The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
Subchapter
009
:
PROPERTY AND CASUALTY INSURANCE GUARANTY ASSOCIATION
(Cite as: 8 V.S.A. § 3620)
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§ 3620. Prevention of insolvencies
To aid in the detection and prevention of insurer insolvencies:
(1) It shall be the duty of the Board of Directors, upon majority vote, to notify the
Commissioner of any information indicating any member insurer may be insolvent or
in a financial condition hazardous to the policyholders or the public.
(2) The Board of Directors may, upon majority vote, request that the Commissioner order
an examination of any member insurer that the Board in good faith believes may be
in a financial condition hazardous to the policyholders or the public. Within 30 days
of the receipt of such request, the Commissioner shall begin such examination. The
examination may be conducted as a National Association of Insurance Commissioners
examination or may be conducted by such persons as the Commissioner designates. The
cost of such examination shall be paid by the Association and the examination report
shall be treated as are other examination reports. In no event shall such examination
report be released to the Board of Directors prior to its release to the public, but
this shall not preclude the Commissioner from complying with subdivision (3) of this
section. The Commissioner shall notify the Board of Directors when the examination
is completed. The request for an examination shall be kept on file by the Commissioner
but it shall not be open to public inspection prior to the release of the examination
report to the public.
(3) It shall be the duty of the Commissioner to report to the Board of Directors when
he or she has reasonable cause to believe that any member insurer examined or being
examined at the request of the Board of Directors may be insolvent or in a financial
condition hazardous to the policyholders or the public.
(4) The Board of Directors may, upon majority vote, make reports and recommendations to
the Commissioner upon any matter germane to the solvency, liquidation, rehabilitation,
or conservation of any member insurer. Such reports and recommendations shall not
be considered public documents.
(5) The Board of Directors may, upon majority vote, make recommendations to the Commissioner
for the detection and prevention of insurer insolvencies.
(6) The Board of Directors shall, at the conclusion of any insurer insolvency in which
the Association was obligated to pay covered claims, prepare a report on the history
and causes of such insolvency, based on the information available to the Association,
and submit such report to the Commissioner. (Added 1969, No. 279 (Adj. Sess.), § 12.)