbers. As used in this subsection, "necessary" means reasonably needed to promote the efficient, accurate, or economical conduct of an entity's duties and responsibilities.

(2) Social Security numbers disclosed pursuant to a court order, warrant, or subpoena, or in response to a facially valid discovery request pursuant to rules applicable to a court or administrative body that has jurisdiction over the disclosing entity.

(3) Social Security numbers disclosed for public health purposes pursuant to and in compliance with requirements of the department of health under Title 18.

(4) The collection, use, or release of a Social Security number reasonably necessary for administrative purposes or internal verification. Internal verification includes the sharing of information for internal verification between and among governmental entities and their agents, employees, contractors, grantees, and grantors.

(5) Social Security numbers that have been redacted.

(6)(A) A state agency or state political subdivision that has used, prior to January 1, 2007, an individual's Social Security number in a manner inconsistent with subsection (d) of this section, which may continue using that individual's Social Security number in that manner on or after January 1, 2007, if all of the following conditions are met:

(i) The use of the Social Security number is continuous. If the use is stopped for any reason, subsection (d) of this section shall apply.

(ii) The individual is provided an annual disclosure that informs the individual that he or she has the right to stop the use of his or her Social Security number in a manner prohibited by subsection (d) of this section.

(iii) A written request by an individual to stop the use of his or her Social Security number in a manner prohibited by subsection (d) of this section is implemented within 30 days of the receipt of the request. There shall not be a fee or charge for implementing the request.

(iv) The state agency or state political subdivision does not deny services to an individual because the individual makes a written request pursuant to this subdivision.

(B) Nothing in this subdivision (e)(6) is intended to apply to the collection, use or dissemination of Social Security numbers collected prior to January 1, 2007 and exempted from the provisions of subsection (d) of this section pursuant to subdivisions (1) through (5) or (7) through (11) of this subsection.

(7) Certified copies of vital records issued by the health department and other authorized officials pursuant to part 6 of Title 18.

(8) A recorded document in the official records of the town clerk or municipality.

(9) A document filed in the official records of the courts.

(10) The collection, use, or dissemination of Social Security numbers by law enforcement agencies and the department of public safety in the execution of their duties and responsibilities.

(11) The collection, use, or release of a Social Security number to investigate or prevent fraud; conduct background checks; conduct social or scientific research; collect a debt; obtain a credit report from or furnish data to a consumer reporting agency pursuant to the fair credit reporting act, 15 U.S.C. § 1681 et seq.; undertake a permissible purpose enumerated under Gramm Leach Bliley, 12 C.F.R. § 216.13-15; or locate an individual who is missing, is a lost relative, or is due a benefit, such as a pension, insurance, or unclaimed property benefit.

(f) Any person has the right to request that a town clerk or clerk of court remove from an image or copy of an official record placed on a town's or court's internet website available to the general public or an internet website available to the general public to display public records by the town clerk or clerk of court, the person's Social Security number, employer taxpayer identification number, driver's license number, state identification number, passport number, checking account number, savings account number, credit card or debit card number, or personal identification number (PIN) code or passwords contained in that official record. A town clerk or clerk of court is authorized to redact the personal information identified in a request submitted under this section. The request must be made in writing, legibly signed by the requester, and delivered by mail, facsimile, or electronic transmission, or delivered in person to the town clerk or clerk of court. The request must speci

fy the personal information to be redacted, information that identifies the document that contains the personal information and unique information that identifies the location within the document that contains the Social Security number, employer taxpayer identification number, driver's license number, state identification number, passport number, checking account number, savings account number, credit card number, or debit card number, or personal identification number (PIN) code or passwords to be redacted. The request for redaction shall be considered a public record with access restricted to the town clerk, the clerk of court, their staff, or upon order of the court. The town clerk or clerk of court shall have no duty to inquire beyond the written request to verify the identity of a person requesting redaction and shall have no duty to remove redaction for any reason upon subsequent request by an individual or by order of the court, if impossible to do so. No fee will be charged fo

r the redaction pursuant to such request. Any person who requests a redaction without proper authority to do so shall be guilty of an infraction, punishable by a fine not to exceed $500.00 for each violation.

(g) Enforcement.

(1) With respect to businesses, the state, state agencies, political subdivisions of the state, and agents or employees of the state, a state agency, or a political subdivision of the state, subject to this subchapter, other than a person or entity licensed or registered with the department of banking, insurance, securities, and health care administration under Title 8 or this title, the attorney general and state's attorney shall have sole and full authority to investigate potential violations of this subchapter, to enforce, prosecute, obtain, and impose remedies for a violation of this subchapter, or any rules made pursuant to this subchapter, and to adopt rules under this subchapter, as the attorney general and state's attorney have under chapter 63 of this title. The attorney general may refer the matter to the state's attorney in an appropriate case. The superior courts shall have jurisdiction over any enforcement matter brought by the attorney general or a state's attorn

ey under this subsection.

(2) With respect to a person or entity licensed or registered with the department of banking, insurance, securities, and health care administration under Title 8 or this title, the department shall have full authority to investigate potential violations of this subchapter, and to prosecute, obtain and impose remedies for a violation of this subchapter or any rules adopted pursuant to this subchapter as the department has under Title 8 or this title, or any other applicable law or regulation.

(3) With respect to the information provided by the Vermont department of public safety and law enforcement agencies, and any agent or employee thereof, to the Vermont attorney general or state's attorney pursuant to subdivision (1) of this subsection, the information provided or made available by the agency or department to the attorney general may be designated by the agency or department as confidential, and shall not be released under the provisions of 1 V.S.A. § 317.
Vt. Stat. Ann. tit. 9, § 2440. Social security number protection.
(a) This section shall be known as the Social Security Number Protection Act.

(b) Except as provided in subsection (c) of this section, a business may not do any of the following:

(1) Intentionally communicate or otherwise make available to the general public an individual's Social Security number.

(2) Intentionally print or imbed an individual's Social Security number on any card required for the individual to access products or services provided by the person or entity.

(3) Require an individual to transmit his or her Social Security number over the internet unless the connection is secure or the Social Security number is encrypted.

(4) Require an individual to use his or her Social Security number to access an internet website, unless a password or unique personal identification number or other authentication device is also required to access the internet website.

(5) Print an individual's Social Security number on any materials that are mailed to the individual, unless state or federal law requires the Social Security number to be on the document to be mailed.

(6) Sell, lease, lend, trade, rent, or otherwise intentionally disclose an individual's Social Security number to a third party without written consent to the disclosure from the individual, when the party making the disclosure knows or in the exercise of reasonable diligence would have reason to believe that the third party lacks a legitimate purpose for obtaining the individual's Social Security number.

(c) Subsection (b) of this section shall not apply:

(1) When a Social Security number is included in an application or in documents related to an enrollment process, or to establish, amend, or terminate an account, contract, or policy; or to confirm the accuracy of the Social Security number for the purpose of obtaining a credit report pursuant to 15 U.S.C. § 1681(b)(2). A Social Security number that is permitted to be mailed under this section may not be printed, in whole or in part, on a postcard or other mailer not requiring an envelope, or visible on an envelope without the envelope having been opened.

(2) To the collection, use, or release of a Social Security number reasonably necessary for administrative purposes or internal verification.

(3) To the opening of an account or the provision of or payment for a product or service authorized by an individual.

(4) To the collection, use, or release of a Social Security number to investigate or prevent fraud; conduct background checks; conduct social or scientific research; collect a debt; obtain a credit report from or furnish data to a consumer reporting agency pursuant to the fair credit reporting act, 15 U.S.C. § 1681, et seq.; undertake a permissible purpose enumerated under Gramm Leach Bliley, 12 C.F.R. § 216.13-15; or locate an individual who is missing, is a lost relative, or is due a benefit, such as a pension, insurance, or unclaimed property benefit.

(5) To a business acting pursuant to a court order, warrant, subpoena, or when otherwise required by law, or in response to a facially valid discovery request pursuant to rules applicable to a court or administrative body that has jurisdiction over the disclosing entity.

(6) To a business providing the Social Security number to a federal, state, or local government entity, including a law enforcement agency, the department of public safety, and a court, or their agents or assigns.

(7) To a Social Security number that has been redacted.

(8)(A) To a business that has used, prior to January 1, 2007, an individual's Social Security number in a manner inconsistent with subsection (b) of this section, which may continue using that individual's Social Security number in that manner on or after January 1, 2007, if all of the following conditions are met:

(i) The use of the Social Security number is continuous. If the use is stopped for any reason, subsection (b) of this section shall apply.

(ii) The individual is provided an annual disclosure that informs the individual that he or she has the right to stop the use of his or her Social Security number in a manner prohibited by subsection (b) of this section.

(iii) A written request by an individual to stop the use of his or her Social Security number in a manner prohibited by subsection (b) of this section is implemented within 30 days of the receipt of the request. There shall not be a fee or charge for implementing the request.

(iv) The person or entity does not deny services to an individual because the individual makes a written request pursuant to this subsection.

(B) Nothing in this subdivision (8) is intended to apply to the collection, use or dissemination of Social Security numbers collected prior to January 1, 2007 and exempted from the provisions of subsection (b) of this section pursuant to subdivisions (1) through (7) or (9) and (10) of this subsection.

(9) To information obtained from a recorded document in the official records of the town clerk or municipality.

(10) To information obtained from a document filed in the official records of the courts.

(d) Except as provided in subsection (e) of this section, the state and any state agency, political subdivision of the state, and agent or employee of the state, a state agency, or a political subdivision of the state, may not do any of the following:

(1) Collect a Social Security number from an individual unless authorized or required by law, state or federal regulation, or grant agreement to do so or unless the collection of the Social Security number or records containing the Social Security number is related to the performance of that agency's duties and responsibilities as prescribed by law.

(2) Fail, when collecting a Social Security number from an individual in a hard copy format, to segregate that number on a separate page from the rest of the record, or as otherwise appropriate, in order that the Social Security number can be more easily redacted pursuant to a valid public records request.

(3) Fail, when collecting a Social Security number from an individual, to provide, at the time of or prior to the actual collection of the Social Security number by that agency, that individual, upon request, with a statement of the purpose or purposes for which the Social Security number is being collected and used.

(4) Use the Social Security number for any purpose other than the purpose set forth in the statement required under subdivision (3) of this subsection.

(5) Intentionally communicate or otherwise make available to the general public a person's Social Security number.

(6) Intentionally print or imbed an individual's Social Security number on any card required for the individual to access government services.

(7) Require an individual to transmit the individual's Social Security number over the internet, unless the connection is secure or the Social Security number is encrypted.

(8) Require an individual to use the individual's Social Security number to access an internet website, unless a password or unique personal identification number or other authentication device is also required to access the internet website.

(9) Print an individual's Social Security number on any materials that are mailed to the individual, unless a state or federal law, regulation, or grant agreement requires that the Social Security number be on the document to be mailed. A Social Security number that is permitted to be mailed under this subdivision may not be printed, in whole or in part, on a postcard or other mailer not requiring an envelope, or visible on an envelope, without the envelope having been opened.

(e) Subsection (d) of this section does not apply to:

(1) Social Security numbers disclosed to another governmental entity or its agents, employees, contractors, grantees, or grantors of a governmental entity if disclosure is necessary for the receiving entity to perform its duties and responsibilities. The receiving governmental entity and its agents, employees, and contractors shall maintain the confidential and exempt status of such numbers. As used in this subsection, "necessary" means reasonably needed to promote the efficient, accurate, or economical conduct of an entity's duties and responsibilities.

(2) Social Security numbers disclosed pursuant to a court order, warrant, or subpoena, or in response to a facially valid discovery request pursuant to rules applicable to a court or administrative body that has jurisdiction over the disclosing entity.

(3) Social Security numbers disclosed for public health purposes pursuant to and in compliance with requirements of the department of health under Title 18.

(4) The collection, use, or release of a Social Security number reasonably necessary for administrative purposes or internal verification. Internal verification includes the sharing of information for internal verification between and among governmental entities and their agents, employees, contractors, grantees, and grantors.

(5) Social Security numbers that have been redacted.

(6)(A) A state agency or state political subdivision that has used, prior to January 1, 2007, an individual's Social Security number in a manner inconsistent with subsection (d) of this section, which may continue using that individual's Social Security number in that manner on or after January 1, 2007, if all of the following conditions are met:

(i) The use of the Social Security number is continuous. If the use is stopped for any reason, subsection (d) of this section shall apply.

(ii) The individual is provided an annual disclosure that informs the individual that he or she has the right to stop the use of his or her Social Security number in a manner prohibited by subsection (d) of this section.

(iii) A written request by an individual to stop the use of his or her Social Security number in a manner prohibited by subsection (d) of this section is implemented within 30 days of the receipt of the request. There shall not be a fee or charge for implementing the request.

(iv) The state agency or state political subdivision does not deny services to an individual because the individual makes a written request pursuant to this subdivision.

(B) Nothing in this subdivision (e)(6) is intended to apply to the collection, use or dissemination of Social Security numbers collected prior to January 1, 2007 and exempted from the provisions of subsection (d) of this section pursuant to subdivisions (1) through (5) or (7) through (11) of this subsection.

(7) Certified copies of vital records issued by the health department and other authorized officials pursuant to part 6 of Title 18.

(8) A recorded document in the official records of the town clerk or municipality.

(9) A document filed in the official records of the courts.

(10) The collection, use, or dissemination of Social Security numbers by law enforcement agencies and the department of public safety in the execution of their duties and responsibilities.

(11) The collection, use, or release of a Social Security number to investigate or prevent fraud; conduct background checks; conduct social or scientific research; collect a debt; obtain a credit report from or furnish data to a consumer reporting agency pursuant to the fair credit reporting act, 15 U.S.C. § 1681 et seq.; undertake a permissible purpose enumerated under Gramm Leach Bliley, 12 C.F.R. § 216.13-15; or locate an individual who is missing, is a lost relative, or is due a benefit, such as a pension, insurance, or unclaimed property benefit.

(f) Any person has the right to request that a town clerk or clerk of court remove from an image or copy of an official record placed on a town's or court's internet website available to the general public or an internet website available to the general public to display public records by the town clerk or clerk of court, the person's Social Security number, employer taxpayer identification number, driver's license number, state identification number, passport number, checking account number, savings account number, credit card or debit card number, or personal identification number (PIN) code or passwords contained in that official record. A town clerk or clerk of court is authorized to redact the personal information identified in a request submitted under this section. The request must be made in writing, legibly signed by the requester, and delivered by mail, facsimile, or electronic transmission, or delivered in person to the town clerk or clerk of court. The request must speci

fy the personal information to be redacted, information that identifies the document that contains the personal information and unique information that identifies the location within the document that contains the Social Security number, employer taxpayer identification number, driver's license number, state identification number, passport number, checking account number, savings account number, credit card number, or debit card number, or personal identification number (PIN) code or passwords to be redacted. The request for redaction shall be considered a public record with access restricted to the town clerk, the clerk of court, their staff, or upon order of the court. The town clerk or clerk of court shall have no duty to inquire beyond the written request to verify the identity of a person requesting redaction and shall have no duty to remove redaction for any reason upon subsequent request by an individual or by order of the court, if impossible to do so. No fee will be charged fo

r the redaction pursuant to such request. Any person who requests a redaction without proper authority to do so shall be guilty of an infraction, punishable by a fine not to exceed $500.00 for each violation.

(g) Enforcement.

(1) With respect to businesses, the state, state agencies, political subdivisions of the state, and agents or employees of the state, a state agency, or a political subdivision of the state, subject to this subchapter, other than a person or entity licensed or registered with the department of banking, insurance, securities, and health care administration under Title 8 or this title, the attorney general and state's attorney shall have sole and full authority to investigate potential violations of this subchapter, to enforce, prosecute, obtain, and impose remedies for a violation of this subchapter, or any rules made pursuant to this subchapter, and to adopt rules under this subchapter, as the attorney general and state's attorney have under chapter 63 of this title. The attorney general may refer the matter to the state's attorney in an appropriate case. The superior courts shall have jurisdiction over any enforcement matter brought by the attorney general or a state's attorn

ey under this subsection.

(2) With respect to a person or entity licensed or registered with the department of banking, insurance, securities, and health care administration under Title 8 or this title, the department shall have full authority to investigate potential violations of this subchapter, and to prosecute, obtain and impose remedies for a violation of this subchapter or any rules adopted pursuant to this subchapter as the department has under Title 8 or this title, or any other applicable law or regulation.

(3) With respect to the information provided by the Vermont department of public safety and law enforcement agencies, and any agent or employee thereof, to the Vermont attorney general or state's attorney pursuant to subdivision (1) of this subsection, the information provided or made available by the agency or department to the attorney general may be designated by the agency or department as confidential, and shall not be released under the provisions of 1 V.S.A. § 317.

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Vt. Stat. Ann. tit. 9, § 2445. Safe destruction of documents containing personal information.

(1) "Business" means sole proprietorship, partnership, corporation, association, limited liability company, or other group, however organized and whether or not organized to operate at a profit, including a financial institution organized, chartered, or holding a license or authorization certificate under the laws of this state, any other state, the United States, or any other country, or the parent, affiliate, or subsidiary of a financial institution, but in no case shall it include the state, a state agency, or any political subdivision of the state. The term includes an entity that destroys records.

(2) "Customer" means an individual who provides personal information to a business for the purpose of purchasing or leasing a product or obtaining a service from the business.

(3) "Personal information" means the following information that identifies, relates to, describes, or is capable of being associated with a particular individual: his or her signature, Social Security number, physical characteristics or description, passport number, driver's license or state identification card number, insurance policy number, bank account number, credit card number, debit card number, or any other financial information.

(4)(A) "Record" means any material, regardless of the physical form, on which information is recorded or preserved by any means, including in written or spoken words, graphically depicted, printed, or electromagnetically transmitted.

(B) "Record" does not include publicly available directories containing information an individual has voluntarily consented to have publicly disseminated or listed, such as name, address, or telephone number.

(b) A business shall take all reasonable steps to destroy or arrange for the destruction of a customer's records within its custody or control containing personal information which is no longer to be retained by the business by shredding, erasing, or otherwise modifying the personal information in those records to make it unreadable or indecipherable through any means for the purpose of:

(1) ensuring the security and confidentiality of customer personal information;

(2) protecting against any anticipated threats or hazards to the security or integrity of customer personal information; and

(3) protecting against unauthorized access to or use of customer personal information that could result in substantial harm or inconvenience to any customer.

(c) An entity that is in the business of disposing of personal financial information that conducts business in Vermont or disposes of personal information of residents of Vermont must take all reasonable measures to dispose of records containing personal information by implementing and monitoring compliance with policies and procedures that protect against unauthorized access to or use of personal information during or after the collection and transportation and disposing of such information.

(d) This section does not apply to any of the following:

(1) Any bank, credit union, or financial institution as defined under the federal Gramm Leach Bliley law that is subject to the regulation of the Office of the Comptroller of the Currency, the Federal Reserve, the National Credit Union Administration, the Securities and Exchange Commission, the Federal Deposit Insurance Corporation, the Office of Thrift Supervision of the U.S. department of the treasury, or the department of banking, insurance, securities, and health care administration and is subject to the privacy and security provisions of the Gramm Leach Bliley Act, 15 U.S.C. § 6801 et seq.

(2) Any health insurer or health care facility that is subject to and in compliance with the standards for privacy of individually identifiable health information and the security standards for the protection of electronic health information of the Health Insurance Portability and Accountability Act of 1996.

(3) Any consumer reporting agency that is subject to and in compliance with the Federal Credit Reporting Act, 15 U.S.C. § 1681 et seq., as amended.

(e) Enforcement.

(1) With respect to all businesses subject to this section, other than a person or entity licensed or registered with the department of banking, insurance, securities and health care administration under Title 8 or this title, the attorney general and state's attorney shall have sole and full authority to investigate potential violations of this section, and to prosecute, obtain and impose remedies for a violation of this section, or any rules adopted pursuant to this section, and to adopt rules under this act, as the attorney general and state's attorney have under chapter 63 of this title. The superior courts shall have jurisdiction over any enforcement matter brought by the attorney general or a state's attorney under this subsection.

(2) With respect to a person or entity licensed or registered with the department of banking, insurance, securities, and health care administration under Title 8 or this title to do business in this state, the department of banking, insurance, securities, and health care administration shall have full authority to investigate potential violations of this act, and to prosecute, obtain, and impose remedies for a violation of this act, or any rules or regulations made pursuant to this act, as the department has under Title 8 and this title, or any other applicable law or regulation.
Vt. Stat. Ann. tit. 9, § 2445. Safe destruction of documents containing personal information.

(1) "Business" means sole proprietorship, partnership, corporation, association, limited liability company, or other group, however organized and whether or not organized to operate at a profit, including a financial institution organized, chartered, or holding a license or authorization certificate under the laws of this state, any other state, the United States, or any other country, or the parent, affiliate, or subsidiary of a financial institution, but in no case shall it include the state, a state agency, or any political subdivision of the state. The term includes an entity that destroys records.

(2) "Customer" means an individual who provides personal information to a business for the purpose of purchasing or leasing a product or obtaining a service from the business.

(3) "Personal information" means the following information that identifies, relates to, describes, or is capable of being associated with a particular individual: his or her signature, Social Security number, physical characteristics or description, passport number, driver's license or state identification card number, insurance policy number, bank account number, credit card number, debit card number, or any other financial information.

(4)(A) "Record" means any material, regardless of the physical form, on which information is recorded or preserved by any means, including in written or spoken words, graphically depicted, printed, or electromagnetically transmitted.

(B) "Record" does not include publicly available directories containing information an individual has voluntarily consented to have publicly disseminated or listed, such as name, address, or telephone number.

(b) A business shall take all reasonable steps to destroy or arrange for the destruction of a customer's records within its custody or control containing personal information which is no longer to be retained by the business by shredding, erasing, or otherwise modifying the personal information in those records to make it unreadable or indecipherable through any means for the purpose of:

(1) ensuring the security and confidentiality of customer personal information;

(2) protecting against any anticipated threats or hazards to the security or integrity of customer personal information; and

(3) protecting against unauthorized access to or use of customer personal information that could result in substantial harm or inconvenience to any customer.

(c) An entity that is in the business of disposing of personal financial information that conducts business in Vermont or disposes of personal information of residents of Vermont must take all reasonable measures to dispose of records containing personal information by implementing and monitoring compliance with policies and procedures that protect against unauthorized access to or use of personal information during or after the collection and transportation and disposing of such information.

(d) This section does not apply to any of the following:

(1) Any bank, credit union, or financial institution as defined under the federal Gramm Leach Bliley law that is subject to the regulation of the Office of the Comptroller of the Currency, the Federal Reserve, the National Credit Union Administration, the Securities and Exchange Commission, the Federal Deposit Insurance Corporation, the Office of Thrift Supervision of the U.S. department of the treasury, or the department of banking, insurance, securities, and health care administration and is subject to the privacy and security provisions of the Gramm Leach Bliley Act, 15 U.S.C. § 6801 et seq.

(2) Any health insurer or health care facility that is subject to and in compliance with the standards for privacy of individually identifiable health information and the security standards for the protection of electronic health information of the Health Insurance Portability and Accountability Act of 1996.

(3) Any consumer reporting agency that is subject to and in compliance with the Federal Credit Reporting Act, 15 U.S.C. § 1681 et seq., as amended.

(e) Enforcement.

(1) With respect to all businesses subject to this section, other than a person or entity licensed or registered with the department of banking, insurance, securities and health care administration under Title 8 or this title, the attorney general and state's attorney shall have sole and full authority to investigate potential violations of this section, and to prosecute, obtain and impose remedies for a violation of this section, or any rules adopted pursuant to this section, and to adopt rules under this act, as the attorney general and state's attorney have under chapter 63 of this title. The superior courts shall have jurisdiction over any enforcement matter brought by the attorney general or a state's attorney under this subsection.

(2) With respect to a person or entity licensed or registered with the department of banking, insurance, securities, and health care administration under Title 8 or this title to do business in this state, the department of banking, insurance, securities, and health care administration shall have full authority to investigate potential violations of this act, and to prosecute, obtain, and impose remedies for a violation of this act, or any rules or regulations made pursuant to this act, as the department has under Title 8 and this title, or any other applicable law or regulation.

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Vt. Stat. Ann. tit. 9, § 2451. Purpose.The purpose of this chapter is to complement the enforcement of federal statutes and decisions governing unfair methods of competition and unfair or deceptive acts or practices in order to protect the public, and to encourage fair and honest competition.Vt. Stat. Ann. tit. 9, § 2451. Purpose.The purpose of this chapter is to complement the enforcement of federal statutes and decisions governing unfair methods of competition and unfair or deceptive acts or practices in order to protect the public, and to encourage fair and honest competition.

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Vt. Stat. Ann. tit. 9, § 2451a. Definitions.For the purposes of this chapter:

(a) "Consumer" means any person who purchases, leases, contracts for, or otherwise agrees to pay consideration for goods or services not for resale in the ordinary course of his or her trade or business but for his or her use or benefit or the use or benefit of a member of his or her household, or in connection with the operation of his or her household or a farm whether or not the farm is conducted as a trade or business, or a person who purchases, leases, contracts for, or otherwise agrees to pay consideration for goods or services not for resale in the ordinary course of his or her trade or business but for the use or benefit of his or her business or in connection with the operation of his or her business.

(b) "Goods" or "services" shall include any objects, wares, goods, commodities, work, labor, intangibles, courses of instruction or training, securities, bonds, debentures, stocks, real estate, or other property or services of any kind. The term also includes bottled liquified petroleum (LP or propane) gas.

(c) "Seller" means a person regularly and principally engaged in a business of selling goods or services to consumers.

(d) "Home solicitation sale" means the sale or lease, or the offer for sale or lease, of goods or services with a purchase price of $5.00 or more, whether under single or multiple contracts, where the sale, lease, or offer thereof is either personally solicited or consummated by a seller at the residence or place of business or employment of the consumer, or at a seller's transient quarters, or solicited or consummated by a seller wholly or in part by telephone with a consumer at the residence or place of business or employment of the consumer. Transient quarters includes hotel or motel rooms, or any other place utilized as a temporary business location. The term "home solicitation sale" does not include a transaction:

(1) made pursuant to prior negotiations in the course of a visit by the consumer to a retail business establishment having a fixed permanent location where the goods are exhibited or the services are offered for sale on a continuing basis; or

(2) in which the consumer has initiated the contact and specifically requested the seller to visit his home for the purpose of repairing or performing maintenance upon the consumer's personal property. If in the course of such a visit, the seller sells the consumer the right to receive additional services or goods other than replacement parts necessarily used in performing the maintenance or in making the repairs, the sale of those additional goods or services would not fall within this exclusion;

(3) conducted and consummated entirely by mail; and without any other contact between the consumer and the seller prior to delivery of the goods or performance of the services;

(4) with a purchase price of under $25.00 where the consumer is not required to sign any contract, receipt, sales ticket, evidence of indebtedness or other writing; and the goods, services or merchandise purchased are capable of delivery or performance at one time;

(5) pertaining to the sale or rental of real property, to the sale of insurance, to the sale of securities by a broker dealer registered with the Securities and Exchange Commission or to the sale of commodities by and any person registered with the Commodity Futures Trading Commission;

(6) where, in the case of goods, the buyer may at any time:

(A)(i) cancel the order prior to delivery of the goods and receive a full refund for any monies paid; or

(ii) refuse to accept the goods when delivered, without incurring any obligation to pay for them and receive a full refund for any monies paid; or

(iii) return the goods to the seller and receive a full refund for any monies paid; and

(B) the buyer's right to cancel the order or return the goods without obligation or charge at any time and receive a full refund for any monies paid is clearly and unmistakably set forth on the face or reverse side of the sales ticket; and

(C) the goods or merchandise purchased under an agreement meeting the requirements specified in subdivisions (A) and (B) of this subdivision are capable of delivery at one time;

(7) solicited or consummated wholly or in part by telephone where the seller offers a full refund and right of cancellation for at least ten days after receipt of the goods or services, and a full refund within 30 days of return of the goods or cancellation of the services or under terms no more restrictive than those set forth in subsections 2454(a), (c) and (d) of this chapter, and the right of refund and cancellation is conspicuously disclosed with the goods or services;

(8) solicited or consummated wholly or in part by a federally-insured depository institution or its subsidiary, affiliate, or parent organizations, or by a public utility regulated by the Federal Communications Commission or the Vermont public service board;

(9) in response to an order placed by a farmer for farm-related goods or services, whether in person, by telephone, or otherwise, and the farmer has a preexisting open end credit plan with the seller.

(e) "Business day" means any calendar day except Saturday, Sunday, or any day classified as a holiday under V.S.A. § 371.

(f) "Purchase price" means the total price paid or to be paid for the consumer goods or services, including all interest and service charges.

(g) "Lessor" means a person engaged in a business of leasing goods to consumers.
Vt. Stat. Ann. tit. 9, § 2451a. Definitions.For the purposes of this chapter:

(a) "Consumer" means any person who purchases, leases, contracts for, or otherwise agrees to pay consideration for goods or services not for resale in the ordinary course of his or her trade or business but for his or her use or benefit or the use or benefit of a member of his or her household, or in connection with the operation of his or her household or a farm whether or not the farm is conducted as a trade or business, or a person who purchases, leases, contracts for, or otherwise agrees to pay consideration for goods or services not for resale in the ordinary course of his or her trade or business but for the use or benefit of his or her business or in connection with the operation of his or her business.

(b) "Goods" or "services" shall include any objects, wares, goods, commodities, work, labor, intangibles, courses of instruction or training, securities, bonds, debentures, stocks, real estate, or other property or services of any kind. The term also includes bottled liquified petroleum (LP or propane) gas.

(c) "Seller" means a person regularly and principally engaged in a business of selling goods or services to consumers.

(d) "Home solicitation sale" means the sale or lease, or the offer for sale or lease, of goods or services with a purchase price of $5.00 or more, whether under single or multiple contracts, where the sale, lease, or offer thereof is either personally solicited or consummated by a seller at the residence or place of business or employment of the consumer, or at a seller's transient quarters, or solicited or consummated by a seller wholly or in part by telephone with a consumer at the residence or place of business or employment of the consumer. Transient quarters includes hotel or motel rooms, or any other place utilized as a temporary business location. The term "home solicitation sale" does not include a transaction:

(1) made pursuant to prior negotiations in the course of a visit by the consumer to a retail business establishment having a fixed permanent location where the goods are exhibited or the services are offered for sale on a continuing basis; or

(2) in which the consumer has initiated the contact and specifically requested the seller to visit his home for the purpose of repairing or performing maintenance upon the consumer's personal property. If in the course of such a visit, the seller sells the consumer the right to receive additional services or goods other than replacement parts necessarily used in performing the maintenance or in making the repairs, the sale of those additional goods or services would not fall within this exclusion;

(3) conducted and consummated entirely by mail; and without any other contact between the consumer and the seller prior to delivery of the goods or performance of the services;

(4) with a purchase price of under $25.00 where the consumer is not required to sign any contract, receipt, sales ticket, evidence of indebtedness or other writing; and the goods, services or merchandise purchased are capable of delivery or performance at one time;

(5) pertaining to the sale or rental of real property, to the sale of insurance, to the sale of securities by a broker dealer registered with the Securities and Exchange Commission or to the sale of commodities by and any person registered with the Commodity Futures Trading Commission;

(6) where, in the case of goods, the buyer may at any time:

(A)(i) cancel the order prior to delivery of the goods and receive a full refund for any monies paid; or

(ii) refuse to accept the goods when delivered, without incurring any obligation to pay for them and receive a full refund for any monies paid; or

(iii) return the goods to the seller and receive a full refund for any monies paid; and

(B) the buyer's right to cancel the order or return the goods without obligation or charge at any time and receive a full refund for any monies paid is clearly and unmistakably set forth on the face or reverse side of the sales ticket; and

(C) the goods or merchandise purchased under an agreement meeting the requirements specified in subdivisions (A) and (B) of this subdivision are capable of delivery at one time;

(7) solicited or consummated wholly or in part by telephone where the seller offers a full refund and right of cancellation for at least ten days after receipt of the goods or services, and a full refund within 30 days of return of the goods or cancellation of the services or under terms no more restrictive than those set forth in subsections 2454(a), (c) and (d) of this chapter, and the right of refund and cancellation is conspicuously disclosed with the goods or services;

(8) solicited or consummated wholly or in part by a federally-insured depository institution or its subsidiary, affiliate, or parent organizations, or by a public utility regulated by the Federal Communications Commission or the Vermont public service board;

(9) in response to an order placed by a farmer for farm-related goods or services, whether in person, by telephone, or otherwise, and the farmer has a preexisting open end credit plan with the seller.

(e) "Business day" means any calendar day except Saturday, Sunday, or any day classified as a holiday under V.S.A. § 371.

(f) "Purchase price" means the total price paid or to be paid for the consumer goods or services, including all interest and service charges.

(g) "Lessor" means a person engaged in a business of leasing goods to consumers.

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Vt. Stat. Ann. tit. 9, § 2453. Practices prohibited; antitrust and consumer fraud.(a) Unfair methods of competition in commerce, and unfair or deceptive acts or practices in commerce, are hereby declared unlawful.

(b) It is the intent of the legislature that in construing subsection (a) of this section, the courts of this state will be guided by the construction of similar terms contained in Section 5(a)(1) of the Federal Trade Commission Act as from time to time amended by the Federal Trade Commission and the courts of the United States.

(c) The attorney general shall make rules and regulations, when necessary and proper to carry out the purposes of this chapter, relating to unfair methods of competition in commerce and unfair or deceptive acts or practices in commerce. The rules and regulations shall not be inconsistent with the rules, regulations and decisions of the Federal Trade Commission and the federal courts interpreting the Federal Trade Commission Act.

(d) Violation of a rule or regulation as made by the attorney general is prima facie proof of the commission of an unfair or deceptive act in commerce.

(e) The provisions of subsections (a), (c) and (d) of this section shall also be applicable to real estate transactions.
Vt. Stat. Ann. tit. 9, § 2453. Practices prohibited; antitrust and consumer fraud.(a) Unfair methods of competition in commerce, and unfair or deceptive acts or practices in commerce, are hereby declared unlawful.

(b) It is the intent of the legislature that in construing subsection (a) of this section, the courts of this state will be guided by the construction of similar terms contained in Section 5(a)(1) of the Federal Trade Commission Act as from time to time amended by the Federal Trade Commission and the courts of the United States.

(c) The attorney general shall make rules and regulations, when necessary and proper to carry out the purposes of this chapter, relating to unfair methods of competition in commerce and unfair or deceptive acts or practices in commerce. The rules and regulations shall not be inconsistent with the rules, regulations and decisions of the Federal Trade Commission and the federal courts interpreting the Federal Trade Commission Act.

(d) Violation of a rule or regulation as made by the attorney general is prima facie proof of the commission of an unfair or deceptive act in commerce.

(e) The provisions of subsections (a), (c) and (d) of this section shall also be applicable to real estate transactions.

.

Vt. Stat. Ann. tit. 9, § 2454. Purchase contracts; recission.(a) Consumer's or other obligor's right to cancel

(1) Except as provided in subdivision (5) of this subsection, in addition to any right otherwise to revoke an offer, the consumer or any other person obligated for any part of the purchase price may cancel a home solicitation sale until midnight of the third business day after the day on which the consumer has signed an agreement or offer to purchase relating to such sale, or has otherwise agreed to buy consumer goods or services from the seller.

(2) Cancellation occurs when notice of cancellation is given to the seller.

(3) Notice of cancellation, if given by mail, shall be deemed given when deposited in a mailbox properly addressed and postage prepaid.

(4) Notice of cancellation need not take the form prescribed and shall be sufficient if it indicates the intention of the consumer not to be bound.

(5) A home solicitation sale may not be cancelled if the consumer has requested the seller to provide goods or services without delay because of an emergency, and

(A) the seller in good faith has begun substantial performance of the contract before the notice of cancellation has been given, and

(B) in the case of goods, the goods cannot be returned to the seller in substantially the same condition as when received by the consumer, and

(C) the consumer's request is both handwritten and signed by the consumer.

(b) Disclosure obligations

(1) In every home solicitation sale, the seller shall furnish the consumer with a fully completed receipt or copy of any contract pertaining to such sale at the time the consumer signs an agreement or offer to purchase relating to such sale, or otherwise agrees to buy consumer goods or services from the seller. Such receipt or contract copy shall show the date of the transaction and shall contain the name and address of the seller, and in immediate proximity to the space reserved in the contract for the signature of the consumer or on the front page of the receipt if a contract is not used and in boldface type of a minimum size of ten points, a statement in substantially the following form:

You, the buyer, may cancel this transaction at any time prior to midnight of the third business day after the date of this transaction. See the attached notice of cancellation for an explanation of this right.

(2) In a home solicitation sale, unless a consumer requests the seller to provide goods or services without delay in an emergency, the seller shall furnish a notice of cancellation to the consumer at the time he signs an agreement or offer to purchase relating to such sale or otherwise agrees to buy consumer goods or services from the seller, which notice shall be attached to the contract or receipt and easily detachable.

(A) The notice of cancellation shall contain the following information and statements, printed in not less than ten point boldface type:

NOTICE OF CANCELLATION

(enter date of transaction)

.............................................................

(date)

You may cancel this transaction, without any penalty or obligation, within three business days from the above date.

If you cancel, any property traded in, any payments made by you under the contract or sale, and any negotiable instrument executed by you will be returned within ten business days following receipt by the seller of your cancellation notice, and any security interest arising out of the transaction will be canceled.

If you cancel, you must make available to the seller at your residence, in substantially as good condition as when received, any goods delivered to you under this contract or sale; or you may, if you wish, comply with the instructions of the seller regarding the return shipment of the goods at the seller's expense and risk.

If you do make the goods available to the seller and the seller does not pick them up within twenty days of the date of your notice of cancellation, you may retain or dispose of the goods without any further obligation. If you fail to make the goods available to the seller, or if you agree to return the goods to the seller and fail to do so, then you remain liable for performance of all obligations under the contract.

To cancel this transaction, mail or deliver a signed and dated copy of this cancellation notice or any other written notice, or send a telegram, to

............................................................ at ......................................................................................

(name of seller) (address of seller's place of business)

not later than midnight of .............................................................................................................

(date)

I hereby cancel this transaction.

.....................................

(date)

......................................................................

(buyer's signature)

(B) Before furnishing copies of the "Notice of Cancellation" to the buyer, the seller shall complete both copies by entering the name of the seller, the address of the seller's place of business, the date of the transaction, and the date, not earlier than the third business day following the date of the transaction, by which the buyer may give notice of cancellation.

(C) The seller shall leave the "Notice of Cancellation" with the consumer.

(D) In addition to the written notice of cancellation the seller shall orally inform the buyer of his right to cancel at the time of the transaction.

(3) Until the seller has complied with this subsection, the consumer or any other person obligated for any part of the purchase price may cancel the home solicitation sale by notifying the seller in any manner and by any means of his intention to cancel. The cancellation period of three business days shall begin to run from the time the seller complies with this subsection.

(c) Restoration of payments

(1) Within ten days after a home solicitation sale has been cancelled or an offer to purchase revoked, the seller shall tender to the consumer any payments made by the consumer and any note or other evidence of indebtedness, and take any action necessary or appropriate to terminate promptly any security interest in the transaction, except as provided in subdivision (3) of this subsection.

(2) If payment includes goods traded in, the goods shall be tendered in substantially as good condition as when received by the seller. If the seller fails to tender the goods as provided by this subsection, the consumer may elect to recover an amount equal to the trade-in allowance stated in the agreement.

(3) Until the seller has complied with this subsection the consumer may retain possession of goods delivered to him by the seller and shall have a lien on the goods in his possession or control for any recovery to which he may be entitled.

(d) Duties of seller and consumer

(1) Within ten days after a home solicitation sale has been cancelled or an offer to purchase revoked, the seller shall either demand possession of any goods delivered by the seller pursuant to the sale or instruct the consumer regarding the return shipment of the goods at the seller's expense and risk.

(2) If the seller does not give instructions regarding the return shipment of the goods, or if the consumer does not comply with any such instructions given, the seller must pick up such goods within twenty days after a home solicitation sale has been cancelled.

(3) If the seller does not act within the time periods established in subdivisions (1) and (2) of this subsection, the goods shall become the property of the consumer without obligation to pay for them.

(4) Upon demand, the consumer shall tender to the seller any goods delivered by the seller pursuant to the sale but need not tender at any place other than his residence.

(5) If the consumer agrees to return the goods to the seller and fails to do so, then he shall remain liable for performance of all obligations under the contract.

(6) The consumer shall take reasonable care of the goods in his possession both before cancellation or revocation and for a reasonable time thereafter, during which time the goods are otherwise at the seller's risk.

(7) If the seller has performed any services pursuant to a home solicitation sale prior to its cancellation, the seller shall be entitled to no compensation therefor.

(e) If the home solicitation sale is principally negotiated in a language other than English, then all of the disclosures required by this section shall be given in that language.

(f) If the consumer is unable to write in his own handwriting, then any of the statements required to be written by him under this section shall be handwritten by a member of the consumer's household at the request of the consumer. If there is no other member of the consumer's household, then such statements must be written by the seller, at the request of the consumer, and the effect of such statements shall be orally explained to the consumer by the seller.

(g) Use of the cancellation provision provided for in this section shall not prevent any other action being taken under this chapter or otherwise against such seller.

(h) A violation of any of the provisions of this section shall be considered an unfair act in commerce within the meaning of subsection 2453(a) of this title.
Vt. Stat. Ann. tit. 9, § 2454. Purchase contracts; recission.(a) Consumer's or other obligor's right to cancel

(1) Except as provided in subdivision (5) of this subsection, in addition to any right otherwise to revoke an offer, the consumer or any other person obligated for any part of the purchase price may cancel a home solicitation sale until midnight of the third business day after the day on which the consumer has signed an agreement or offer to purchase relating to such sale, or has otherwise agreed to buy consumer goods or services from the seller.

(2) Cancellation occurs when notice of cancellation is given to the seller.

(3) Notice of cancellation, if given by mail, shall be deemed given when deposited in a mailbox properly addressed and postage prepaid.

(4) Notice of cancellation need not take the form prescribed and shall be sufficient if it indicates the intention of the consumer not to be bound.

(5) A home solicitation sale may not be cancelled if the consumer has requested the seller to provide goods or services without delay because of an emergency, and

(A) the seller in good faith has begun substantial performance of the contract before the notice of cancellation has been given, and

(B) in the case of goods, the goods cannot be returned to the seller in substantially the same condition as when received by the consumer, and

(C) the consumer's request is both handwritten and signed by the consumer.

(b) Disclosure obligations

(1) In every home solicitation sale, the seller shall furnish the consumer with a fully completed receipt or copy of any contract pertaining to such sale at the time the consumer signs an agreement or offer to purchase relating to such sale, or otherwise agrees to buy consumer goods or services from the seller. Such receipt or contract copy shall show the date of the transaction and shall contain the name and address of the seller, and in immediate proximity to the space reserved in the contract for the signature of the consumer or on the front page of the receipt if a contract is not used and in boldface type of a minimum size of ten points, a statement in substantially the following form:

You, the buyer, may cancel this transaction at any time prior to midnight of the third business day after the date of this transaction. See the attached notice of cancellation for an explanation of this right.

(2) In a home solicitation sale, unless a consumer requests the seller to provide goods or services without delay in an emergency, the seller shall furnish a notice of cancellation to the consumer at the time he signs an agreement or offer to purchase relating to such sale or otherwise agrees to buy consumer goods or services from the seller, which notice shall be attached to the contract or receipt and easily detachable.

(A) The notice of cancellation shall contain the following information and statements, printed in not less than ten point boldface type:

NOTICE OF CANCELLATION

(enter date of transaction)

.............................................................

(date)

You may cancel this transaction, without any penalty or obligation, within three business days from the above date.

If you cancel, any property traded in, any payments made by you under the contract or sale, and any negotiable instrument executed by you will be returned within ten business days following receipt by the seller of your cancellation notice, and any security interest arising out of the transaction will be canceled.

If you cancel, you must make available to the seller at your residence, in substantially as good condition as when received, any goods delivered to you under this contract or sale; or you may, if you wish, comply with the instructions of the seller regarding the return shipment of the goods at the seller's expense and risk.

If you do make the goods available to the seller and the seller does not pick them up within twenty days of the date of your notice of cancellation, you may retain or dispose of the goods without any further obligation. If you fail to make the goods available to the seller, or if you agree to return the goods to the seller and fail to do so, then you remain liable for performance of all obligations under the contract.

To cancel this transaction, mail or deliver a signed and dated copy of this cancellation notice or any other written notice, or send a telegram, to

............................................................ at ......................................................................................

(name of seller) (address of seller's place of business)

not later than midnight of .............................................................................................................

(date)

I hereby cancel this transaction.

.....................................

(date)

......................................................................

(buyer's signature)

(B) Before furnishing copies of the "Notice of Cancellation" to the buyer, the seller shall complete both copies by entering the name of the seller, the address of the seller's place of business, the date of the transaction, and the date, not earlier than the third business day following the date of the transaction, by which the buyer may give notice of cancellation.

(C) The seller shall leave the "Notice of Cancellation" with the consumer.

(D) In addition to the written notice of cancellation the seller shall orally inform the buyer of his right to cancel at the time of the transaction.

(3) Until the seller has complied with this subsection, the consumer or any other person obligated for any part of the purchase price may cancel the home solicitation sale by notifying the seller in any manner and by any means of his intention to cancel. The cancellation period of three business days shall begin to run from the time the seller complies with this subsection.

(c) Restoration of payments

(1) Within ten days after a home solicitation sale has been cancelled or an offer to purchase revoked, the seller shall tender to the consumer any payments made by the consumer and any note or other evidence of indebtedness, and take any action necessary or appropriate to terminate promptly any security interest in the transaction, except as provided in subdivision (3) of this subsection.

(2) If payment includes goods traded in, the goods shall be tendered in substantially as good condition as when received by the seller. If the seller fails to tender the goods as provided by this subsection, the consumer may elect to recover an amount equal to the trade-in allowance stated in the agreement.

(3) Until the seller has complied with this subsection the consumer may retain possession of goods delivered to him by the seller and shall have a lien on the goods in his possession or control for any recovery to which he may be entitled.

(d) Duties of seller and consumer

(1) Within ten days after a home solicitation sale has been cancelled or an offer to purchase revoked, the seller shall either demand possession of any goods delivered by the seller pursuant to the sale or instruct the consumer regarding the return shipment of the goods at the seller's expense and risk.

(2) If the seller does not give instructions regarding the return shipment of the goods, or if the consumer does not comply with any such instructions given, the seller must pick up such goods within twenty days after a home solicitation sale has been cancelled.

(3) If the seller does not act within the time periods established in subdivisions (1) and (2) of this subsection, the goods shall become the property of the consumer without obligation to pay for them.

(4) Upon demand, the consumer shall tender to the seller any goods delivered by the seller pursuant to the sale but need not tender at any place other than his residence.

(5) If the consumer agrees to return the goods to the seller and fails to do so, then he shall remain liable for performance of all obligations under the contract.

(6) The consumer shall take reasonable care of the goods in his possession both before cancellation or revocation and for a reasonable time thereafter, during which time the goods are otherwise at the seller's risk.

(7) If the seller has performed any services pursuant to a home solicitation sale prior to its cancellation, the seller shall be entitled to no compensation therefor.

(e) If the home solicitation sale is principally negotiated in a language other than English, then all of the disclosures required by this section shall be given in that language.

(f) If the consumer is unable to write in his own handwriting, then any of the statements required to be written by him under this section shall be handwritten by a member of the consumer's household at the request of the consumer. If there is no other member of the consumer's household, then such statements must be written by the seller, at the request of the consumer, and the effect of such statements shall be orally explained to the consumer by the seller.

(g) Use of the cancellation provision provided for in this section shall not prevent any other action being taken under this chapter or otherwise against such seller.

(h) A violation of any of the provisions of this section shall be considered an unfair act in commerce within the meaning of subsection 2453(a) of this title.

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Vt. Stat. Ann. tit. 9, § 2461e. Requirements for guaranteed price plans and prepaid contracts
(a)(1) Contract and solicitation requirements. A contract for the retail sale of home heating oil, kerosene, or liquefied petroleum gas that offers a guaranteed price plan, including a fixed price contract, a prepaid contract, and any other similar terms, shall be in writing, and the terms and conditions of such price plans shall be disclosed. Such disclosure shall be in plain language and shall immediately follow the language concerning the price or service that could be affected and shall be printed in no less than 12-point boldface type of uniform font. A solicitation for the retail sale of home heating oil or liquefied petroleum gas that offers a guaranteed price plan that could become a contract upon a response from a consumer, including a fixed price contract, a prepaid contract, and any other similar terms, shall be in writing, and the terms and conditions of such offer shall be disclosed in plain language.

(2) Subdivision (1) of this subsection does not preclude a first come, first served offering.

(b)(1) Security for prepaid contracts. No home heating oil, kerosene, or liquefied petroleum gas dealer shall enter into a prepaid contract to provide home heating oil, kerosene, or liquefied petroleum gas to a consumer unless that dealer has, within seven days of the acceptance of the contract, obtained and maintained any one of the following:

(A) Futures contract. heating oil, kerosene, or liquefied petroleum gas contracts or other similar commitments that allow the dealer to purchase, at a fixed price, heating oil, kerosene, or liquefied petroleum gas in an amount not less than 75 percent of the maximum number of gallons that the dealer is committed to deliver pursuant to all prepaid contracts entered into by the dealer;

(B) Surety bond. a surety bond in an amount not less than 50 percent of the total amount of funds paid to the dealer by consumers pursuant to prepaid heating oil, kerosene, or liquefied petroleum gas contracts; or

(C) Line of credit, letter of credit, cash. a line of credit from an FDIC-insured institution, letter of credit from an FDIC-insured institution, cash in an FDIC-insured account or a functionally equivalent account, or combination thereof in an amount that represents 100 percent of the cost to the dealer of the maximum number of gallons that the dealer is committed to deliver pursuant to all prepaid contracts entered into by the dealer. The cost shall be calculated at the time the contracts are entered into.

(2) A dealer shall maintain the amount of futures contracts required by this subsection for the period of time for which the prepaid home heating oil, kerosene, or liquefied petroleum gas contracts are effective, except that the amount of the futures contracts may be reduced during such period of time to reflect any amount of home heating oil, kerosene, or liquefied petroleum gas already delivered to and paid for by the consumer.

(3) Subdivision (1) of this subsection shall not apply to budget plans under which consumers pay 1/12th of their yearly heating fuel cost each month.

(c)(1) Disclosure; additional contract requirements. A prepaid home heating oil, kerosene, or liquefied petroleum gas contract shall indicate:

(A) the amount of funds paid by the consumer to the dealer under the contract;

(B) the maximum number of gallons of home heating oil, kerosene, or liquefied petroleum gas committed by the dealer for delivery to the consumer pursuant to the contract; and

(C) that the performance of the prepaid contract is secured by one of the three options described in subsection (b) of this section.

(2) Reimbursement default provision. Any contract described in this subsection shall provide that the contract price of any undelivered home heating oil, kerosene, or liquefied petroleum gas owed to the consumer under the contract at the end date of the contract shall be reimbursed to the consumer not later than 30 days after the end date of the contract, unless the parties to the contract agree otherwise.

(d) Private right of action under consumer fraud act. In addition to the remedies set forth in sections 2458 and 2461 of this title, a home heating oil, kerosene, or liquefied petroleum gas dealer may bring an action against its heating oil, kerosene, or liquefied petroleum gas suppliers for failing to honor its contract with the home heating oil, kerosene, or liquefied petroleum gas dealer. The home heating oil, kerosene, or liquefied petroleum gas dealer bringing the action may recover all remedies available to consumers under subsection 2461(b) of this title.
Vt. Stat. Ann. tit. 9, § 2461e. Requirements for guaranteed price plans and prepaid contracts
(a)(1) Contract and solicitation requirements. A contract for the retail sale of home heating oil, kerosene, or liquefied petroleum gas that offers a guaranteed price plan, including a fixed price contract, a prepaid contract, and any other similar terms, shall be in writing, and the terms and conditions of such price plans shall be disclosed. Such disclosure shall be in plain language and shall immediately follow the language concerning the price or service that could be affected and shall be printed in no less than 12-point boldface type of uniform font. A solicitation for the retail sale of home heating oil or liquefied petroleum gas that offers a guaranteed price plan that could become a contract upon a response from a consumer, including a fixed price contract, a prepaid contract, and any other similar terms, shall be in writing, and the terms and conditions of such offer shall be disclosed in plain language.

(2) Subdivision (1) of this subsection does not preclude a first come, first served offering.

(b)(1) Security for prepaid contracts. No home heating oil, kerosene, or liquefied petroleum gas dealer shall enter into a prepaid contract to provide home heating oil, kerosene, or liquefied petroleum gas to a consumer unless that dealer has, within seven days of the acceptance of the contract, obtained and maintained any one of the following:

(A) Futures contract. heating oil, kerosene, or liquefied petroleum gas contracts or other similar commitments that allow the dealer to purchase, at a fixed price, heating oil, kerosene, or liquefied petroleum gas in an amount not less than 75 percent of the maximum number of gallons that the dealer is committed to deliver pursuant to all prepaid contracts entered into by the dealer;

(B) Surety bond. a surety bond in an amount not less than 50 percent of the total amount of funds paid to the dealer by consumers pursuant to prepaid heating oil, kerosene, or liquefied petroleum gas contracts; or

(C) Line of credit, letter of credit, cash. a line of credit from an FDIC-insured institution, letter of credit from an FDIC-insured institution, cash in an FDIC-insured account or a functionally equivalent account, or combination thereof in an amount that represents 100 percent of the cost to the dealer of the maximum number of gallons that the dealer is committed to deliver pursuant to all prepaid contracts entered into by the dealer. The cost shall be calculated at the time the contracts are entered into.

(2) A dealer shall maintain the amount of futures contracts required by this subsection for the period of time for which the prepaid home heating oil, kerosene, or liquefied petroleum gas contracts are effective, except that the amount of the futures contracts may be reduced during such period of time to reflect any amount of home heating oil, kerosene, or liquefied petroleum gas already delivered to and paid for by the consumer.

(3) Subdivision (1) of this subsection shall not apply to budget plans under which consumers pay 1/12th of their yearly heating fuel cost each month.

(c)(1) Disclosure; additional contract requirements. A prepaid home heating oil, kerosene, or liquefied petroleum gas contract shall indicate:

(A) the amount of funds paid by the consumer to the dealer under the contract;

(B) the maximum number of gallons of home heating oil, kerosene, or liquefied petroleum gas committed by the dealer for delivery to the consumer pursuant to the contract; and

(C) that the performance of the prepaid contract is secured by one of the three options described in subsection (b) of this section.

(2) Reimbursement default provision. Any contract described in this subsection shall provide that the contract price of any undelivered home heating oil, kerosene, or liquefied petroleum gas owed to the consumer under the contract at the end date of the contract shall be reimbursed to the consumer not later than 30 days after the end date of the contract, unless the parties to the contract agree otherwise.

(d) Private right of action under consumer fraud act. In addition to the remedies set forth in sections 2458 and 2461 of this title, a home heating oil, kerosene, or liquefied petroleum gas dealer may bring an action against its heating oil, kerosene, or liquefied petroleum gas suppliers for failing to honor its contract with the home heating oil, kerosene, or liquefied petroleum gas dealer. The home heating oil, kerosene, or liquefied petroleum gas dealer bringing the action may recover all remedies available to consumers under subsection 2461(b) of this title.

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Vt. Stat. Ann. tit. 9, § 2464. Telemarketing transactions.(a) For the purposes of this section:

(1) "Express oral authorization" means that a consumer has explicitly authorized an electronic funds transfer from his or her financial account for goods or services offered by a telemarketer:

(A) during a telephone call in which the telemarketer has clearly stated that the consumer is authorizing the transfer from his or her account, and has further stated the consumer's name, a description of the specific goods or services offered, any material terms of the transaction, the date on or after which the account will be debited, the amount of the transfer, a telephone number for consumer inquiries that is answered during normal business hours, and the date of the authorization; and

(B) where the telemarketer has either tape-recorded the entire telemarketing call on which the consumer has authorized the transaction and not disposed of the recording until at least four years after the authorization, or has provided written notice to the consumer, prior to the settlement date of the transfer, confirming the terms of the authorization as described in subdivision (A) of this subdivision (1) and has not disposed of the written notice until at least four years after the notice was created. Isolated and inadvertent failure to comply with this record-keeping requirement shall not give rise to liability under this subsection, provided that the telemarketer has in place reasonable procedures designed to comply with this requirement.

(2) "Financial account" means a checking, savings, share, or other depository account.

(3) "Process" includes printing a check, draft or other form of negotiable instrument drawn on or debited against a consumer's financial account, formatting or transferring data for use in connection with the debiting of a consumer's account by means of such an instrument or an electronic funds transfer, or arranging for such services to be provided to a telemarketer.

(4) "Telemarketer" means any person who initiates telephone calls to, or who receives telephone calls from, a consumer in connection with a plan, program, or campaign to market goods or services. The term "telemarketer" does not include:

(A) A federally-insured depository institution or its subsidiary when it obtains or submits for payment a check, draft, or other form of negotiable instrument drawn on or debited against a person's checking, savings, share, or other depository account at that institution.

(B) Any person that submits a payment when the consumer authorizing the submission has, prior to July 1, 1997, entered into a written contract with the person for the issuance of a charge or credit card.

(C) Any person who initiates telephone calls to or who receives telephone calls from a consumer in connection with collection of an amount due for goods or services previously provided to the consumer.

(D) Any company registered with and regulated by the public service board.

(E) Any other category of persons that the attorney general may exempt by rule consistent with the purposes of this section.

(b) It is an unfair and deceptive act and practice in commerce for any telemarketer directly or through an agent:

(1) to procure the services of any third-party delivery, courier, or other pickup service to obtain a consumer's payment for goods, unless the goods are delivered at the time that the consumer's payment is obtained by the courier; or

(2) to obtain or submit for payment a check, draft, or other form of negotiable instrument drawn on a person's financial account without the consumer's prior written authorization or to dispose of the written authorization until at least four years after the authorization.

(3) to obtain funds from a person's financial account by means of an electronic funds transfer unless:

(A)(i) the consumer has initiated the telephone call to the telemarketer; or

(ii) the telemarketer and the consumer have a current written agreement for the provision of goods or services or the consumer has purchased goods or services from the telemarketer within the previous two years; and

(B) the telemarketer has obtained the consumer's express oral authorization to the transfer prior to initiating the debit.

(c) It is an unfair and deceptive act and practice in commerce for a party other than a federally-insured depository institution to process for payment from a consumer's financial account, in connection with a telemarketer's transaction with the consumer:

(1) a check, draft, or other form of negotiable instrument drawn on or debited against such account without the consumer's prior written authorization; or

(2) an electronic funds transfer from such account for goods or services offered by a telemarketer, unless:

(A)(i) the consumer has initiated the telephone call to the telemarketer; or

(ii) the telemarketer and the consumer have a current written agreement for the provision of goods or services or the consumer has purchased goods or services from the telemarketer within the previous two years; and

(B) the telemarketer has obtained the consumer's express oral authorization to the transfer prior to initiating the debit.

(d) In addition to the legal liability described in subsection (c) of this section, it is an unfair and deceptive act and practice in commerce for any person, including a third-party delivery, courier or other pickup service, or the telemarketer's financial institution as defined in 8 V.S.A. § 10202(5), but not including the consumer's financial institution as defined in 8 V.S.A. § 10202(5), to provide substantial assistance to a telemarketer in violation of subsection (b) of this section when the person or the person's authorized agent knows or consciously avoids knowing that the telemarketer is engaging in an unfair or deceptive act or practice in commerce.

(e) It is an unfair and deceptive act and practice in commerce for a party other than a federally insured depository institution who processes a telemarketing transaction for payment from a consumer's financial account to:

(1) fail to obtain, before processing the transaction, any prior written authorization required by subdivision (b)(2) of this section or any tape recording or copy of a written confirmation required by subdivision (b)(3) of this section as part of the consumer's express oral authorization; or

(2) dispose of document required by subdivision (1) of this subsection, or of telemarketer applications or agreements, records of payments processed or returned, electronic communications relating to telemarketers, consumer complaints, or any other category of record that the attorney general may prescribe by rule, until at least four years after the records were created.
Vt. Stat. Ann. tit. 9, § 2464. Telemarketing transactions.(a) For the purposes of this section:

(1) "Express oral authorization" means that a consumer has explicitly authorized an electronic funds transfer from his or her financial account for goods or services offered by a telemarketer:

(A) during a telephone call in which the telemarketer has clearly stated that the consumer is authorizing the transfer from his or her account, and has further stated the consumer's name, a description of the specific goods or services offered, any material terms of the transaction, the date on or after which the account will be debited, the amount of the transfer, a telephone number for consumer inquiries that is answered during normal business hours, and the date of the authorization; and

(B) where the telemarketer has either tape-recorded the entire telemarketing call on which the consumer has authorized the transaction and not disposed of the recording until at least four years after the authorization, or has provided written notice to the consumer, prior to the settlement date of the transfer, confirming the terms of the authorization as described in subdivision (A) of this subdivision (1) and has not disposed of the written notice until at least four years after the notice was created. Isolated and inadvertent failure to comply with this record-keeping requirement shall not give rise to liability under this subsection, provided that the telemarketer has in place reasonable procedures designed to comply with this requirement.

(2) "Financial account" means a checking, savings, share, or other depository account.

(3) "Process" includes printing a check, draft or other form of negotiable instrument drawn on or debited against a consumer's financial account, formatting or transferring data for use in connection with the debiting of a consumer's account by means of such an instrument or an electronic funds transfer, or arranging for such services to be provided to a telemarketer.

(4) "Telemarketer" means any person who initiates telephone calls to, or who receives telephone calls from, a consumer in connection with a plan, program, or campaign to market goods or services. The term "telemarketer" does not include:

(A) A federally-insured depository institution or its subsidiary when it obtains or submits for payment a check, draft, or other form of negotiable instrument drawn on or debited against a person's checking, savings, share, or other depository account at that institution.

(B) Any person that submits a payment when the consumer authorizing the submission has, prior to July 1, 1997, entered into a written contract with the person for the issuance of a charge or credit card.

(C) Any person who initiates telephone calls to or who receives telephone calls from a consumer in connection with collection of an amount due for goods or services previously provided to the consumer.

(D) Any company registered with and regulated by the public service board.

(E) Any other category of persons that the attorney general may exempt by rule consistent with the purposes of this section.

(b) It is an unfair and deceptive act and practice in commerce for any telemarketer directly or through an agent:

(1) to procure the services of any third-party delivery, courier, or other pickup service to obtain a consumer's payment for goods, unless the goods are delivered at the time that the consumer's payment is obtained by the courier; or

(2) to obtain or submit for payment a check, draft, or other form of negotiable instrument drawn on a person's financial account without the consumer's prior written authorization or to dispose of the written authorization until at least four years after the authorization.

(3) to obtain funds from a person's financial account by means of an electronic funds transfer unless:

(A)(i) the consumer has initiated the telephone call to the telemarketer; or

(ii) the telemarketer and the consumer have a current written agreement for the provision of goods or services or the consumer has purchased goods or services from the telemarketer within the previous two years; and

(B) the telemarketer has obtained the consumer's express oral authorization to the transfer prior to initiating the debit.

(c) It is an unfair and deceptive act and practice in commerce for a party other than a federally-insured depository institution to process for payment from a consumer's financial account, in connection with a telemarketer's transaction with the consumer:

(1) a check, draft, or other form of negotiable instrument drawn on or debited against such account without the consumer's prior written authorization; or

(2) an electronic funds transfer from such account for goods or services offered by a telemarketer, unless:

(A)(i) the consumer has initiated the telephone call to the telemarketer; or

(ii) the telemarketer and the consumer have a current written agreement for the provision of goods or services or the consumer has purchased goods or services from the telemarketer within the previous two years; and

(B) the telemarketer has obtained the consumer's express oral authorization to the transfer prior to initiating the debit.

(d) In addition to the legal liability described in subsection (c) of this section, it is an unfair and deceptive act and practice in commerce for any person, including a third-party delivery, courier or other pickup service, or the telemarketer's financial institution as defined in 8 V.S.A. § 10202(5), but not including the consumer's financial institution as defined in 8 V.S.A. § 10202(5), to provide substantial assistance to a telemarketer in violation of subsection (b) of this section when the person or the person's authorized agent knows or consciously avoids knowing that the telemarketer is engaging in an unfair or deceptive act or practice in commerce.

(e) It is an unfair and deceptive act and practice in commerce for a party other than a federally insured depository institution who processes a telemarketing transaction for payment from a consumer's financial account to:

(1) fail to obtain, before processing the transaction, any prior written authorization required by subdivision (b)(2) of this section or any tape recording or copy of a written confirmation required by subdivision (b)(3) of this section as part of the consumer's express oral authorization; or

(2) dispose of document required by subdivision (1) of this subsection, or of telemarketer applications or agreements, records of payments processed or returned, electronic communications relating to telemarketers, consumer complaints, or any other category of record that the attorney general may prescribe by rule, until at least four years after the records were created.

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Vt. Stat. Ann. tit. 9, § 2464a. Prohibited telephone solicitations.(a) Definitions. As used in this section:

(1) "Customer" means a customer, residing or located in Vermont, of a company providing telecommunications service as defined in subdivision 203(5) of Title 30.

(2) "Federal functional regulator" means a federal functional regulator as defined in 15 U.S.C. § 6809(2).

(3) "Financial institution" means a financial institution as defined in 15 U.S.C. § 6809(3).

(4) "Tax-exempt organization" means an organization described in Section 501(c) of the Internal Revenue Service Code (26 U.S.C. § 501(c)).

(5) "Telemarketer" means any telephone solicitor. However, "telemarketer" does not include any telephone solicitor who is otherwise registered or licensed with, or regulated or chartered by, the secretary of state, the public service board, the department of banking, insurance, securities, and health care administration or the department of taxes, or is a financial institution subject to regulations adopted pursuant to 15 U.S.C. § 6804(a) by a federal functional regulator. Telephone solicitors registered with the department of taxes to collect Vermont income withholding, sales and use, or meals and rooms tax, but not registered with any other agency listed in this subdivision, shall provide to the secretary of state an address and agent for the purpose of submitting to the jurisdiction of the Vermont courts in any action brought for violations of this section.

(6) "Telephone solicitation":

(A) means the solicitation by telephone of a customer for the purpose of encouraging the customer to contribute to an organization which is not a tax-exempt organization, or to purchase, lease, or otherwise agree to pay consideration for money, goods or services; and

(B) does not include:

(i) telephone calls made in response to a request or inquiry by the called customer;

(ii) telephone calls made by or on behalf of a tax-exempt organization, an organization incorporated as a nonprofit organization with the state of Vermont, or an organization in the process of applying for tax-exempt status or nonprofit status;

(iii) telephone calls made by a person not regularly engaged in the activities listed in subdivision (A) of this subdivision (6); or

(iv) telephone calls made to a person with whom the telephone solicitor has an established business relationship.

(7) "Telephone solicitor" means any person placing telephone solicitations, or hiring others, on an hourly, commission, or independent contractor basis, to conduct telephone solicitations.

(b) Prohibition.

(1) No telemarketer shall make a telephone solicitation to a telephone number in Vermont without having first registered in accordance with section 2464b of this title.

(2) No person shall make any telephone call to a telephone number in Vermont which violates the Federal Trade Commission's do not call rule, 16 C.F.R. subdivision 310.4(b)(1)(iii), or the Federal Communication Commission's do not call rule, 47 C.F.R. subdivision 64.1200(c)(2) and subsection (d), as amended from time to time.

(c) Violation. A violation of this section shall constitute a violation of section 2453 of this title. Each prohibited telephone call shall constitute a separate violation. In considering a civil penalty for violations of subdivision (b)(2) of this section, the court may consider, among other relevant factors, the extent to which a telephone solicitor maintained and complied with procedures designed to ensure compliance with the rules of the Federal Communications Commission and the Federal Trade Commission.

(d) Criminal Penalties. A telemarketer who makes a telephone solicitation in violation of subdivision (b)(1) of this section shall be imprisoned for not more than 18 months or fined not more than $10,000.00, or both. It shall be an affirmative defense, for a telemarketer with five or fewer employees, that the telemarketer did not know, and did not consciously avoid knowing, that Vermont has a requirement of registration of telemarketers. Each telephone call shall constitute a separate solicitation under this section. This section shall not be construed to limit a person's liability under any other civil or criminal law.
Vt. Stat. Ann. tit. 9, § 2464a. Prohibited telephone solicitations.(a) Definitions. As used in this section:

(1) "Customer" means a customer, residing or located in Vermont, of a company providing telecommunications service as defined in subdivision 203(5) of Title 30.

(2) "Federal functional regulator" means a federal functional regulator as defined in 15 U.S.C. § 6809(2).

(3) "Financial institution" means a financial institution as defined in 15 U.S.C. § 6809(3).

(4) "Tax-exempt organization" means an organization described in Section 501(c) of the Internal Revenue Service Code (26 U.S.C. § 501(c)).

(5) "Telemarketer" means any telephone solicitor. However, "telemarketer" does not include any telephone solicitor who is otherwise registered or licensed with, or regulated or chartered by, the secretary of state, the public service board, the department of banking, insurance, securities, and health care administration or the department of taxes, or is a financial institution subject to regulations adopted pursuant to 15 U.S.C. § 6804(a) by a federal functional regulator. Telephone solicitors registered with the department of taxes to collect Vermont income withholding, sales and use, or meals and rooms tax, but not registered with any other agency listed in this subdivision, shall provide to the secretary of state an address and agent for the purpose of submitting to the jurisdiction of the Vermont courts in any action brought for violations of this section.

(6) "Telephone solicitation":

(A) means the solicitation by telephone of a customer for the purpose of encouraging the customer to contribute to an organization which is not a tax-exempt organization, or to purchase, lease, or otherwise agree to pay consideration for money, goods or services; and

(B) does not include:

(i) telephone calls made in response to a request or inquiry by the called customer;

(ii) telephone calls made by or on behalf of a tax-exempt organization, an organization incorporated as a nonprofit organization with the state of Vermont, or an organization in the process of applying for tax-exempt status or nonprofit status;

(iii) telephone calls made by a person not regularly engaged in the activities listed in subdivision (A) of this subdivision (6); or

(iv) telephone calls made to a person with whom the telephone solicitor has an established business relationship.

(7) "Telephone solicitor" means any person placing telephone solicitations, or hiring others, on an hourly, commission, or independent contractor basis, to conduct telephone solicitations.

(b) Prohibition.

(1) No telemarketer shall make a telephone solicitation to a telephone number in Vermont without having first registered in accordance with section 2464b of this title.

(2) No person shall make any telephone call to a telephone number in Vermont which violates the Federal Trade Commission's do not call rule, 16 C.F.R. subdivision 310.4(b)(1)(iii), or the Federal Communication Commission's do not call rule, 47 C.F.R. subdivision 64.1200(c)(2) and subsection (d), as amended from time to time.

(c) Violation. A violation of this section shall constitute a violation of section 2453 of this title. Each prohibited telephone call shall constitute a separate violation. In considering a civil penalty for violations of subdivision (b)(2) of this section, the court may consider, among other relevant factors, the extent to which a telephone solicitor maintained and complied with procedures designed to ensure compliance with the rules of the Federal Communications Commission and the Federal Trade Commission.

(d) Criminal Penalties. A telemarketer who makes a telephone solicitation in violation of subdivision (b)(1) of this section shall be imprisoned for not more than 18 months or fined not more than $10,000.00, or both. It shall be an affirmative defense, for a telemarketer with five or fewer employees, that the telemarketer did not know, and did not consciously avoid knowing, that Vermont has a requirement of registration of telemarketers. Each telephone call shall constitute a separate solicitation under this section. This section shall not be construed to limit a person's liability under any other civil or criminal law.

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Vt. Stat. Ann. tit. 9, § 2465b. Misrepresentation of a floral business as local.(a) In connection with the sale of floral products, it shall be an unlawful and deceptive act and practice in commerce in violation of section 2453 of this title for a floral business to misrepresent in an advertisement, on the Internet, on a website, or in a listing of the floral business in a telephone directory or other directory assistance database the geographic location of the floral business as "local," "locally owned," or physically located within Vermont.

(b) A floral business is considered to misrepresent its geographic location that it is "local," "locally owned," or located within Vermont in violation of subsection (a) of this section if the floral business is not physically located in Vermont and:

(1) the advertisement, Internet, web site, or directory listing would lead a reasonable consumer to conclude that the floral business is physically located in Vermont; or

(2) the advertisement, Internet, web site, or directory listing uses the name of a floral business that is physically located in Vermont, with geographic terms that would lead a reasonable consumer to understand the advertised floral business to be physically located in Vermont.

(c) A retail floral business physically located in Vermont shall be deemed a consumer for the purposes of enforcing this section under § 2461(b) of this chapter.

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Vt. Stat. Ann. tit. 9, § 2466. Goods and services appearing on telephone bill.(a) No seller shall bill a consumer for goods or services that will appear as a charge on the person's local telephone bill without the consumer's express authorization.

(b) No later than the tenth business day after a seller has entered into a contract or oher agreement with a consumer to sell or lease or otherwise provide for consideration goods or services that will appear as a chargeon the consumer's local telephone bill, the seller shall send, or cause to be sent, to the consumer, by first class mail, postage prepaid, a notice of the contract or agreement. (c) The notice shall clearly and conspicuously disclose: (1) The nature of the goods or services to be provided; (2) The cost of goods or servces; (3) Information on how the consumer may cancel the contract or agreement; (4) The consumer assistance address and telephone number specified by the attorney general; (5) That the charges for the goodsor services may appear on the consumer's local telephone bill; and (6) Such other information as the attorney general may prescribe by rule. (d) The notice shall be a separate document sent for the sole purpose of providing to the consumer the information required by subsection (c) of this section. The notice shall not be combined with any sweepstakes offeror other inducement to purchase goods or services. (e) The sending of the notice required by this section is not a defense to a claim that a consumer did not consent to enter into the contract or agreement. (f) No person shall arrange on behalf of a seller of goods or services, directly or through an intermediary, with a local exchange carrier, to bill a consumer for goods or services unless the seller complies with this section. This prohibition applies, but is not limited, to persons who aggregate consumer billings for a seller and to persons who serve as a clearinghouse for aggregated billings.

(g) Failure to comply with this section is an unfair and deceptive act and practice in commerce under this chapter.

(h) The attorney general may make rules and regulations to carry out the purposes of this section.

(i) Nothing in this section limits the liability of any person under existing statutory or common law.

(j) This section does not apply to sellers regulated by the Vermont public service board under Title 30, other than section 231a of Title 30. Nothing in this section affects any rule issued by the Vermont public service board.
Vt. Stat. Ann. tit. 9, § 2466. Goods and services appearing on telephone bill.(a) Except as provided in subsection (f) of this section, a seller shall not bill a consumer for goods or services that will appear as a charge on the person's bill for telephone service provided by any local exchange carrier.

(b) No person shall arrange on behalf of a seller of goods or services, directly or through an intermediary, with a local exchange carrier, to bill a consumer for goods or services other than as permitted by this section. This prohibition applies, but is not limited, to persons who aggregate consumer billings for a seller and to persons who serve as a clearinghouse for aggregated billings.

(c) Failure to comply with this section is an unfair and deceptive act and practice in commerce under this chapter.

(d) The attorney general may make rules and regulations to carry out the purposes of this section.

(e) Nothing in this section limits the liability of any person under existing statutory or common law.

(f)(1) This section shall apply to billing aggregators described in 30 V.S.A. § 231a, but shall not apply to:

(A) billing for goods or services marketed or sold by persons subject to the jurisdiction of the Vermont public service board under 30 V.S.A. § 203;

(B) billing for direct dial or dial around services initiated from the consumer's telephone; or

(C) operator-assisted telephone calls, collect calls, or telephone services provided to facilitate communication to or from correctional center inmates.

(2) Nothing in this section affects any rule issued by the Vermont public service board.

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Vt. Stat. Ann. tit. 9, § 2466a. Consumer protections; prescription drugs.(a) A violation of 18 V.S.A. § 4631 shall be considered a prohibited practice under section 2453 of this title.

(b) As provided in 18 V.S.A. § 9473,, a violation of 18 V.S.A. § 9472 shall be considered a prohibited practice under section 2453 of this title.

(c)(1) It shall be a prohibited practice under section 2453 of this title for a manufacturer of prescription drugs to present or cause to be presented in the state a regulated advertisement if that advertisement does not comply with the requirements concerning drugs and devices and prescription drug advertising in federal law and regulations under 21 United States Code, Sections 331 and 352(n) and 21 Code of Federal Regulations, Part 202.

(2) For purposes of this section:

(A) "Manufacturer of prescription drugs" means a person authorized by law to manufacture, bottle, or pack drugs or biological products, a licensee or affiliate of that person, or a labeler that receives drugs or biological products from a manufacturer or wholesaler and repackages them for later retail sale and has a labeler code from the federal Food and Drug Administration under 21 Code of Federal Regulations, 2027.20 (1999).

(B) "Regulated advertisement" means:

(i) the presentation to the general public of a commercial message regarding a prescription drug or biological product by a manufacturer of prescription drugs that is broadcast on television, cable, or radio from a station or cable company that is physically located in the state, broadcast over the Internet from a location in the state, or printed in magazines or newspapers that are printed, distributed, or sold in the state; or

(ii) a commercial message regarding a prescription drug or biological product by a manufacturer of prescription drugs or its representative that is conveyed:

(I) to the office of a health care professional doing business in Vermont, including statements by representatives or employees of the manufacturer and materials mailed or delivered to the office; or

(II) at a conference or other professional meeting occurring in Vermont.

(d) No person shall sell, offer for sale, or distribute electronic prescribing software that advertises, uses instant messaging and pop-up advertisements, or uses other means to influence or attempt to influence the prescribing decision of a health care professional through economic incentives or otherwise and which is triggered or in specific response to the input, selection, or act of a health care professional or agent in prescribing a specific prescription drug or directing a patient to a certain pharmacy. This subsection shall not apply to information provided to the health care professional about pharmacy reimbursement, prescription drug formulary compliance, and patient care management.
Vt. Stat. Ann. tit. 9, § 2466a. Consumer protections; prescription drugs.(a) A violation of 18 V.S.A. § 4631 shall be considered a prohibited practice under section 2453 of this title.

(b) As provided in 18 V.S.A. § 9473,, a violation of 18 V.S.A. § 9472 shall be considered a prohibited practice under section 2453 of this title.

(c)(1) It shall be a prohibited practice under section 2453 of this title for a manufacturer of prescription drugs to present or cause to be presented in the state a regulated advertisement if that advertisement does not comply with the requirements concerning drugs and devices and prescription drug advertising in federal law and regulations under 21 United States Code, Sections 331 and 352(n) and 21 Code of Federal Regulations, Part 202.

(2) For purposes of this section:

(A) "Manufacturer of prescription drugs" means a person authorized by law to manufacture, bottle, or pack drugs or biological products, a licensee or affiliate of that person, or a labeler that receives drugs or biological products from a manufacturer or wholesaler and repackages them for later retail sale and has a labeler code from the federal Food and Drug Administration under 21 Code of Federal Regulations, 2027.20 (1999).

(B) "Regulated advertisement" means:

(i) the presentation to the general public of a commercial message regarding a prescription drug or biological product by a manufacturer of prescription drugs that is broadcast on television, cable, or radio from a station or cable company that is physically located in the state, broadcast over the Internet from a location in the state, or printed in magazines or newspapers that are printed, distributed, or sold in the state; or

(ii) a commercial message regarding a prescription drug or biological product by a manufacturer of prescription drugs or its representative that is conveyed:

(I) to the office of a health care professional doing business in Vermont, including statements by representatives or employees of the manufacturer and materials mailed or delivered to the office; or

(II) at a conference or other professional meeting occurring in Vermont.

(d) No person shall sell, offer for sale, or distribute electronic prescribing software that advertises, uses instant messaging and pop-up advertisements, or uses other means to influence or attempt to influence the prescribing decision of a health care professional through economic incentives or otherwise and which is triggered or in specific response to the input, selection, or act of a health care professional or agent in prescribing a specific prescription drug or directing a patient to a certain pharmacy. This subsection shall not apply to information provided to the health care professional about pharmacy reimbursement, prescription drug formulary compliance, and patient care management.

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Vt. Stat. Ann. tit. 9, § 2467. Definitions.These definitions are for use in this subchapter only:

(1) "Assistive device" means an item, piece of equipment, or product system, whether acquired commercially off-the-shelf, modified, or customized, that is used or designed to be used to increase, maintain, or improve any functional capability of an individual with disabilities. An assistive device system, that as a whole is within the definition of this term, is itself an assistive device, and, in such cases, this term also applies to each component product of the assistive device system that is itself ordinarily an assistive device. For this section only and no other purposes, this term is limited to:

(A) wheelchairs and scooters of any kind, including all their assistive devices and components that enhance the mobility or positioning of an individual, such as motorization, motorized positioning features, and the switches and controls for any motorized features; and

(B) computer equipment with voice output, artificial larynges, voice amplification devices, and other alternative and augmentative communication devices or any devices used for the purpose of communication.

(2) "Assistive device dealer" means a person who is in the business of selling assistive devices to consumers.

(3) "Assistive device lessor" means a person who leases an assistive device to a consumer, or who holds the lessor's rights, under a written lease.

(4) "Collateral costs" means expenses incurred by a consumer in connection with the repair of a nonconformity, including the costs of obtaining an alternative assistive device.

(5) "Consumer" means any of the following:

(A) the purchaser of an assistive device, if the assistive device was purchased from an assistive device dealer or manufacturer for purposes other than resale;

(B) a person to whom the assistive device is transferred for purposes other than resale, if the transfer occurs before the expiration of an express warranty applicable to the assistive device;

(C) a person who may enforce the warranty; and

(D) a person who leases an assistive device from an assistive device lessor under a written lease.

(6) "Demonstrator" means an assistive device used primarily for the purpose of demonstration and tryout to the public.

(7) "Early termination cost" means any expense or obligation that an assistive device lessor incurs as a result of both the termination of a written lease before the termination date set forth in that lease and the return of an assistive device to a manufacturer pursuant to this section. Early termination cost includes a penalty for prepayment under a finance arrangement.

(8) "Early termination saving" means any expense or obligation that an assistive device lessor avoids as a result of both the termination of a written lease before that termination date set forth in that lease and the return of an assistive device to a manufacturer pursuant to this section. Early termination saving includes an interest charge that the assistive device lessor would have paid to finance the assistive device or, if the assistive device lessor does not finance the assistive device, the difference between the total amount for which the lease obligates the consumer during the period of the lease term remaining after the early termination and the present value of that amount at the date of the early termination.

(9) "Loaner" means an assistive technology device that is loaned to the user without charge while repairs are made to the user's assistive technology device.

(10) "Manufacturer" means a person who manufactures or assembles assistive devices and agents of that person, including an importer, a distributor, factory branch, distributor branch and any warrantors of the manufacturer's assistive device, but does not include an assistive device dealer.

(11) "Nonconformity" means a condition or defect that substantially impairs the use, value or safety of an assistive device, and that is covered by an express warranty applicable to the assistive device or to a component of the assistive device, but does not include a condition or defect that is the result of abuse, use which exceeds the manufacturer's recommendations, neglect or unauthorized modification or alteration of the assistive device by a consumer.

(12) "Reasonable attempt to repair" means, within the terms of an express warranty applicable to a new assistive device:

(A) any nonconformity within the warranty that is either subject to repair by the manufacturer, assistive device lessor or any of the manufacturer's authorized assistive device dealers, for at least three times and a nonconformity continues; or

(B) the assistive device is out of service for an aggregate of at least 30 cumulative days because of warranty nonconformity.
Vt. Stat. Ann. tit. 9, § 2467. Definitions.These definitions are for use in this subchapter only:

(1) "Assistive device" means an item, piece of equipment, or product system, whether acquired commercially off-the-shelf, modified, or customized, that is used or designed to be used to increase, maintain, or improve any functional capability of an individual with disabilities. An assistive device system, that as a whole is within the definition of this term, is itself an assistive device, and, in such cases, this term also applies to each component product of the assistive device system that is itself ordinarily an assistive device. For this section only and no other purposes, this term is limited to:

(A) wheelchairs and scooters of any kind, including all their assistive devices and components that enhance the mobility or positioning of an individual, such as motorization, motorized positioning features, and the switches and controls for any motorized features; and

(B) computer equipment with voice output, artificial larynges, voice amplification devices, and other alternative and augmentative communication devices or any devices used for the purpose of communication.

(2) "Assistive device dealer" means a person who is in the business of selling assistive devices to consumers.

(3) "Assistive device lessor" means a person who leases an assistive device to a consumer, or who holds the lessor's rights, under a written lease.

(4) "Collateral costs" means expenses incurred by a consumer in connection with the repair of a nonconformity, including the costs of obtaining an alternative assistive device.

(5) "Consumer" means any of the following:

(A) the purchaser of an assistive device, if the assistive device was purchased from an assistive device dealer or manufacturer for purposes other than resale;

(B) a person to whom the assistive device is transferred for purposes other than resale, if the transfer occurs before the expiration of an express warranty applicable to the assistive device;

(C) a person who may enforce the warranty; and

(D) a person who leases an assistive device from an assistive device lessor under a written lease.

(6) "Demonstrator" means an assistive device used primarily for the purpose of demonstration and tryout to the public.

(7) "Early termination cost" means any expense or obligation that an assistive device lessor incurs as a result of both the termination of a written lease before the termination date set forth in that lease and the return of an assistive device to a manufacturer pursuant to this section. Early termination cost includes a penalty for prepayment under a finance arrangement.

(8) "Early termination saving" means any expense or obligation that an assistive device lessor avoids as a result of both the termination of a written lease before that termination date set forth in that lease and the return of an assistive device to a manufacturer pursuant to this section. Early termination saving includes an interest charge that the assistive device lessor would have paid to finance the assistive device or, if the assistive device lessor does not finance the assistive device, the difference between the total amount for which the lease obligates the consumer during the period of the lease term remaining after the early termination and the present value of that amount at the date of the early termination.

(9) "Loaner" means an assistive technology device that is loaned to the user without charge while repairs are made to the user's assistive technology device.

(10) "Manufacturer" means a person who manufactures or assembles assistive devices and agents of that person, including an importer, a distributor, factory branch, distributor branch and any warrantors of the manufacturer's assistive device, but does not include an assistive device dealer.

(11) "Nonconformity" means a condition or defect that substantially impairs the use, value or safety of an assistive device, and that is covered by an express warranty applicable to the assistive device or to a component of the assistive device, but does not include a condition or defect that is the result of abuse, use which exceeds the manufacturer's recommendations, neglect or unauthorized modification or alteration of the assistive device by a consumer.

(12) "Reasonable attempt to repair" means, within the terms of an express warranty applicable to a new assistive device:

(A) any nonconformity within the warranty that is either subject to repair by the manufacturer, assistive device lessor or any of the manufacturer's authorized assistive device dealers, for at least three times and a nonconformity continues; or

(B) the assistive device is out of service for an aggregate of at least 30 cumulative days because of warranty nonconformity.

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Vt. Stat. Ann. tit. 9, § 2470b. Unsafe children's products; prohibition.(a) A children's product is deemed to be unsafe for purposes of this subchapter if it meets any of the following criteria:

(1) It does not conform to all federal laws and regulations setting forth standards for the children's product, including standards endorsed or established by the federal Consumer Product Safety Commission and the American Society for Testing and Materials.

(2) It has been recalled for any reason by an agency of the federal government or the product's manufacturer, distributor, or importer, and the recall has not been rescinded.

(3) An agency of the federal government has issued a warning that a specific product's intended use constitutes a safety hazard, and the warning has not been rescinded.

(b) The department of health shall create or adopt by reference, and shall maintain and update, a comprehensive list of children's products that it has identified as meeting any of the criteria set forth in subdivisions (a)(1) through (3) of this section. The department of health shall make the comprehensive list available to the public at no cost, and shall post it on its internet website. The department shall also encourage links to and from state, federal, and private internet websites that describe children's product standards, provide information on children or children's products, or advertise or sell children's products.

(c) It shall be an unfair or deceptive act or practice in commerce and a violation of section 2453 of this title, subject to enforcement and subject to the rights and remedies provided by subchapter 1 of this chapter, for a seller or lessor to remanufacture or retrofit (unless in compliance with the provisions of subsection (d) of this section), or for a seller or lessor to sell, contract to sell or resell, lease, sublet, or otherwise place in the stream of commerce, on or after January 1, 2002, a children's product that appears on the list of children's products created and maintained under subsection (b) of this section.

(d)(1) A listed children's product may be retrofitted if the retrofit has been approved or sanctioned by the agency of the federal government issuing the recall or warning or the agency responsible for approving the retrofit, if different from the agency issuing the recall or warning. A retrofitted children's product may be sold or leased if it is accompanied at the time of sale or lease by a notice containing:

(A) a description of the original problem which made the recalled product unsafe;

(B) a description of the retrofit which explains how the original problem was eliminated and declaring that it is now safe to use for a child under six years of age; and

(C) the name and address of the person who accomplished the retrofit.

(2) The seller or lessor is responsible for ensuring that the notice is present with the retrofitted product at the time of sale or lease. A retrofit is exempt from the provisions of this subchapter if:

(A) the retrofit is for a children's product that requires assembly by the consumer, the approved retrofit is provided with the product by the seller or lessor, and the retrofit is accompanied at the time of sale or lease by instructions explaining how to apply the retrofit; or

(B) the seller or lessor of a previously unsold or unleased product accomplishes the repair, approved or recommended by an agency of the federal government, prior to sale or lease.

(e) It shall be an unfair or deceptive act or practice in commerce and a violation of section 2453 of this title, subject to enforcement and subject to the rights and remedies provided by subchapter 1 of this chapter, for a person to manufacture, and to sell, contract to sell, resell, lease, sublet, or otherwise place in the stream of commerce, on or after January 1, 2002, a children's product that does not conform to all federal laws and regulations setting forth standards for the children's product, including standards endorsed or established by the federal Consumer Product Safety Commission and the American Society for Testing and Materials.

(f) At least annually, the department of health shall notify day care facilities and family child care homes licensed or registered under chapter 35 of Title 33 of the list of children's products created and maintained under subsection (b) of this section.

(g) At least annually, the department of health shall notify pediatricians licensed under chapter 23 of Title 26 of the list of children's products created and maintained under subsection (b) of this section.
Vt. Stat. Ann. tit. 9, § 2470b. Unsafe children's products; prohibition.(a) A children's product is deemed to be unsafe for purposes of this subchapter if it meets any of the following criteria:

(1) It does not conform to all federal laws and regulations setting forth standards for the children's product, including standards endorsed or established by the federal Consumer Product Safety Commission and the American Society for Testing and Materials.

(2) It has been recalled for any reason by an agency of the federal government or the product's manufacturer, distributor, or importer, and the recall has not been rescinded.

(3) An agency of the federal government has issued a warning that a specific product's intended use constitutes a safety hazard, and the warning has not been rescinded.

(b) The department of health shall create or adopt by reference, and shall maintain and update, a comprehensive list of children's products that it has identified as meeting any of the criteria set forth in subdivisions (a)(1) through (3) of this section. The department of health shall make the comprehensive list available to the public at no cost, and shall post it on its internet website. The department shall also encourage links to and from state, federal, and private internet websites that describe children's product standards, provide information on children or children's products, or advertise or sell children's products.

(c) It shall be an unfair or deceptive act or practice in commerce and a violation of section 2453 of this title, subject to enforcement and subject to the rights and remedies provided by subchapter 1 of this chapter, for a seller or lessor to remanufacture or retrofit (unless in compliance with the provisions of subsection (d) of this section), or for a seller or lessor to sell, contract to sell or resell, lease, sublet, or otherwise place in the stream of commerce, on or after January 1, 2002, a children's product that appears on the list of children's products created and maintained under subsection (b) of this section.

(d)(1) A listed children's product may be retrofitted if the retrofit has been approved or sanctioned by the agency of the federal government issuing the recall or warning or the agency responsible for approving the retrofit, if different from the agency issuing the recall or warning. A retrofitted children's product may be sold or leased if it is accompanied at the time of sale or lease by a notice containing:

(A) a description of the original problem which made the recalled product unsafe;

(B) a description of the retrofit which explains how the original problem was eliminated and declaring that it is now safe to use for a child under six years of age; and

(C) the name and address of the person who accomplished the retrofit.

(2) The seller or lessor is responsible for ensuring that the notice is present with the retrofitted product at the time of sale or lease. A retrofit is exempt from the provisions of this subchapter if:

(A) the retrofit is for a children's product that requires assembly by the consumer, the approved retrofit is provided with the product by the seller or lessor, and the retrofit is accompanied at the time of sale or lease by instructions explaining how to apply the retrofit; or

(B) the seller or lessor of a previously unsold or unleased product accomplishes the repair, approved or recommended by an agency of the federal government, prior to sale or lease.

(e) It shall be an unfair or deceptive act or practice in commerce and a violation of section 2453 of this title, subject to enforcement and subject to the rights and remedies provided by subchapter 1 of this chapter, for a person to manufacture, and to sell, contract to sell, resell, lease, sublet, or otherwise place in the stream of commerce, on or after January 1, 2002, a children's product that does not conform to all federal laws and regulations setting forth standards for the children's product, including standards endorsed or established by the federal Consumer Product Safety Commission and the American Society for Testing and Materials.

(f) At least annually, the department of health shall notify day care facilities and family child care homes licensed or registered under chapter 35 of Title 33 of the list of children's products created and maintained under subsection (b) of this section.

(g) At least annually, the department of health shall notify pediatricians licensed under chapter 23 of Title 26 of the list of children's products created and maintained under subsection (b) of this section.

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Vt. Stat. Ann. tit. 9, § 2480. Verification of change of consumer's address for preapproved offers of creditA credit card issuer that mails an offer or solicitation to receive a credit card and, in response, receives a completed application for a credit card that lists an address that is substantively different from the address on the offer or solicitation shall make a commercially reasonable attempt to verify the change of address, which may include checking addresses on other open accounts.Vt. Stat. Ann. tit. 9, § 2480. Verification of change of consumer's address for preapproved offers of creditA credit card issuer that mails an offer or solicitation to receive a credit card and, in response, receives a completed application for a credit card that lists an address that is substantively different from the address on the offer or solicitation shall make a commercially reasonable attempt to verify the change of address, which may include checking addresses on other open accounts.

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Vt. Stat. Ann. tit. 9, § 2480a. Definitions.For purposes of this subchapter:

(1) "Consumer" means a natural person residing in this state.

(2) "Credit report" means any written, oral, or other communication of any information by a credit reporting agency bearing on a consumer's credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living, including an investigative credit report. The term does not include:

(A) a report containing information solely as to transactions or experiences between the consumer and the person making the report; or

(B) an authorization or approval of a specific extension of credit directly or indirectly by the issuer of a credit card or similar device.

(3) "Credit reporting agency" or "agency" means any person which, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of reporting to third parties on the credit rating or creditworthiness of any consumer.

(4) "Identity theft" means the unauthorized use of another person's personal identifying information to obtain credit, goods, services, money, or property.

(5) "Investigative credit report" means a report in which information on a consumer's character, general reputation, personal characteristics, or mode of living is obtained through personal interviews with neighbors, friends, or associates of the consumer reported on or with others with whom the consumer is acquainted or who may have knowledge concerning any such items of information. The term does not include reports of specific factual information on a consumer's credit record obtained directly from a creditor of the consumer or from a credit reporting agency when such information was obtained directly from a creditor of the consumer or from the consumer.

(6) "Proper identification," as used in this subchapter, means that information generally deemed sufficient to identify a person.

(7) "Security freeze" means a notice placed in a credit report, at the request of the consumer, pursuant to section 2480h of this title.
Vt. Stat. Ann. tit. 9, § 2480a. Definitions.For purposes of this subchapter:

(1) "Consumer" means a natural person residing in this state.

(2) "Credit report" means any written, oral, or other communication of any information by a credit reporting agency bearing on a consumer's credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living, including an investigative credit report. The term does not include:

(A) a report containing information solely as to transactions or experiences between the consumer and the person making the report; or

(B) an authorization or approval of a specific extension of credit directly or indirectly by the issuer of a credit card or similar device.

(3) "Credit reporting agency" or "agency" means any person which, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of reporting to third parties on the credit rating or creditworthiness of any consumer.

(4) "Identity theft" means the unauthorized use of another person's personal identifying information to obtain credit, goods, services, money, or property.

(5) "Investigative credit report" means a report in which information on a consumer's character, general reputation, personal characteristics, or mode of living is obtained through personal interviews with neighbors, friends, or associates of the consumer reported on or with others with whom the consumer is acquainted or who may have knowledge concerning any such items of information. The term does not include reports of specific factual information on a consumer's credit record obtained directly from a creditor of the consumer or from a credit reporting agency when such information was obtained directly from a creditor of the consumer or from the consumer.

(6) "Proper identification," as used in this subchapter, means that information generally deemed sufficient to identify a person.

(7) "Security freeze" means a notice placed in a credit report, at the request of the consumer, pursuant to section 2480h of this title.

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Vt. Stat. Ann. tit. 9, § 2480b. Disclosure to consumers.(a) A credit reporting agency shall, upon request and proper identification of any consumer, clearly and accurately disclose to the consumer all information available to users at the time of the request pertaining to the consumer, including:

(1) any credit score or predictor relating to the consumer, in a form and manner that complies with such comments or guidelines as may be issued by the Federal Trade Commission;

(2) the names of users requesting information pertaining to the consumer during the prior 12-month period and the date of each request; and

(3) a clear and concise explanation of the information.

(b) As frequently as new telephone directories are published, the credit reporting agency shall cause to be listed its name and number in each telephone directory published to serve communities of this state. In accordance with rules adopted by the attorney general, the credit reporting agency shall make provision for consumers to request by telephone the information required to be disclosed pursuant to subsection (a) of this section at no cost to the consumer.

(c) Any time a credit reporting agency is required to make a written disclosure to consumers pursuant to 15 U.S.C. § 1681g, it shall disclose, in at least 12 point type, and in bold type as indicated, the following notice:

(1) Under Vermont law, you are allowed to receive one free copy of your credit report every 12 months from each credit reporting agency. If you would like to obtain your free credit report from [INSERT NAME OF COMPANY], you should contact us by [[writing to the following address: [INSERT ADDRESS FOR OBTAINING FREE CREDIT REPORT]] or [calling the following number: [INSERT TELEPHONE NUMBER FOR OBTAINING FREE CREDIT REPORT]] or both].

(2) Under Vermont law, no one may access your credit report without your permission except under the following limited circumstances:

(A) in response to a court order;

(B) for direct mail offers of credit;

(C) if you have given ongoing permission and you have an existing relationship with the person requesting a copy of your credit report;

(D) where the request for a credit report is related to an education loan made, guaranteed, or serviced by the Vermont Student Assistance Corporation;

(E) where the request for a credit report is by the Office of Child Support Services when investigating a child support case;

(F) where the request for a credit report is related to a credit transaction entered into prior to January 1, 1993; and

(G) where the request for a credit report is by the Vermont State Tax Department and is used for the purpose of collecting or investigating delinquent taxes.

(3) If you believe a law regulating consumer credit reporting has been violated, you may file a complaint with the Vermont Attorney General's Consumer Assistance Program, 104 Morrill Hall, University of Vermont, Burlington, Vermont 05405.

Vermont Consumers

Have the Right to Obtain a Security Freeze

You have a right to place a "security freeze" on your credit report pursuant to 9 V.S.A. § 2480h at no charge if you are a victim of identity theft. All other Vermont consumers will pay a fee to the credit reporting agency of up to $10.00 to place the freeze on their credit report. The security freeze will prohibit a credit reporting agency from releasing any information in your credit report without your express authorization. A security freeze must be requested in writing by certified mail.

The security freeze is designed to help prevent credit, loans, and services from being approved in your name without your consent. However, you should be aware that using a security freeze to take control over who gains access to the personal and financial information in your credit report may delay, interfere with, or prohibit the timely approval of any subsequent request or application you make regarding new loans, credit, mortgage, insurance, government services or payments, rental housing, employment, investment, license, cellular phone, utilities, digital signature, internet credit card transaction, or other services, including an extension of credit at point of sale.

When you place a security freeze on your credit report, within ten business days you will be provided a personal identification number or password to use if you choose to remove the freeze on your credit report or authorize the release of your credit report for a specific party, parties or period of time after the freeze is in place. To provide that authorization, you must contact the credit reporting agency and provide all of the following:

(1) The unique personal identification number or password provided by the credit reporting agency.

(2) Proper identification to verify your identity.

(3) The proper information regarding the third party or parties who are to receive the credit report or the period of time for which the report shall be available to users of the credit report.

A credit reporting agency may charge a fee of up to $5.00 to a consumer who is not a victim of identity theft to remove the freeze on your credit report or authorize the release of your credit report for a specific party, parties, or period of time after the freeze is in place. For a victim of identity theft, there is no charge when the victim submits a copy of a police report, investigative report, or complaint filed with a law enforcement agency about unlawful use of the victim's personal information by another person.

A credit reporting agency that receives a request from a consumer to lift temporarily a freeze on a credit report shall comply with the request no later than three business days after receiving the request.

A security freeze will not apply to "preauthorized approvals of credit." If you want to stop receiving preauthorized approvals of credit, you should call [INSERT PHONE NUMBERS] [ALSO INSERT ALL OTHER CONTACT INFORMATION FOR PRESCREENED OFFER OPT OUT.]

A security freeze does not apply to a person or entity, or its affiliates, or collection agencies acting on behalf of the person or entity with which you have an existing account that requests information in your credit report for the purposes of reviewing or collecting the account, provided you have previously given your consent to this use of your credit reports. Reviewing the account includes activities related to account maintenance, monitoring, credit line increases, and account upgrades and enhancements.

You have a right to bring a civil action against someone who violates your rights under the credit reporting laws. The action can be brought against a credit reporting agency or a user of your credit report."

(d) The information required to be disclosed by this section shall be disclosed in writing. The information required to be disclosed pursuant to subsection (c) of this section shall be disclosed on one side of a separate document, with text no smaller than that prescribed by the Federal Trade Commission for the notice required under 15 U.S.C. § 1681q. The information required to be disclosed pursuant to subsection (c) of this section may accurately reflect changes in numerical items that change over time (e.g. the phone number or address of Vermont state agencies), and remain in compliance.

(e) The attorney general may revise this required notice by rule as appropriate from time to time so long as no new substantive rights are created therein.
Vt. Stat. Ann. tit. 9, § 2480b. Disclosure to consumers.(a) A credit reporting agency shall, upon request and proper identification of any consumer, clearly and accurately disclose to the consumer all information available to users at the time of the request pertaining to the consumer, including:

(1) any credit score or predictor relating to the consumer, in a form and manner that complies with such comments or guidelines as may be issued by the Federal Trade Commission;

(2) the names of users requesting information pertaining to the consumer during the prior 12-month period and the date of each request; and

(3) a clear and concise explanation of the information.

(b) As frequently as new telephone directories are published, the credit reporting agency shall cause to be listed its name and number in each telephone directory published to serve communities of this state. In accordance with rules adopted by the attorney general, the credit reporting agency shall make provision for consumers to request by telephone the information required to be disclosed pursuant to subsection (a) of this section at no cost to the consumer.

(c) Any time a credit reporting agency is required to make a written disclosure to consumers pursuant to 15 U.S.C. § 1681g, it shall disclose, in at least 12 point type, and in bold type as indicated, the following notice:

(1) Under Vermont law, you are allowed to receive one free copy of your credit report every 12 months from each credit reporting agency. If you would like to obtain your free credit report from [INSERT NAME OF COMPANY], you should contact us by [[writing to the following address: [INSERT ADDRESS FOR OBTAINING FREE CREDIT REPORT]] or [calling the following number: [INSERT TELEPHONE NUMBER FOR OBTAINING FREE CREDIT REPORT]] or both].

(2) Under Vermont law, no one may access your credit report without your permission except under the following limited circumstances:

(A) in response to a court order;

(B) for direct mail offers of credit;

(C) if you have given ongoing permission and you have an existing relationship with the person requesting a copy of your credit report;

(D) where the request for a credit report is related to an education loan made, guaranteed, or serviced by the Vermont Student Assistance Corporation;

(E) where the request for a credit report is by the Office of Child Support Services when investigating a child support case;

(F) where the request for a credit report is related to a credit transaction entered into prior to January 1, 1993; and

(G) where the request for a credit report is by the Vermont State Tax Department and is used for the purpose of collecting or investigating delinquent taxes.

(3) If you believe a law regulating consumer credit reporting has been violated, you may file a complaint with the Vermont Attorney General's Consumer Assistance Program, 104 Morrill Hall, University of Vermont, Burlington, Vermont 05405.

Vermont Consumers

Have the Right to Obtain a Security Freeze

You have a right to place a "security freeze" on your credit report pursuant to 9 V.S.A. § 2480h at no charge if you are a victim of identity theft. All other Vermont consumers will pay a fee to the credit reporting agency of up to $10.00 to place the freeze on their credit report. The security freeze will prohibit a credit reporting agency from releasing any information in your credit report without your express authorization. A security freeze must be requested in writing by certified mail.

The security freeze is designed to help prevent credit, loans, and services from being approved in your name without your consent. However, you should be aware that using a security freeze to take control over who gains access to the personal and financial information in your credit report may delay, interfere with, or prohibit the timely approval of any subsequent request or application you make regarding new loans, credit, mortgage, insurance, government services or payments, rental housing, employment, investment, license, cellular phone, utilities, digital signature, internet credit card transaction, or other services, including an extension of credit at point of sale.

When you place a security freeze on your credit report, within ten business days you will be provided a personal identification number or password to use if you choose to remove the freeze on your credit report or authorize the release of your credit report for a specific party, parties or period of time after the freeze is in place. To provide that authorization, you must contact the credit reporting agency and provide all of the following:

(1) The unique personal identification number or password provided by the credit reporting agency.

(2) Proper identification to verify your identity.

(3) The proper information regarding the third party or parties who are to receive the credit report or the period of time for which the report shall be available to users of the credit report.

A credit reporting agency may charge a fee of up to $5.00 to a consumer who is not a victim of identity theft to remove the freeze on your credit report or authorize the release of your credit report for a specific party, parties, or period of time after the freeze is in place. For a victim of identity theft, there is no charge when the victim submits a copy of a police report, investigative report, or complaint filed with a law enforcement agency about unlawful use of the victim's personal information by another person.

A credit reporting agency that receives a request from a consumer to lift temporarily a freeze on a credit report shall comply with the request no later than three business days after receiving the request.

A security freeze will not apply to "preauthorized approvals of credit." If you want to stop receiving preauthorized approvals of credit, you should call [INSERT PHONE NUMBERS] [ALSO INSERT ALL OTHER CONTACT INFORMATION FOR PRESCREENED OFFER OPT OUT.]

A security freeze does not apply to a person or entity, or its affiliates, or collection agencies acting on behalf of the person or entity with which you have an existing account that requests information in your credit report for the purposes of reviewing or collecting the account, provided you have previously given your consent to this use of your credit reports. Reviewing the account includes activities related to account maintenance, monitoring, credit line increases, and account upgrades and enhancements.

You have a right to bring a civil action against someone who violates your rights under the credit reporting laws. The action can be brought against a credit reporting agency or a user of your credit report."

(d) The information required to be disclosed by this section shall be disclosed in writing. The information required to be disclosed pursuant to subsection (c) of this section shall be disclosed on one side of a separate document, with text no smaller than that prescribed by the Federal Trade Commission for the notice required under 15 U.S.C. § 1681q. The information required to be disclosed pursuant to subsection (c) of this section may accurately reflect changes in numerical items that change over time (e.g. the phone number or address of Vermont state agencies), and remain in compliance.

(e) The attorney general may revise this required notice by rule as appropriate from time to time so long as no new substantive rights are created therein.

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Vt. Stat. Ann. tit. 9, § 2480f. Violations.(a) A violation of this subchapter or rules adopted under this subchapter is deemed to be a violation of section 2453 of this title. This section shall not be construed to limit a credit reporting agency's liability under any other law.

(b) A consumer aggrieved by a violation of this subchapter or rules adopted under this subchapter may bring an action in superior court for the consumer's damages, injunctive relief, punitive damages in the case of a willful violation, and reasonable costs and attorneys fees. In the case of a violation by a credit reporting agency, or in the case of a willful violation by any person, the court, in addition, may issue an award for the consumer's actual damages or $100.00, whichever is greater. In considering the amount of punitive damages, the court may consider, among other relevant factors:

(1) the extent to which a credit reporting agency failed to consider relevant information provided by the consumer during any reinvestigation of information in the consumer's file; and

(2) the extent to which a credit reporting agency maintained and complied with procedures designed to ensure compliance with the requirements of this subchapter.

(c) The attorney general has the same authority to make rules, conduct civil investigations, and bring civil actions with respect to any alleged violations of this subchapter as is provided under subchapter 1 of this chapter.
Vt. Stat. Ann. tit. 9, § 2480f. Violations.(a) A violation of this subchapter or rules adopted under this subchapter is deemed to be a violation of section 2453 of this title. This section shall not be construed to limit a credit reporting agency's liability under any other law.

(b) A consumer aggrieved by a violation of this subchapter or rules adopted under this subchapter may bring an action in superior court for the consumer's damages, injunctive relief, punitive damages in the case of a willful violation, and reasonable costs and attorneys fees. In the case of a violation by a credit reporting agency, or in the case of a willful violation by any person, the court, in addition, may issue an award for the consumer's actual damages or $100.00, whichever is greater. In considering the amount of punitive damages, the court may consider, among other relevant factors:

(1) the extent to which a credit reporting agency failed to consider relevant information provided by the consumer during any reinvestigation of information in the consumer's file; and

(2) the extent to which a credit reporting agency maintained and complied with procedures designed to ensure compliance with the requirements of this subchapter.

(c) The attorney general has the same authority to make rules, conduct civil investigations, and bring civil actions with respect to any alleged violations of this subchapter as is provided under subchapter 1 of this chapter.

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Vt. Stat. Ann. tit. 9, § 2480o. Definitions.For purposes of this subchapter:

(1) "Electronic payment system" means an entity that directly or through licensed members, processors or agents provides the proprietary services, infrastructure and software that route information and data to facilitate transaction authorization, clearance and settlement, and that merchants are required to access in order to accept a specific brand of general-purpose credit cards, charge cards, debit cards or stored-value cards as payment for goods and services.

(2) "Merchant" means a person or entity that, in Vermont:

(A)(i) does business; or

(ii) offers goods or services for sale; and

(B) has a physical presence.
Vt. Stat. Ann. tit. 9, § 2480o. Definitions.For purposes of this subchapter:

(1) "Electronic payment system" means an entity that directly or through licensed members, processors or agents provides the proprietary services, infrastructure and software that route information and data to facilitate transaction authorization, clearance and settlement, and that merchants are required to access in order to accept a specific brand of general-purpose credit cards, charge cards, debit cards or stored-value cards as payment for goods and services.

(2) "Merchant" means a person or entity that, in Vermont:

(A)(i) does business; or

(ii) offers goods or services for sale; and

(B) has a physical presence.

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Vt. Stat. Ann. tit. 9, § 2480p. Electronic payment system.With respect to transactions involving Vermont merchants, no electronic payment system may directly or through any agent, processor or member of the system:

(1) Impose any requirement, condition, penalty or fine in a contract with a merchant to inhibit the ability of any merchant to provide a discount or other benefit for payment through the use of a card of another electronic payment system, cash, check, debit card, stored-value card, charge card or credit card rather than another form of payment.

(2) Impose any requirement, condition, penalty or fine in a contract with a merchant to prevent the ability of any merchant to set a minimum dollar value of no more than $10.00 for its acceptance of a form of payment, provided that if a minimum dollar value is set by a merchant, it shall be prominently displayed and printed in not less than 16-point boldface type at the point of sale.

(3) Impose any requirement, condition, penalty or fine in a contract with a merchant to inhibit the ability of any merchant to decide to accept an electronic payment system at one or more of its locations but not at others.
Vt. Stat. Ann. tit. 9, § 2480p. Electronic payment system.With respect to transactions involving Vermont merchants, no electronic payment system may directly or through any agent, processor or member of the system:

(1) Impose any requirement, condition, penalty or fine in a contract with a merchant to inhibit the ability of any merchant to provide a discount or other benefit for payment through the use of a card of another electronic payment system, cash, check, debit card, stored-value card, charge card or credit card rather than another form of payment.

(2) Impose any requirement, condition, penalty or fine in a contract with a merchant to prevent the ability of any merchant to set a minimum dollar value of no more than $10.00 for its acceptance of a form of payment, provided that if a minimum dollar value is set by a merchant, it shall be prominently displayed and printed in not less than 16-point boldface type at the point of sale.

(3) Impose any requirement, condition, penalty or fine in a contract with a merchant to inhibit the ability of any merchant to decide to accept an electronic payment system at one or more of its locations but not at others.

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Vt. Stat. Ann. tit. 9, § 2528. Fraudulent registration.Any person who shall for himself, or on behalf of any other person, procure the filing and registration of any trademark by making knowingly and wilfully any false or fraudulent representations or declarations, verbally, or in writing, or by any fraudulent means, shall be liable to pay all damages sustained in consequence of any such filing, to be recovered by or on behalf of the party injured thereby, in a civil action on this statute, and shall be fined not exceeding $500.00 or imprisoned not exceeding one year or both.

Vt. Stat. Ann. tit. 9, § 2528. Fraudulent registration.Any person who shall for himself, or on behalf of any other person, procure the filing and registration of any trademark by making knowingly and wilfully any false or fraudulent representations or declarations, verbally, or in writing, or by any fraudulent means, shall be liable to pay all damages sustained in consequence of any such filing, to be recovered by or on behalf of the party injured thereby, in a civil action on this statute, and shall be fined not exceeding $500.00 or imprisoned not exceeding one year or both.

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Vt. Stat. Ann. tit. 9, § 4043. Fraudulent use.A person shall not with intent to defraud, obtain, or attempt to obtain money, property, services or any other thing of value, by the use of a credit card which he knows, or reasonably shall have known, to have been stolen, forged, revoked, cancelled, unauthorized or invalid for use by him for such purpose. Vt. Stat. Ann. tit. 9, § 4043. Fraudulent use.A person shall not with intent to defraud, obtain, or attempt to obtain money, property, services or any other thing of value, by the use of a credit card which he knows, or reasonably shall have known, to have been stolen, forged, revoked, cancelled, unauthorized or invalid for use by him for such purpose.

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Vt. Stat. Ann. tit. 9, § 4147. Unfair and deceptive acts and practices.Failure of the manufacturer, its agents, authorized dealers, or motor vehicle lessors to comply with a decision of the board shall constitute an unfair or deceptive act or practice under 9 V.S.A. chapter 63. Vt. Stat. Ann. tit. 9, § 4147. Unfair and deceptive acts and practices.Failure of the manufacturer, its agents, authorized dealers, or motor vehicle lessors to comply with a decision of the board shall constitute an unfair or deceptive act or practice under 9 V.S.A. chapter 63.

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Vt. Stat. Ann. tit. 9, § 5501. General fraud.It is unlawful for a person, in connection with the offer to sell, the offer to purchase, the sale, or the purchase of a security, directly or indirectly:

(1) to employ a device, scheme, or artifice to defraud;

(2) to make an untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading; or

(3) to engage in an act, practice, or course of business that operates or would operate as a fraud or deceit upon another person.
Vt. Stat. Ann. tit. 9, § 5501. General fraud.It is unlawful for a person, in connection with the offer to sell, the offer to purchase, the sale, or the purchase of a security, directly or indirectly:

(1) to employ a device, scheme, or artifice to defraud;

(2) to make an untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading; or

(3) to engage in an act, practice, or course of business that operates or would operate as a fraud or deceit upon another person.

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Vt. Stat. Ann. tit. 9, § 5502. Prohibited conduct in providing investment advice
(a) It is unlawful for a person that advises others for compensation, either directly or indirectly or through publications or writings, as to the value of securities or the advisability of investing in, purchasing, or selling securities or that, for compensation and as part of a regular business, issues or adopts analyses or reports relating to securities:

(1) to employ a device, scheme, or artifice to defraud another person;

(2) to make an untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading; or

(3) to engage in an act, practice, or course of business that operates or would operate as a fraud or deceit upon another person.

(b) A rule adopted under this chapter may define an act, practice, or course of business of an investment adviser or an investment adviser representative, other than a supervised person of a federal covered investment adviser, as fraudulent, deceptive, or manipulative, and prescribe means reasonably designed to prevent investment advisers and investment adviser representatives, other than supervised persons of a federal covered investment adviser, from engaging in acts, practices, and courses of business defined as fraudulent, deceptive, or manipulative.

(c) A rule adopted under this chapter may specify the contents of an investment advisory contract entered into, extended, or renewed by an investment adviser.
Vt. Stat. Ann. tit. 9, § 5502. Prohibited conduct in providing investment advice
(a) It is unlawful for a person that advises others for compensation, either directly or indirectly or through publications or writings, as to the value of securities or the advisability of investing in, purchasing, or selling securities or that, for compensation and as part of a regular business, issues or adopts analyses or reports relating to securities:

(1) to employ a device, scheme, or artifice to defraud another person;

(2) to make an untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading; or

(3) to engage in an act, practice, or course of business that operates or would operate as a fraud or deceit upon another person.

(b) A rule adopted under this chapter may define an act, practice, or course of business of an investment adviser or an investment adviser representative, other than a supervised person of a federal covered investment adviser, as fraudulent, deceptive, or manipulative, and prescribe means reasonably designed to prevent investment advisers and investment adviser representatives, other than supervised persons of a federal covered investment adviser, from engaging in acts, practices, and courses of business defined as fraudulent, deceptive, or manipulative.

(c) A rule adopted under this chapter may specify the contents of an investment advisory contract entered into, extended, or renewed by an investment adviser.

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Vt. Stat. Ann. tit. 9, § 5505. Misleading filings.It is unlawful for a person to make or cause to be made, in a record that is used in an action or proceeding or filed under this chapter, a statement that, at the time and in the light of the circumstances under which it is made, is false or misleading in a material respect, or, in connection with the statement, to omit to state a material fact necessary to make the statement made, in the light of the circumstances under which it was made, not false or misleading.Vt. Stat. Ann. tit. 9, § 5505. Misleading filings.It is unlawful for a person to make or cause to be made, in a record that is used in an action or proceeding or filed under this chapter, a statement that, at the time and in the light of the circumstances under which it is made, is false or misleading in a material respect, or, in connection with the statement, to omit to state a material fact necessary to make the statement made, in the light of the circumstances under which it was made, not false or misleading.

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Vt. Stat. Ann. tit. 9, § 5506. Misrepresentations concerning registration or exemption.The filing of an application for registration, a registration statement, a notice filing under this chapter, the registration of a person, the notice filing by a person, or the registration of a security under this chapter does not constitute a finding by the commissioner that a record filed under this chapter is true, complete, and not misleading. The filing or registration or the availability of an exemption, exception, preemption, or exclusion for a security or a transaction does not mean that the commissioner has passed upon the merits or qualifications of, or recommended or given approval to, a person, security, or transaction. It is unlawful to make, or cause to be made, to a purchaser, customer, client, or prospective customer or client a representation inconsistent with this section.Vt. Stat. Ann. tit. 9, § 5506. Misrepresentations concerning registration or exemption.The filing of an application for registration, a registration statement, a notice filing under this chapter, the registration of a person, the notice filing by a person, or the registration of a security under this chapter does not constitute a finding by the commissioner that a record filed under this chapter is true, complete, and not misleading. The filing or registration or the availability of an exemption, exception, preemption, or exclusion for a security or a transaction does not mean that the commissioner has passed upon the merits or qualifications of, or recommended or given approval to, a person, security, or transaction. It is unlawful to make, or cause to be made, to a purchaser, customer, client, or prospective customer or client a representation inconsistent with this section.

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Vt. Stat. Ann. tit. 11, § 1602. Consumer protection; enforcement. (a) For purposes of this section, "consumer" means an actual or prospective subscriber, purchaser, member, assignee, or transferee of a cooperative interest with respect to a residential unit. A "consumer" includes a co-obligor or surety for a consumer.

(b) To the extent that a violation of a provision of this chapter affects a consumer, that violation is deemed to be a violation of 9 V.S.A. § 2453 and is subject to all rights, obligations, and penalties provided under 9 V.S.A. chapter 63.

(c) Failure or neglect to provide to subscribers or purchasers the documents and disclosures required by section 1601 of this title is deemed to be a violation of this section.
Vt. Stat. Ann. tit. 11, § 1602. Consumer protection; enforcement. (a) For purposes of this section, "consumer" means an actual or prospective subscriber, purchaser, member, assignee, or transferee of a cooperative interest with respect to a residential unit. A "consumer" includes a co-obligor or surety for a consumer.

(b) To the extent that a violation of a provision of this chapter affects a consumer, that violation is deemed to be a violation of 9 V.S.A. § 2453 and is subject to all rights, obligations, and penalties provided under 9 V.S.A. chapter 63.

(c) Failure or neglect to provide to subscribers or purchasers the documents and disclosures required by section 1601 of this title is deemed to be a violation of this section.

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Vt. Stat. Ann. tit. 13, § 2001. False personation.A person who falsely personates or represents another, and in such assumed character receives money or other property intended to be delivered to the party so personated, with intent to convert the same to the person's own use, shall be imprisoned not more than 10 years or fined not more than $2,000.00, or both. Vt. Stat. Ann. tit. 13, § 2001. False personation.A person who falsely personates or represents another, and in such assumed character receives money or other property intended to be delivered to the party so personated, with intent to convert the same to the person's own use, shall be imprisoned not more than 10 years or fined not more than $2,000.00, or both.

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Vt. Stat. Ann. tit. 13, § 2002. False pretenses or tokens.A person who designedly by false pretenses or by privy or false token and with intent to defraud, obtains from another person money or other property, or a release or discharge of a debt or obligation, or the signature of a person to a written instrument, the false making whereof would be punishable as forgery, shall be imprisoned not more than 10 years or fined not more than $2,000.00, or both, if the money or property so obtained exceeds $900.00 in value. A person who violates this section shall be imprisoned for not more than one year or fined not more than $1,000.00, or both, if the money or property obtained in violation of this section is valued at $900.00 or less. Vt. Stat. Ann. tit. 13, § 2002. False pretenses or tokens.A person who designedly by false pretenses or by privy or false token and with intent to defraud, obtains from another person money or other property, or a release or discharge of a debt or obligation, or the signature of a person to a written instrument, the false making whereof would be punishable as forgery, shall be imprisoned not more than 10 years or fined not more than $2,000.00, or both, if the money or property so obtained exceeds $900.00 in value. A person who violates this section shall be imprisoned for not more than one year or fined not more than $1,000.00, or both, if the money or property obtained in violation of this section is valued at $900.00 or less.

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Vt. Stat. Ann. tit. 13, § 2005. False advertising.A person, firm, corporation or association, or an agent or employee thereof, who, with intent to sell courses of instruction or to dispose of merchandise, real estate, securities or service or to induce the public to enter into any obligations relating thereto, shall knowingly make, publish, circulate or place before the public on radio or television or in a newspaper, magazine or other publication or in form of a book, notice, circular, pamphlet, letter, handbill, poster, bill, sign, placard, card, label or tag, or through an electronic communication, an advertisement or statement regarding educational advantages, merchandise, real estate, securities or service, which advertisement or statement shall contain anything untrue, deceptive or misleading, shall be fined not more than $1,000.00.Vt. Stat. Ann. tit. 13, § 2005. False advertising.A person, firm, corporation or association, or an agent or employee thereof, who, with intent to sell courses of instruction or to dispose of merchandise, real estate, securities or service or to induce the public to enter into any obligations relating thereto, shall knowingly make, publish, circulate or place before the public on radio or television or in a newspaper, magazine or other publication or in form of a book, notice, circular, pamphlet, letter, handbill, poster, bill, sign, placard, card, label or tag, or through an electronic communication, an advertisement or statement regarding educational advantages, merchandise, real estate, securities or service, which advertisement or statement shall contain anything untrue, deceptive or misleading, shall be fined not more than $1,000.00.

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Vt. Stat. Ann. tit. 13, § 2006. False statement as to financial ability.A person shall not knowingly make to a person, company or corporation, or to a commercial agency, a false statement in writing signed by himself, herself or by his or her direction, with intent that it shall be relied upon, respecting his or her financial condition, or the financial ability to pay of himself, herself or other person, company or corporation in which he or she is financially interested or by which he is employed as manager, secretary or superintendent, for the purpose of procuring in any form the delivery of personal property, the payment of cash, the making of a loan or credit, the extension of a credit, the discount of an account receivable, or the making, acceptance, discount, sale or indorsement of a bill of exchange or promissory note, for the benefit of himself, herself or such other person, company or corporation.

Vt. Stat. Ann. tit. 13, § 2006. False statement as to financial ability.A person shall not knowingly make to a person, company or corporation, or to a commercial agency, a false statement in writing signed by himself, herself or by his or her direction, with intent that it shall be relied upon, respecting his or her financial condition, or the financial ability to pay of himself, herself or other person, company or corporation in which he or she is financially interested or by which he is employed as manager, secretary or superintendent, for the purpose of procuring in any form the delivery of personal property, the payment of cash, the making of a loan or credit, the extension of a credit, the discount of an account receivable, or the making, acceptance, discount, sale or indorsement of a bill of exchange or promissory note, for the benefit of himself, herself or such other person, company or corporation.

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Vt. Stat. Ann. tit. 13, § 2019. Manufacture and sale of devices for cheating.A person who manufactures for sale, advertises for sale, sells, offers for sale, or gives away any slug, device or substance whatsoever, designed or calculated to be placed or deposited in any automatic vending machine, slot machine, turnstile, coin-box telephone or other such receptacle, depository or contrivance, designed to receive lawful coin of the United States in connection with the sale, use or enjoyment of property or service, with the intent or having cause to believe that such slug, device or substance shall or will be used to cheat or defraud the person entitled to the contents of any such machine, turnstile, coin-box telephone or other such receptacle, depository or contrivance, shall be fined not more than $500.00, or be imprisoned for not more than one year, or both. Vt. Stat. Ann. tit. 13, § 2019. Manufacture and sale of devices for cheating.A person who manufactures for sale, advertises for sale, sells, offers for sale, or gives away any slug, device or substance whatsoever, designed or calculated to be placed or deposited in any automatic vending machine, slot machine, turnstile, coin-box telephone or other such receptacle, depository or contrivance, designed to receive lawful coin of the United States in connection with the sale, use or enjoyment of property or service, with the intent or having cause to believe that such slug, device or substance shall or will be used to cheat or defraud the person entitled to the contents of any such machine, turnstile, coin-box telephone or other such receptacle, depository or contrivance, shall be fined not more than $500.00, or be imprisoned for not more than one year, or both.

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Vt. Stat. Ann. tit. 13, § 2028. Fraudulent violations of joint fiduciary accounts.
(a) No person shall intentionally violate subsection 14212(b) or (e) of Title 8 while acting as a fiduciary on a joint fiduciary account.

(b) A person who violates this section, or misappropriates funds of $500.00 or less in violation of this section, shall be imprisoned not more than two years or fined not more than $10,000.00, or both.

(c) A person who misappropriates funds of more than $500.00 in violation of this section, or who is convicted of a second or subsequent violation of this section, shall be imprisoned not more than 10 years or fined not more than $10,000.00, or both.
Vt. Stat. Ann. tit. 13, § 2028. Fraudulent violations of joint fiduciary accounts.
(a) No person shall intentionally violate subsection 14212(b) or (e) of Title 8 while acting as a fiduciary on a joint fiduciary account.

(b) A person who violates this section, or misappropriates funds of $500.00 or less in violation of this section, shall be imprisoned not more than two years or fined not more than $10,000.00, or both.

(c) A person who misappropriates funds of more than $500.00 in violation of this section, or who is convicted of a second or subsequent violation of this section, shall be imprisoned not more than 10 years or fined not more than $10,000.00, or both.

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Vt. Stat. Ann. tit. 13, § 2029. Home improvement fraud.(a) As used in this section, "home improvement" includes the fixing, replacing, remodeling, removing, renovation, alteration, conversion, improvement, demolition, or rehabilitation of or addition to any building or land, or any portion thereof, which is used or designed to be used as a residence or dwelling unit. Home improvement shall include the construction, replacement, installation, paving, or improvement of driveways, roofs, and sidewalks, and the limbing, pruning, and removal of trees or shrubbery and other improvements to structures or upon land that is adjacent to a dwelling house.

(b) A person commits the offense of home improvement fraud when he or she knowingly enters into a contract or agreement, written or oral, for $500.00 or more, with an owner for home improvement, or into several contracts or agreements for $2,500.00 or more in the aggregate, with more than one owner for home improvement, and he or she knowingly:

(1) promises performance that he or she does not intend to perform or knows will not be performed, in whole or in part;

(2) misrepresents a material fact relating to the terms of the contract or agreement or to the condition of any portion of the property involved;

(3) uses or employs any unfair or deceptive act or practice in order to induce, encourage, or solicit such person to enter into any contract or agreement or to modify the terms of the original contract or agreement; or

(4) when there is a declared state of emergency, charges for goods or services related to the emergency a price that exceeds two times the average price for the goods or services and the increase is not attributable to the additional costs incurred in connection with providing those goods or services.

(c) It shall be a permissive inference that the person acted knowingly under subdivision (b)(1) of this section if the person fails to perform the contract or agreement and, when the owner requests performance of the contract or agreement or a refund of payments made, the person fails to:

(1) return the payments or deliver the materials or make and comply with a reasonable written repayment plan for the return of the payments; or

(2) make and comply with a reasonable written plan for completion of the contract or agreement.

(d) Whenever a person is convicted of home improvement fraud or of fraudulent acts related to home improvement:

(1) the person shall notify the office of attorney general;

(2) the court shall notify the office of the attorney general; and

(3) the office of attorney general shall place the person's name on the home improvement fraud registry.

(e)(1) A person who violates subsection (b) of this section shall be imprisoned not more than two years or fined not more than $1,000.00, or both, if the loss to a single consumer is less than $1,000.00.

(2) A person who is convicted of a second or subsequent violation of subdivision (1) of this subsection shall be imprisoned not more than three years or fined not more than $5,000.00, or both.

(3) A person who violates subsection (b) of this section shall be imprisoned not more than three years or fined not more than $5,000.00, or both, if:

(A) the loss to a single consumer is $1,000.00 or more; or

(B) the loss to more than one consumer is $2,500.00 or more in the aggregate.

(4) A person who is convicted of a second or subsequent violation of subdivision (3) of this subsection shall be imprisoned not more than five years or fined not more than $10,000.00, or both.

(5) A person who violates subsection (d) or (f) of this section shall be imprisoned for not more than two years or fined not more than $1,000.00, or both.

(f) A person who is sentenced pursuant to subdivision (e)(2), (3), or (4) of this section may engage in home improvement activities for compensation only if:

(1) the work is for a company or individual engaged in home improvement activities, and the person first notifies the company or individual of the conviction and notifies the office of attorney general of the person's current address and telephone number; the name, address, and telephone number of the company or individual for whom the person is going to work; and the date on which the person will start working for the company or individual; or

(2) the person notifies the office of attorney general of the intent to engage in home improvement activities, and that the person has filed a surety bond or an irrevocable letter of credit with the office in an amount of not less than $50,000.00, and pays on a regular basis all fees associated with maintaining such bond or letter of credit.

(g) The office of attorney general shall release the letter of credit at such time when:

(1) any claims against the person relating to home improvement fraud have been paid;

(2) there are no pending actions or claims against the person for home improvement fraud; and

(3) the person has not been engaged in home improvement activities for at least six years and has signed an affidavit so attesting.

(h) A person who is convicted of fraudulent acts related to home improvement shall be required to comply with subsections (d) and (f) of this section.
Vt. Stat. Ann. tit. 13, § 2029. Home improvement fraud.(a) As used in this section, "home improvement" includes the fixing, replacing, remodeling, removing, renovation, alteration, conversion, improvement, demolition, or rehabilitation of or addition to any building or land, or any portion thereof, which is used or designed to be used as a residence or dwelling unit. Home improvement shall include the construction, replacement, installation, paving, or improvement of driveways, roofs, and sidewalks, and the limbing, pruning, and removal of trees or shrubbery and other improvements to structures or upon land that is adjacent to a dwelling house.

(b) A person commits the offense of home improvement fraud when he or she knowingly enters into a contract or agreement, written or oral, for $500.00 or more, with an owner for home improvement, or into several contracts or agreements for $2,500.00 or more in the aggregate, with more than one owner for home improvement, and he or she knowingly:

(1) promises performance that he or she does not intend to perform or knows will not be performed, in whole or in part;

(2) misrepresents a material fact relating to the terms of the contract or agreement or to the condition of any portion of the property involved;

(3) uses or employs any unfair or deceptive act or practice in order to induce, encourage, or solicit such person to enter into any contract or agreement or to modify the terms of the original contract or agreement; or

(4) when there is a declared state of emergency, charges for goods or services related to the emergency a price that exceeds two times the average price for the goods or services and the increase is not attributable to the additional costs incurred in connection with providing those goods or services.

(c) It shall be a permissive inference that the person acted knowingly under subdivision (b)(1) of this section if the person fails to perform the contract or agreement and, when the owner requests performance of the contract or agreement or a refund of payments made, the person fails to:

(1) return the payments or deliver the materials or make and comply with a reasonable written repayment plan for the return of the payments; or

(2) make and comply with a reasonable written plan for completion of the contract or agreement.

(d) Whenever a person is convicted of home improvement fraud or of fraudulent acts related to home improvement:

(1) the person shall notify the office of attorney general;

(2) the court shall notify the office of the attorney general; and

(3) the office of attorney general shall place the person's name on the home improvement fraud registry.

(e)(1) A person who violates subsection (b) of this section shall be imprisoned not more than two years or fined not more than $1,000.00, or both, if the loss to a single consumer is less than $1,000.00.

(2) A person who is convicted of a second or subsequent violation of subdivision (1) of this subsection shall be imprisoned not more than three years or fined not more than $5,000.00, or both.

(3) A person who violates subsection (b) of this section shall be imprisoned not more than three years or fined not more than $5,000.00, or both, if:

(A) the loss to a single consumer is $1,000.00 or more; or

(B) the loss to more than one consumer is $2,500.00 or more in the aggregate.

(4) A person who is convicted of a second or subsequent violation of subdivision (3) of this subsection shall be imprisoned not more than five years or fined not more than $10,000.00, or both.

(5) A person who violates subsection (d) or (f) of this section shall be imprisoned for not more than two years or fined not more than $1,000.00, or both.

(f) A person who is sentenced pursuant to subdivision (e)(2), (3), or (4) of this section may engage in home improvement activities for compensation only if:

(1) the work is for a company or individual engaged in home improvement activities, and the person first notifies the company or individual of the conviction and notifies the office of attorney general of the person's current address and telephone number; the name, address, and telephone number of the company or individual for whom the person is going to work; and the date on which the person will start working for the company or individual; or

(2) the person notifies the office of attorney general of the intent to engage in home improvement activities, and that the person has filed a surety bond or an irrevocable letter of credit with the office in an amount of not less than $50,000.00, and pays on a regular basis all fees associated with maintaining such bond or letter of credit.

(g) The office of attorney general shall release the letter of credit at such time when:

(1) any claims against the person relating to home improvement fraud have been paid;

(2) there are no pending actions or claims against the person for home improvement fraud; and

(3) the person has not been engaged in home improvement activities for at least six years and has signed an affidavit so attesting.

(h) A person who is convicted of fraudulent acts related to home improvement shall be required to comply with subsections (d) and (f) of this section.

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Vt. Stat. Ann. tit. 13, § 2030. Identity theft.(a) No person shall obtain, produce, possess, use, sell, give, or transfer personal identifying information belonging or pertaining to another person with intent to use the information to commit a misdemeanor or a felony.

(b) No person shall knowingly or recklessly obtain, produce, possess, use, sell, give, or transfer personal identifying information belonging or pertaining to another person without the consent of the other person and knowingly or recklessly facilitating the use of the information by a third person to commit a misdemeanor or a felony.

(c) For the purposes of this section, "personal identifying information" includes name, address, birth date, Social Security number, motor vehicle personal identification number, telephone number, financial services account number, savings account number, checking account number, credit card number, debit card number, picture, identification document or false identification document, electronic identification number, educational record, health care record, financial record, credit record, employment record, e-mail address, computer system password, or mother's maiden name, or similar personal number, record, or information.

(d) This section shall not apply when a person obtains the personal identifying information belonging or pertaining to another person to misrepresent the person's age for the sole purpose of obtaining alcoholic beverages, tobacco, or another privilege denied based on age.

(e) It shall be an affirmative defense to an action brought pursuant to this section, to be proven by a preponderance of the evidence, that the person had the consent of the person to whom the personal identifying information relates or pertains.

(f) A person who violates this section shall be imprisoned for not more than three years or fined not more $5,000.00, or both. A person who is convicted of a second or subsequent violation of this section involving a separate scheme shall be imprisoned for not more than 10 years or fined not more than $10,000.00, or both.
Vt. Stat. Ann. tit. 13, § 2030. Identity theft.(a) No person shall obtain, produce, possess, use, sell, give, or transfer personal identifying information belonging or pertaining to another person with intent to use the information to commit a misdemeanor or a felony.

(b) No person shall knowingly or recklessly obtain, produce, possess, use, sell, give, or transfer personal identifying information belonging or pertaining to another person without the consent of the other person and knowingly or recklessly facilitating the use of the information by a third person to commit a misdemeanor or a felony.

(c) For the purposes of this section, "personal identifying information" includes name, address, birth date, Social Security number, motor vehicle personal identification number, telephone number, financial services account number, savings account number, checking account number, credit card number, debit card number, picture, identification document or false identification document, electronic identification number, educational record, health care record, financial record, credit record, employment record, e-mail address, computer system password, or mother's maiden name, or similar personal number, record, or information.

(d) This section shall not apply when a person obtains the personal identifying information belonging or pertaining to another person to misrepresent the person's age for the sole purpose of obtaining alcoholic beverages, tobacco, or another privilege denied based on age.

(e) It shall be an affirmative defense to an action brought pursuant to this section, to be proven by a preponderance of the evidence, that the person had the consent of the person to whom the personal identifying information relates or pertains.

(f) A person who violates this section shall be imprisoned for not more than three years or fined not more $5,000.00, or both. A person who is convicted of a second or subsequent violation of this section involving a separate scheme shall be imprisoned for not more than 10 years or fined not more than $10,000.00, or both.

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Vt. Stat. Ann. tit. 13, § 2031. Insurance fraud.(a) Definitions. As used in this section:

(1) "Conceal" means to take affirmative action intended to prevent others from discovering information. Mere failure to disclose information does not constitute concealment.

(2) "Insurance policy" has the same meaning as in 8 V.S.A. § 4722(3) and includes a workers' compensation policy issued pursuant to chapter 9 of Title 21.

(3) "Insurer" has the same meaning as in 8 V.S.A. § 4901(2) and includes a workers' compensation insurer pursuant to chapter 9 of Title 21.

(b) Fraudulent insurance act. No person shall, with intent to defraud:

(1) present or cause to be presented a claim for payment or benefit, pursuant to any insurance policy, that contains false representations as to any material fact or which conceals a material fact; or

(2) present or cause to be presented any information which contains false representations as to any material fact or which conceals a material fact concerning the solicitation for sale of any insurance policy or purported insurance policy, an application for certificate of authority, or the financial condition of any insurer.

(c) Penalties. A person who violates subsection (b) of this section shall:

(1) if the benefit wrongfully obtained or the loss suffered by any person as a result of the violation has a value of less than $900.00, be imprisoned for not more than six months or fined not more than $5,000.00, or both; or

(2) if the benefit wrongfully obtained or the loss suffered by any person as a result of the violation has a value of more than $900.00, be imprisoned for not more than five years or fined not more than $10,000.00, or both; or

(3) for a second or subsequent offense, regardless of the value of the benefit wrongfully obtained, be imprisoned not more than five years or fined not more than $20,000.00, or both.

(d) Administrative action. Upon the conviction of a practitioner for a violation of subsection (b) of this section, the prosecutor shall inform the appropriate licensing authority. Any victim may notify the appropriate licensing authorities in this state and any other jurisdiction in which the practitioner is licensed of the conviction.

(e) This section shall not be construed to limit or restrict prosecution under any other applicable law.

(f) Immunity. No insurer or insurance professional acting in good faith and furnishing or disclosing information to the appropriate law enforcement official shall be subject to civil liability for libel, slander, or any other cause of action arising from the furnishing or disclosing of such information, except if the information is furnished solely to obtain an advantage in connection with a claim that will be, is being, or has been filed.

(g) The public policy of this state is that the standards of this section shall not apply or be introduced into evidence in any civil or administrative proceeding, whether to argue public policy, materiality, or for any other purpose.
Vt. Stat. Ann. tit. 13, § 2031. Insurance fraud.(a) Definitions. As used in this section:

(1) "Conceal" means to take affirmative action intended to prevent others from discovering information. Mere failure to disclose information does not constitute concealment.

(2) "Insurance policy" has the same meaning as in 8 V.S.A. § 4722(3) and includes a workers' compensation policy issued pursuant to chapter 9 of Title 21.

(3) "Insurer" has the same meaning as in 8 V.S.A. § 4901(2) and includes a workers' compensation insurer pursuant to chapter 9 of Title 21.

(b) Fraudulent insurance act. No person shall, with intent to defraud:

(1) present or cause to be presented a claim for payment or benefit, pursuant to any insurance policy, that contains false representations as to any material fact or which conceals a material fact; or

(2) present or cause to be presented any information which contains false representations as to any material fact or which conceals a material fact concerning the solicitation for sale of any insurance policy or purported insurance policy, an application for certificate of authority, or the financial condition of any insurer.

(c) Penalties. A person who violates subsection (b) of this section shall:

(1) if the benefit wrongfully obtained or the loss suffered by any person as a result of the violation has a value of less than $900.00, be imprisoned for not more than six months or fined not more than $5,000.00, or both; or

(2) if the benefit wrongfully obtained or the loss suffered by any person as a result of the violation has a value of more than $900.00, be imprisoned for not more than five years or fined not more than $10,000.00, or both; or

(3) for a second or subsequent offense, regardless of the value of the benefit wrongfully obtained, be imprisoned not more than five years or fined not more than $20,000.00, or both.

(d) Administrative action. Upon the conviction of a practitioner for a violation of subsection (b) of this section, the prosecutor shall inform the appropriate licensing authority. Any victim may notify the appropriate licensing authorities in this state and any other jurisdiction in which the practitioner is licensed of the conviction.

(e) This section shall not be construed to limit or restrict prosecution under any other applicable law.

(f) Immunity. No insurer or insurance professional acting in good faith and furnishing or disclosing information to the appropriate law enforcement official shall be subject to civil liability for libel, slander, or any other cause of action arising from the furnishing or disclosing of such information, except if the information is furnished solely to obtain an advantage in connection with a claim that will be, is being, or has been filed.

(g) The public policy of this state is that the standards of this section shall not apply or be introduced into evidence in any civil or administrative proceeding, whether to argue public policy, materiality, or for any other purpose.

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Vt. Stat. Ann. tit. 18, § 9403. Division of health care administration; purposes The division of health care administration is created in the department of banking, insurance, securities, and health care administration. The division shall assist the commissioner in carrying out the policies of the state regarding health care delivery, cost and quality, by providing oversight of health care quality and expenditures through the certificate of need program and the unified health care budget for the state or with respect to Vermont residents, establishment and maintenance of consumer protection functions, and oversight of quality assurance within the health care system. The division shall also establish and maintain a data base with information needed to carry out the commissioner's duties and obligations under this chapter and Title 8.Vt. Stat. Ann. tit. 18, § 9403. Division of health care administration; purposes The division of health care administration is created in the department of banking, insurance, securities, and health care administration. The division shall assist the commissioner in carrying out the policies of the state regarding health care delivery, cost and quality, by providing oversight of health care quality and expenditures through the certificate of need program and the unified health care budget for the state or with respect to Vermont residents, establishment and maintenance of consumer protection functions, and oversight of quality assurance within the health care system. The division shall also establish and maintain a data base with information needed to carry out the commissioner's duties and obligations under this chapter and Title 8.

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Vt. Stat. Ann. tit. 18, § 9334. Genetic testing as a condition of insurance coverage (a) No policy of insurance offered for delivery or issued in this state shall be underwritten or conditioned on the basis of:

(1) any requirement or agreement of the individual to undergo genetic testing; or

(2) the results of genetic testing of a member of the individual's family.

(b) A violation of this section shall be considered an unfair method of competition or unfair or deceptive act or practice in the business of insurance in violation of section 4724 of Title 8.

(c) In addition to other remedies available under the law, a person who violates this section shall be subject to the enforcement provisions available under Title 8.
Vt. Stat. Ann. tit. 18, § 9334. Genetic testing as a condition of insurance coverage (a) No policy of insurance offered for delivery or issued in this state shall be underwritten or conditioned on the basis of:

(1) any requirement or agreement of the individual to undergo genetic testing; or

(2) the results of genetic testing of a member of the individual's family.

(b) A violation of this section shall be considered an unfair method of competition or unfair or deceptive act or practice in the business of insurance in violation of section 4724 of Title 8.

(c) In addition to other remedies available under the law, a person who violates this section shall be subject to the enforcement provisions available under Title 8.

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Vt. Stat. Ann. tit. 30, § 231a. Registration of billing aggregators. (a) Definitions. As used in this section, unless the context otherwise indicates:

(1) "Bill" means a direct statement of payments due and any other form of notice soliciting payment.

(2) "Billing agent" means a local exchange carrier or other person offering telecommunications service who includes in a bill it sends to a customer a charge for a product or service offered by a service provider.

(3) "Billing aggregator" means any person, other than a service provider, who forwards the charge for a product or service offered by a service provider to a billing agent.

(4) "Service provider" means any person, other than the billing agent, that offers a product or service to a customer, the charge for which appears on the bill of a billing agent.

(5) "Telecommunications carrier" means a company subject to the jurisdiction of the public service board under subdivision 203(5) of this title.

(6) "Unauthorized service" means the provision of any service or product by a service provider that a customer has not authorized, and for which a charge appears on the customer's telephone bill. Charges for collect calls shall be exempt from this section.

(b) Registration requirements. Except as provided in this subsection, no billing aggregator may forward charges for a service or product offered by a service provider to a billing agent for presentation to a customer, unless the billing aggregator is registered with the public service board. A registration properly filed with the public service board takes effect 14 days after the filing date, unless the public service department objects to the registration and provides notice of its objection to the registrant within the 14 days. If the public service department objects to the registration, the registration does not become effective, unless expressly approved by the public service board. The public service board shall offer a person whose registration has been rejected an opportunity for a hearing. A registration, once effective, remains effective until revoked by the public service board or surrendered by the holder. A company that provides telecommunications service in this state

pursuant to a certificate of public good or equivalent authority under this title is not required to be registered under this subsection.

(c) Revocation of registration; notice.

(1) After opportunity for hearing, the public service board may revoke the registration of a billing aggregator who has:

(A) provided false or deceptive information in registering under this section;

(B) knowingly, negligently or repeatedly forwarded a charge to a billing agent for a product or service that the consumer did not authorize;

(C) failed to provide a notice to customers as required by rule or order of the public service board, or otherwise failed to comply with a rule or order of the public service board; or

(D) engaged in any other false or deceptive practices.

(2) Immediately following a revocation of registration under this subsection, the public service board shall provide notice of the revocation, in a form and manner established by the public service board by rule, to all telecommunications carriers doing business in this state.

(d) Procedure upon complaint. If a customer of a telecommunications carrier claims that a charge for an unauthorized service has been included in the customer's telephone bill, the telecommunications carrier shall immediately suspend collection efforts on that portion of the customer's bill. The telecommunications carrier shall either cease collection efforts entirely with regard to the disputed charge or request evidence from the billing aggregator that the customer authorized the service for which payment is sought. If the telecommunications carrier ceases collection efforts or sufficient evidence of customer authorization is not presented to the telecommunications carrier within a reasonable time, the telecommunications carrier shall immediately remove any charges associated with the unauthorized service from the customer's bill and refund to the customer any amounts paid for the unauthorized service that were billed by the telecommunications carrier during the six months prior t

o the customer's complaint. If sufficient evidence of customer authorization is provided to the telecommunications carrier, the telecommunications carrier may restore the charges on the customer's bill and reinstitute collection efforts. The customer or the billing aggregator may appeal the telecommunications carrier's determination to the public service board.

(e) Enforcement authority. In addition to any other authority the public service board may have pursuant to other law, the public service board may enforce the provisions of this section in accordance with this subsection:

(1) In an adjudicatory proceeding, the public service board may impose an administrative penalty upon the following entities for the following violations:

(A) a billing aggregator who forwards charges to a billing agent for an unauthorized product or service;

(B) a billing aggregator who is required to be registered under subsection (b) of this section and who is not properly registered pursuant to that subsection and who forwards charges for a product or service that appear on the bill of a billing agent;

(C) a billing agent who knowingly bills on behalf of a billing aggregator who is required to be registered under subsection (b) of this section and who is not properly registered pursuant to that subsection at the time the bill which is to be sent to the customer is generated, except that a billing agent who bills on behalf of a billing aggregator whose registration has been revoked shall not be subject to administrative penalty if the bill which is to be sent to the customer was generated within 14 days of the revocation of the registration and the billing agent did not have actual notice of the revocation;

(D) a telecommunications carrier that, without having first obtained evidence of authorization that the telecommunications carrier believed in good faith to be sufficient, does not remove the charges for any service which is the subject of a complaint under subsection (d) of this section and does not refund to the customer any amounts paid for the unauthorized service that were billed by the telecommunications carrier during the six months prior to the customer's complaint. For purposes of this section, evidence that a call was dialed from the number that is the subject of the charge shall be considered sufficient evidence of authorization for that call.

(2) The amount of any administrative penalty imposed under subdivision (1) of this subsection may not exceed $1,000.00 per violation arising out of the same incident or complaint, and must be based on:

(A) the severity of the violation, including the intent of the violator, the nature, circumstances, extent and gravity of any prohibited acts;

(B) the history of previous violations; and

(C) the amount necessary to deter future violations.

(f) Rulemaking. The public service board shall adopt such rules as it deems necessary to implement this section.
Vt. Stat. Ann. tit. 30, § 231a. Registration of billing aggregators. (a) Definitions. As used in this section, unless the context otherwise indicates:

(1) "Bill" means a direct statement of payments due and any other form of notice soliciting payment.

(2) "Billing agent" means a local exchange carrier or other person offering telecommunications service who includes in a bill it sends to a customer a charge for a product or service offered by a service provider.

(3) "Billing aggregator" means any person, other than a service provider, who forwards the charge for a product or service offered by a service provider to a billing agent.

(4) "Service provider" means any person, other than the billing agent, that offers a product or service to a customer, the charge for which appears on the bill of a billing agent.

(5) "Telecommunications carrier" means a company subject to the jurisdiction of the public service board under subdivision 203(5) of this title.

(6) "Unauthorized service" means the provision of any service or product by a service provider that a customer has not authorized, and for which a charge appears on the customer's telephone bill. Charges for collect calls shall be exempt from this section.

(b) Registration requirements. Except as provided in this subsection, no billing aggregator may forward charges for a service or product offered by a service provider to a billing agent for presentation to a customer, unless the billing aggregator is registered with the public service board. A registration properly filed with the public service board takes effect 14 days after the filing date, unless the public service department objects to the registration and provides notice of its objection to the registrant within the 14 days. If the public service department objects to the registration, the registration does not become effective, unless expressly approved by the public service board. The public service board shall offer a person whose registration has been rejected an opportunity for a hearing. A registration, once effective, remains effective until revoked by the public service board or surrendered by the holder. A company that provides telecommunications service in this state

pursuant to a certificate of public good or equivalent authority under this title is not required to be registered under this subsection.

(c) Revocation of registration; notice.

(1) After opportunity for hearing, the public service board may revoke the registration of a billing aggregator who has:

(A) provided false or deceptive information in registering under this section;

(B) knowingly, negligently or repeatedly forwarded a charge to a billing agent for a product or service that the consumer did not authorize;

(C) failed to provide a notice to customers as required by rule or order of the public service board, or otherwise failed to comply with a rule or order of the public service board; or

(D) engaged in any other false or deceptive practices.

(2) Immediately following a revocation of registration under this subsection, the public service board shall provide notice of the revocation, in a form and manner established by the public service board by rule, to all telecommunications carriers doing business in this state.

(d) Procedure upon complaint. If a customer of a telecommunications carrier claims that a charge for an unauthorized service has been included in the customer's telephone bill, the telecommunications carrier shall immediately suspend collection efforts on that portion of the customer's bill. The telecommunications carrier shall either cease collection efforts entirely with regard to the disputed charge or request evidence from the billing aggregator that the customer authorized the service for which payment is sought. If the telecommunications carrier ceases collection efforts or sufficient evidence of customer authorization is not presented to the telecommunications carrier within a reasonable time, the telecommunications carrier shall immediately remove any charges associated with the unauthorized service from the customer's bill and refund to the customer any amounts paid for the unauthorized service that were billed by the telecommunications carrier during the six months prior t

o the customer's complaint. If sufficient evidence of customer authorization is provided to the telecommunications carrier, the telecommunications carrier may restore the charges on the customer's bill and reinstitute collection efforts. The customer or the billing aggregator may appeal the telecommunications carrier's determination to the public service board.

(e) Enforcement authority. In addition to any other authority the public service board may have pursuant to other law, the public service board may enforce the provisions of this section in accordance with this subsection:

(1) In an adjudicatory proceeding, the public service board may impose an administrative penalty upon the following entities for the following violations:

(A) a billing aggregator who forwards charges to a billing agent for an unauthorized product or service;

(B) a billing aggregator who is required to be registered under subsection (b) of this section and who is not properly registered pursuant to that subsection and who forwards charges for a product or service that appear on the bill of a billing agent;

(C) a billing agent who knowingly bills on behalf of a billing aggregator who is required to be registered under subsection (b) of this section and who is not properly registered pursuant to that subsection at the time the bill which is to be sent to the customer is generated, except that a billing agent who bills on behalf of a billing aggregator whose registration has been revoked shall not be subject to administrative penalty if the bill which is to be sent to the customer was generated within 14 days of the revocation of the registration and the billing agent did not have actual notice of the revocation;

(D) a telecommunications carrier that, without having first obtained evidence of authorization that the telecommunications carrier believed in good faith to be sufficient, does not remove the charges for any service which is the subject of a complaint under subsection (d) of this section and does not refund to the customer any amounts paid for the unauthorized service that were billed by the telecommunications carrier during the six months prior to the customer's complaint. For purposes of this section, evidence that a call was dialed from the number that is the subject of the charge shall be considered sufficient evidence of authorization for that call.

(2) The amount of any administrative penalty imposed under subdivision (1) of this subsection may not exceed $1,000.00 per violation arising out of the same incident or complaint, and must be based on:

(A) the severity of the violation, including the intent of the violator, the nature, circumstances, extent and gravity of any prohibited acts;

(B) the history of previous violations; and

(C) the amount necessary to deter future violations.

(f) Rulemaking. The public service board shall adopt such rules as it deems necessary to implement this section.

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Vt. Stat. Ann. tit. 32, § 7786. Gray market cigarettes. (a) No person shall affix a cigarette stamp to or sell or offer for sale in this state any package or container of cigarettes if:

(1) the container or package does not comply with all the requirements of the federal Cigarette Labeling and Advertising Act (15 U.S.C. § 1331 et seq.) for the placement of labels, warnings, or any other information upon a package of cigarettes that is to be sold within the United States;

(2) the container or package has been imported into the United States after January 1, 2000, in violation of 26 U.S.C. § 5754;

(3) the container or package, including a container of individually-stamped containers or packages is labeled "For Export Only," "U.S. Tax Exempt," "For Use Outside U.S.," or similar wording indicating that the manufacturer did not intend that the product be sold in the United States; or

(4) the container or package has been altered by marking or deleting the wording described in subdivision (3) of this subsection.

(b) Any cigarettes described in subdivisions (a)(1), (2), (3) or (4) of this section and found in this state are declared to be contraband goods and may be seized without a warrant by the commissioner, the commissioner's agents or employees, or by any peace officer of this state when directed by the commissioner to do so, unless the owner of the cigarettes produces sufficient evidence that the cigarettes are in transit through the state for sale outside the United States. Nothing herein shall be construed to require the commissioner to confiscate cigarettes when the commissioner shall have reason to believe that the owner thereof has possession of the same for personal consumption. Any cigarettes seized under this section shall be destroyed by the commissioner. The seizure of any cigarettes under the provisions of this section shall not relieve any person from a fine or other penalty for violation of this chapter.

(c) A violation of any provision of this section shall also constitute an unfair or deceptive act and practice in commerce prohibited under section 2453 of Title 9, and shall be subject to enforcement and to the rights and remedies provided for under chapter 63 of Title 9.

(d) Any person may bring an action for appropriate injunctive or other equitable relief for a violation of this section; actual damages, if any, sustained by reason of the violation; and, as determined by the court, interest on the damages from the date of the complaint, taxable costs and reasonable attorney's fees. If the trier of fact finds that the violation is flagrant, it may increase recovery to any amount not in excess of three times the actual damages sustained by reason of the violation.
Vt. Stat. Ann. tit. 32, § 7786. Gray market cigarettes. (a) No person shall affix a cigarette stamp to or sell or offer for sale in this state any package or container of cigarettes if:

(1) the container or package does not comply with all the requirements of the federal Cigarette Labeling and Advertising Act (15 U.S.C. § 1331 et seq.) for the placement of labels, warnings, or any other information upon a package of cigarettes that is to be sold within the United States;

(2) the container or package has been imported into the United States after January 1, 2000, in violation of 26 U.S.C. § 5754;

(3) the container or package, including a container of individually-stamped containers or packages is labeled "For Export Only," "U.S. Tax Exempt," "For Use Outside U.S.," or similar wording indicating that the manufacturer did not intend that the product be sold in the United States; or

(4) the container or package has been altered by marking or deleting the wording described in subdivision (3) of this subsection.

(b) Any cigarettes described in subdivisions (a)(1), (2), (3) or (4) of this section and found in this state are declared to be contraband goods and may be seized without a warrant by the commissioner, the commissioner's agents or employees, or by any peace officer of this state when directed by the commissioner to do so, unless the owner of the cigarettes produces sufficient evidence that the cigarettes are in transit through the state for sale outside the United States. Nothing herein shall be construed to require the commissioner to confiscate cigarettes when the commissioner shall have reason to believe that the owner thereof has possession of the same for personal consumption. Any cigarettes seized under this section shall be destroyed by the commissioner. The seizure of any cigarettes under the provisions of this section shall not relieve any person from a fine or other penalty for violation of this chapter.

(c) A violation of any provision of this section shall also constitute an unfair or deceptive act and practice in commerce prohibited under section 2453 of Title 9, and shall be subject to enforcement and to the rights and remedies provided for under chapter 63 of Title 9.

(d) Any person may bring an action for appropriate injunctive or other equitable relief for a violation of this section; actual damages, if any, sustained by reason of the violation; and, as determined by the court, interest on the damages from the date of the complaint, taxable costs and reasonable attorney's fees. If the trier of fact finds that the violation is flagrant, it may increase recovery to any amount not in excess of three times the actual damages sustained by reason of the violation.

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Vt. Stat. Ann. tit. 33, § 1923. Penalties and other remedies.(a) In addition to or in lieu of any other civil or criminal remedy provided by law, upon a determination that a stamping agent has violated this subchapter or any regulation adopted pursuant thereto, the attorney general may, for each violation of this subchapter, also impose a civil penalty in an amount not to exceed the greater of 500 percent of the retail value of the cigarettes sold, offered for sale, or possessed for sale in violation of this subchapter or $5,000.00. Each stamp affixed and each sale or offer to sell cigarettes in violation of section 1919 of this subchapter shall constitute a separate violation.

(b) The attorney general may seek an injunction to restrain a threatened or actual violation of this subchapter by a stamping agent and to compel the stamping agent to comply with the provisions of this subchapter. In any action brought pursuant to this section, the state shall be entitled to recover the costs of investigation, expert witness fees, costs of the action, and reasonable attorney's fees.

(c) It shall be unlawful for a person to:

(1) sell or distribute cigarettes that the person knows or should know are intended for distribution or sale in the state in violation of this subchapter; or

(2) acquire, hold, own, possess, transport, import, or cause to be imported cigarettes that the person knows or should know are intended for distribution or sale in the state in violation of this subchapter. A violation of this section shall be a misdemeanor punishable by imprisonment for not more than one year and a fine of not more than $5,000.00, or both.

(d) A person who violates section 1919 of this title engages in an unfair and deceptive trade practice in violation of the state's Consumer Fraud Act, 9 V.S.A. § 2451 et seq.

(e) If a court determines that a person has violated the provisions of this subchapter, the court shall order any profits, gain, gross receipts, or other benefit from the violation to be disgorged and paid to the state treasurer for deposit in the tobacco litigation settlement fund established pursuant to 32 V.S.A. § 435a.

(f) Unless otherwise expressly provided, the penalties or remedies, or both, provided by this subchapter are cumulative to each other and to the penalties or remedies, or both, available under all other laws of this state.
Vt. Stat. Ann. tit. 33, § 1923. Penalties and other remedies.(a) In addition to or in lieu of any other civil or criminal remedy provided by law, upon a determination that a stamping agent has violated this subchapter or any regulation adopted pursuant thereto, the attorney general may, for each violation of this subchapter, also impose a civil penalty in an amount not to exceed the greater of 500 percent of the retail value of the cigarettes sold, offered for sale, or possessed for sale in violation of this subchapter or $5,000.00. Each stamp affixed and each sale or offer to sell cigarettes in violation of section 1919 of this subchapter shall constitute a separate violation.

(b) The attorney general may seek an injunction to restrain a threatened or actual violation of this subchapter by a stamping agent and to compel the stamping agent to comply with the provisions of this subchapter. In any action brought pursuant to this section, the state shall be entitled to recover the costs of investigation, expert witness fees, costs of the action, and reasonable attorney's fees.

(c) It shall be unlawful for a person to:

(1) sell or distribute cigarettes that the person knows or should know are intended for distribution or sale in the state in violation of this subchapter; or

(2) acquire, hold, own, possess, transport, import, or cause to be imported cigarettes that the person knows or should know are intended for distribution or sale in the state in violation of this subchapter. A violation of this section shall be a misdemeanor punishable by imprisonment for not more than one year and a fine of not more than $5,000.00, or both.

(d) A person who violates section 1919 of this title engages in an unfair and deceptive trade practice in violation of the state's Consumer Fraud Act, 9 V.S.A. § 2451 et seq.

(e) If a court determines that a person has violated the provisions of this subchapter, the court shall order any profits, gain, gross receipts, or other benefit from the violation to be disgorged and paid to the state treasurer for deposit in the tobacco litigation settlement fund established pursuant to 32 V.S.A. § 435a.

(f) Unless otherwise expressly provided, the penalties or remedies, or both, provided by this subchapter are cumulative to each other and to the penalties or remedies, or both, available under all other laws of this state.

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Vt. Stat. Ann. tit. 33, § 1999. Consumer protection rules; prior authorization.(a)(1) The pharmacy best practices and cost control program shall authorize pharmacy benefit coverage when a patient's health care provider prescribes a prescription drug not on the preferred drug list, or a prescription drug which is not the list's preferred choice, if either of the circumstances set forth in subdivision (2) or (3) of this subsection applies.

(2)(A) The program shall authorize coverage under the same terms as coverage for preferred choice drugs if the prescriber determines, after consultation with the pharmacist, or with the participating health benefit plan if required by the terms of the plan, that:

(i) the preferred choice has not been effective, or with reasonable certainty is not expected to be effective, in treating the patient's condition; or

(ii) the preferred choice causes or is reasonably expected to cause adverse or harmful reactions in the patient.

(B) The prescriber's determination concerning whether the standards established in this subdivision (2) have been demonstrated shall be final if any documentation required at the direction of the drug utilization board has been provided.

(3) The program shall authorize coverage if the patient agrees to pay any additional cost in excess of the benefits provided by the patient's health benefit plan which is participating in the program. The provisions of this subdivision (3) shall not apply to the extent that they may be inconsistent with any federal Medicaid laws and regulations. The provisions of this subdivision (3) shall not affect implementation by a participating health benefit plan of tiered copayments or other similar cost sharing systems.

(b) The program or any participating health benefit plan shall provide information on how prescribers, pharmacists, beneficiaries, and other interested parties can obtain a copy of the preferred drug list, whether any change has been made to the preferred drug list since it was last issued, and the process by which exceptions to the preferred list may be made.

(c) For HIV and AIDS-related medications used by individuals with HIV or AIDS, the preferred drug list and any utilization review procedures shall not be more restrictive than the drug list and the application of the list used for the state of Vermont AIDS medication assistance program.

(d) The agency may include prescription drugs prescribed for the treatment of severe and persistent mental illness, including schizophrenia, major depression, or bipolar disorder, in the prior authorization process after the health access oversight committee has reviewed the report as provided for in Sec. 305(a)(2)(A) of No. 71 of the Acts of 2005.

(e)(1) The prior authorization process shall be designed to minimize administrative burdens on prescribers, pharmacists, and consumers. The provisions of this section shall apply to the program's prior authorization process, except to the extent that different prior authorization rules are established in section 2004 of this title.

(2) The prior authorization process shall ensure real-time receipt of requests, by telephone, voice mail, facsimile, electronic transmission, or mail on a 24-hour basis, seven days a week.

(3) The prior authorization process shall provide an in-person response to emergency requests by a prescriber with telephone answering queues that do not exceed 10 minutes.

(4) Any request for authorization or approval of a drug that the prescriber indicates, including the clinical reasons for the request, is for an emergency or urgent condition shall be responded to in no more than four hours from the time the program or participating health benefit plan receives the request.

(5) In emergency circumstances, or if the response to a request for prior authorization is not provided within the time period established in subdivision (4) of this subsection, a 72-hour supply of the drug prescribed shall be deemed to be authorized by the program or the participating health benefit plan, provided it is a prescription drug approved by the Food and Drug Administration, and provided, for drugs dispensed to a Medicaid beneficiary, it is subject to a rebate agreement with the Centers for Medicare and Medicaid Services.

(6) The program or participating plan shall provide to participating providers a prior authorization request form for each enrolled beneficiary, known to be a patient of the provider, designed to permit the prescriber to make prior authorization requests in advance of the need to fill the prescription, and designed to be completed without unnecessary delay. The form shall be capable of being stamped with information relating to the participating provider, and if feasible at least one form capable of being copied shall contain known patient information.

(f) The program's prior authorization process shall require that the prescriber, not the pharmacy, request a prior authorization exemption to the requirements of this section. No later than December 31, 2004, the commissioner shall create a pilot program designed to exempt a prescriber from the prior authorization requirement of the preferred drug list program if the program determines that the prescriber has met compliance standards established by the department in consultation with the drug utilization review board. This exemption does not apply to drugs that require prior authorization for clinical reasons.
Vt. Stat. Ann. tit. 33, § 1999. Consumer protection rules; prior authorization.(a)(1) The pharmacy best practices and cost control program shall authorize pharmacy benefit coverage when a patient's health care provider prescribes a prescription drug not on the preferred drug list, or a prescription drug which is not the list's preferred choice, if either of the circumstances set forth in subdivision (2) or (3) of this subsection applies.

(2)(A) The program shall authorize coverage under the same terms as coverage for preferred choice drugs if the prescriber determines, after consultation with the pharmacist, or with the participating health benefit plan if required by the terms of the plan, that:

(i) the preferred choice has not been effective, or with reasonable certainty is not expected to be effective, in treating the patient's condition; or

(ii) the preferred choice causes or is reasonably expected to cause adverse or harmful reactions in the patient.

(B) The prescriber's determination concerning whether the standards established in this subdivision (2) have been demonstrated shall be final if any documentation required at the direction of the drug utilization board has been provided.

(3) The program shall authorize coverage if the patient agrees to pay any additional cost in excess of the benefits provided by the patient's health benefit plan which is participating in the program. The provisions of this subdivision (3) shall not apply to the extent that they may be inconsistent with any federal Medicaid laws and regulations. The provisions of this subdivision (3) shall not affect implementation by a participating health benefit plan of tiered copayments or other similar cost sharing systems.

(b) The program or any participating health benefit plan shall provide information on how prescribers, pharmacists, beneficiaries, and other interested parties can obtain a copy of the preferred drug list, whether any change has been made to the preferred drug list since it was last issued, and the process by which exceptions to the preferred list may be made.

(c) For HIV and AIDS-related medications used by individuals with HIV or AIDS, the preferred drug list and any utilization review procedures shall not be more restrictive than the drug list and the application of the list used for the state of Vermont AIDS medication assistance program.

(d) The agency may include prescription drugs prescribed for the treatment of severe and persistent mental illness, including schizophrenia, major depression, or bipolar disorder, in the prior authorization process after the health access oversight committee has reviewed the report as provided for in Sec. 305(a)(2)(A) of No. 71 of the Acts of 2005.

(e)(1) The prior authorization process shall be designed to minimize administrative burdens on prescribers, pharmacists, and consumers. The provisions of this section shall apply to the program's prior authorization process, except to the extent that different prior authorization rules are established in section 2004 of this title.

(2) The prior authorization process shall ensure real-time receipt of requests, by telephone, voice mail, facsimile, electronic transmission, or mail on a 24-hour basis, seven days a week.

(3) The prior authorization process shall provide an in-person response to emergency requests by a prescriber with telephone answering queues that do not exceed 10 minutes.

(4) Any request for authorization or approval of a drug that the prescriber indicates, including the clinical reasons for the request, is for an emergency or urgent condition shall be responded to in no more than four hours from the time the program or participating health benefit plan receives the request.

(5) In emergency circumstances, or if the response to a request for prior authorization is not provided within the time period established in subdivision (4) of this subsection, a 72-hour supply of the drug prescribed shall be deemed to be authorized by the program or the participating health benefit plan, provided it is a prescription drug approved by the Food and Drug Administration, and provided, for drugs dispensed to a Medicaid beneficiary, it is subject to a rebate agreement with the Centers for Medicare and Medicaid Services.

(6) The program or participating plan shall provide to participating providers a prior authorization request form for each enrolled beneficiary, known to be a patient of the provider, designed to permit the prescriber to make prior authorization requests in advance of the need to fill the prescription, and designed to be completed without unnecessary delay. The form shall be capable of being stamped with information relating to the participating provider, and if feasible at least one form capable of being copied shall contain known patient information.

(f) The program's prior authorization process shall require that the prescriber, not the pharmacy, request a prior authorization exemption to the requirements of this section. No later than December 31, 2004, the commissioner shall create a pilot program designed to exempt a prescriber from the prior authorization requirement of the preferred drug list program if the program determines that the prescriber has met compliance standards established by the department in consultation with the drug utilization review board. This exemption does not apply to drugs that require prior authorization for clinical reasons.

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Vt. Stat. Ann. tit. 33, § 2001. Legislative oversight.(a) In connection with the pharmacy best practices and cost control program, the commissioner of Vermont health access shall report for review by the health access oversight committee, prior to initial implementation, and prior to any subsequent modifications:

(1) the compilation that constitutes the preferred drug list or list of drugs subject to prior authorization or any other utilization review procedures;

(2) any utilization review procedures, including any prior authorization procedures; and

(3) the procedures by which drugs will be identified as preferred on the preferred drug list, and the procedures by which drugs will be selected for prior authorization or any other utilization review procedure.

(b) The health access oversight committee shall closely monitor implementation of the preferred drug list and utilization review procedures to ensure that the consumer protection standards enacted pursuant to section 1999 of this title are not diminished as a result of implementing the preferred drug list and the utilization review procedures, including any unnecessary delay in access to appropriate medications. The committee shall ensure that all affected interests, including consumers, health care providers, pharmacists and others with pharmaceutical expertise have an opportunity to comment on the preferred drug list and procedures reviewed under this subsection.

(c) The commissioner of Vermont health access shall report quarterly to the health access oversight committee concerning the following aspects of the pharmacy best practices and cost control program:

(1) the efforts undertaken to educate health care providers about the preferred drug list and the program's utilization review procedures;

(2) the number of prior authorization requests made; and

(3) the number of utilization review events (other than prior authorization requests).

(d) [Repealed.]

(e)(1) [Repealed.]

(2) The commissioner shall not enter into a contract with a pharmacy benefit manager unless the pharmacy benefit manager has agreed to disclose to the commissioner the terms and the financial impact on Vermont and on Vermont beneficiaries of:

(A) any agreement with a pharmaceutical manufacturer to favor the manufacturer's products over a competitor's products, or to place the manufacturer's drug on the pharmacy benefit manager's preferred list or formulary, or to switch the drug prescribed by the patient's health care provider with a drug agreed to by the pharmacy benefit manager and the manufacturer;

(B) any agreement with a pharmaceutical manufacturer to share manufacturer rebates and discounts with the pharmacy benefit manager, or to pay "soft money" or other economic benefits to the pharmacy benefit manager;

(C) any agreement or practice to bill Vermont health benefit plans for prescription drugs at a cost higher than the pharmacy benefit manager pays the pharmacy;

(D) any agreement to share revenue with a mail order or internet pharmacy company;

(E) any agreement to sell prescription drug data concerning Vermont beneficiaries, or data concerning the prescribing practices of the health care providers of Vermont beneficiaries; or

(F) any other agreement of the pharmacy benefit manager with a pharmaceutical manufacturer, or with wholesale and retail pharmacies, affecting the cost of pharmacy benefits provided to Vermont beneficiaries.

(3) The commissioner shall not enter into a contract with a pharmacy benefit manager who has entered into an agreement or engaged in a practice described in subdivision (2) of this subsection, unless the commissioner determines, and certifies in the fiscal report required by subdivision (d)(4) of this section, that such agreement or practice furthers the financial interests of Vermont, and does not adversely affect the medical interests of Vermont beneficiaries.
Vt. Stat. Ann. tit. 33, § 2001. Legislative oversight.(a) In connection with the pharmacy best practices and cost control program, the commissioner of Vermont health access shall report for review by the health access oversight committee, prior to initial implementation, and prior to any subsequent modifications:

(1) the compilation that constitutes the preferred drug list or list of drugs subject to prior authorization or any other utilization review procedures;

(2) any utilization review procedures, including any prior authorization procedures; and

(3) the procedures by which drugs will be identified as preferred on the preferred drug list, and the procedures by which drugs will be selected for prior authorization or any other utilization review procedure.

(b) The health access oversight committee shall closely monitor implementation of the preferred drug list and utilization review procedures to ensure that the consumer protection standards enacted pursuant to section 1999 of this title are not diminished as a result of implementing the preferred drug list and the utilization review procedures, including any unnecessary delay in access to appropriate medications. The committee shall ensure that all affected interests, including consumers, health care providers, pharmacists and others with pharmaceutical expertise have an opportunity to comment on the preferred drug list and procedures reviewed under this subsection.

(c) The commissioner of Vermont health access shall report quarterly to the health access oversight committee concerning the following aspects of the pharmacy best practices and cost control program:

(1) the efforts undertaken to educate health care providers about the preferred drug list and the program's utilization review procedures;

(2) the number of prior authorization requests made; and

(3) the number of utilization review events (other than prior authorization requests).

(d) [Repealed.]

(e)(1) [Repealed.]

(2) The commissioner shall not enter into a contract with a pharmacy benefit manager unless the pharmacy benefit manager has agreed to disclose to the commissioner the terms and the financial impact on Vermont and on Vermont beneficiaries of:

(A) any agreement with a pharmaceutical manufacturer to favor the manufacturer's products over a competitor's products, or to place the manufacturer's drug on the pharmacy benefit manager's preferred list or formulary, or to switch the drug prescribed by the patient's health care provider with a drug agreed to by the pharmacy benefit manager and the manufacturer;

(B) any agreement with a pharmaceutical manufacturer to share manufacturer rebates and discounts with the pharmacy benefit manager, or to pay "soft money" or other economic benefits to the pharmacy benefit manager;

(C) any agreement or practice to bill Vermont health benefit plans for prescription drugs at a cost higher than the pharmacy benefit manager pays the pharmacy;

(D) any agreement to share revenue with a mail order or internet pharmacy company;

(E) any agreement to sell prescription drug data concerning Vermont beneficiaries, or data concerning the prescribing practices of the health care providers of Vermont beneficiaries; or

(F) any other agreement of the pharmacy benefit manager with a pharmaceutical manufacturer, or with wholesale and retail pharmacies, affecting the cost of pharmacy benefits provided to Vermont beneficiaries.

(3) The commissioner shall not enter into a contract with a pharmacy benefit manager who has entered into an agreement or engaged in a practice described in subdivision (2) of this subsection, unless the commissioner determines, and certifies in the fiscal report required by subdivision (d)(4) of this section, that such agreement or practice furthers the financial interests of Vermont, and does not adversely affect the medical interests of Vermont beneficiaries.

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Vt. Stat. Ann. tit. 33, § 2080. Vermont prescription drug pricing and consumer protection programThe secretary of the agency of human services shall administer this subchapter in conformity with the pharmacy best practices and cost control program established under subchapter 5 of this chapter to enable the citizens of Vermont to purchase necessary prescription pharmaceuticals at the lowest possible price, to ensure access to such pharmaceuticals, and to support Vermont pharmacies, consistent with the time frames, standards, and procedures established by the general assembly. Vt. Stat. Ann. tit. 33, § 2080. Vermont prescription drug pricing and consumer protection programThe secretary of the agency of human services shall administer this subchapter in conformity with the pharmacy best practices and cost control program established under subchapter 5 of this chapter to enable the citizens of Vermont to purchase necessary prescription pharmaceuticals at the lowest possible price, to ensure access to such pharmaceuticals, and to support Vermont pharmacies, consistent with the time frames, standards, and procedures established by the general assembly.

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Vt. Stat. Ann. tit. 33, § 7214. Avoidance of contracts.(a) The court may grant a motion filed by the receiver to avoid a lease, mortgage, secured transaction, or other contract entered into by the owner or licensee of the facility if the court finds that the agreement:

(1) was entered into for a fraudulent purpose or to hinder or delay creditors;

(2) including a rental amount, price, or rate of interest, was unreasonable or excessive at the time the agreement was entered into; or

(3) is unrelated to the operation of the facility.

(b)(1) The receiver shall send notice of the motion to any known owners and mortgage holder of the property, the licensing agency, and the state long-term care ombudsman at the time of filing.

(2) The court shall hold a hearing on the receiver's motion to avoid a contract within 15 days.

(c) If the receiver is in possession of real estate or goods subject to a contract or security interest that the receiver is permitted to avoid under this section and if the real estate or goods are necessary for the continued operation of the facility, the court may set a reasonable rental amount, price, rate of interest, or replacement contract term to be paid by the receiver during the term of the receivership.

(d) Payment by the receiver of the amount determined by the court to be reasonable is a defense to an action against the receiver for payment or for the possession of the subject goods or real estate by a person who received notice.

(e) Notwithstanding this section, there may not be a foreclosure or eviction during the receivership by any person if the forecl
Vt. Stat. Ann. tit. 33, § 7214. Avoidance of contracts.(a) The court may grant a motion filed by the receiver to avoid a lease, mortgage, secured transaction, or other contract entered into by the owner or licensee of the facility if the court finds that the agreement:

(1) was entered into for a fraudulent purpose or to hinder or delay creditors;

(2) including a rental amount, price, or rate of interest, was unreasonable or excessive at the time the agreement was entered into; or

(3) is unrelated to the operation of the facility.

(b)(1) The receiver shall send notice of the motion to any known owners and mortgage holder of the property, the licensing agency, and the state long-term care ombudsman at the time of filing.

(2) The court shall hold a hearing on the receiver's motion to avoid a contract within 15 days.

(c) If the receiver is in possession of real estate or goods subject to a contract or security interest that the receiver is permitted to avoid under this section and if the real estate or goods are necessary for the continued operation of the facility, the court may set a reasonable rental amount, price, rate of interest, or replacement contract term to be paid by the receiver during the term of the receivership.

(d) Payment by the receiver of the amount determined by the court to be reasonable is a defense to an action against the receiver for payment or for the possession of the subject goods or real estate by a person who received notice.

(e) Notwithstanding this section, there may not be a foreclosure or eviction during the receivership by any person if the forecl