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
002
:
SPONSORED CAPTIVE INSURANCE COMPANIES
(Cite as: 8 V.S.A. § 6039)
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§ 6039. Claimant recourse
(a) Consistent with the provisions of this subchapter, a creditor of a sponsored captive
insurance company shall have recourse against the assets attributable to a protected
cell if, and only if it is a creditor of the protected cell. A creditor of a protected
cell shall not be entitled to recourse against the assets attributable to any other
protected cell or to the assets in the sponsored captive insurance company’s general
account.
(b) When a sponsored captive insurance company has an obligation to a creditor arising
from a transaction, or otherwise imposed, with respect to a particular protected cell,
the obligation:
(1) shall extend only to the assets attributable to that protected cell, and the creditor
shall be entitled to recourse only against the assets attributable to that protected
cell; and
(2) shall not extend to the assets of any other protected cell or to the assets in the
sponsored captive insurance company’s general account, and the creditor shall not
be entitled to recourse against the assets attributable to any other protected cell
or to the assets of the sponsored captive insurance company’s general account.
(c) When an obligation of a sponsored captive insurance company relates solely to its
general account, a creditor shall have recourse only against the assets in the general
account.
(d) The establishment of one or more protected cells alone, and without more, shall not
constitute or be deemed to be a fraudulent conveyance, an intent by the sponsored
captive insurance company to defraud creditors, or the carrying out of business by
the sponsored captive insurance company for any other fraudulent purpose. (Added 2015, No. 20, § 8, eff. May 7, 2015.)