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Searching 2023-2024 Session

The Vermont Statutes Online


Title 8 : Banking and Insurance



(Cite as: 8 V.S.A. § 4161)
  • § 4161. Duties and powers of the Commissioner

    In addition to the duties and powers enumerated elsewhere in this subchapter,

    (1) The Commissioner shall:

    (A) Notify the Board of Directors of the existence of an impaired or insolvent insurer not later than three days after a determination of impairment or insolvency is made or he or she receives notice of impairment or insolvency.

    (B) Permit the Association to examine such records in his or her office as are necessary to obtain a statement of the premiums in the appropriate states for each member insurer.

    (C) When an impairment or insolvency is declared and the amount of the impairment or insolvency is determined, serve a demand upon the impaired or insolvent insurer to make good the impairment or insolvency within a reasonable time. Notice to the impaired or insolvent insurer shall constitute notice to its shareholders, if any. The failure of the insurer to promptly comply with such demand shall not excuse the Association from the performance of its powers and duties under this subchapter.

    (D) In any liquidation or rehabilitation proceeding involving a domestic insurer, be appointed as the liquidator or rehabilitator. If a foreign or alien member insurer is subject to a liquidation proceeding in its domiciliary jurisdiction or state of entry, the Commissioner shall be appointed conservator.

    (2) The Commissioner may suspend or revoke, after notice and hearing, the certificate of authority to transact insurance in this State of any member insurer which fails to pay an assessment when due or fails to comply with the plan of operation. As an alternative, the Commissioner may levy a forfeiture on any member insurer which fails to pay an assessment when due. Such forfeiture shall not exceed five percent of the unpaid assessment per month, but no forfeiture shall be less than $500.00 per month.

    (3) Any action of the Board of Directors or the Association may be appealed to the Commissioner by any member insurer if such appeal is taken within 30 days of the action being appealed. Any final action or order of the Commissioner shall be subject to judicial review in the Supreme Court.

    (4) The liquidator, rehabilitator, or conservator of any impaired or insolvent insurer may notify all interested persons of the effect of this subchapter. (Added 1971, No. 170 (Adj. Sess.), § 2, eff. April 27, 1972; amended 1995, No. 167 (Adj. Sess.), § 12; 1997, No. 161 (Adj. Sess.), § 7, eff. Jan. 1, 1998; 2009, No. 137 (Adj. Sess.), § 7e, eff. May 29, 2010.)