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Searching 2018 Special Session

The Vermont Statutes Online

Title 8 : Banking and Insurance

Chapter 145 : SUPERVISION, REHABILITATION, AND LIQUIDATION OF INSURERS

Subchapter 002 : SUMMARY PROCEEDINGS

(Cite as: 8 V.S.A. § 7042)
  • § 7042. Court's seizure order

    (a) The Commissioner may file in the Superior Court of Washington County a petition alleging, with respect to a domestic insurer:

    (1) that there exist grounds that would justify a court order for a formal delinquency proceeding against an insurer under this chapter;

    (2) that the interests of policyholders, creditors, or the public will be endangered by delay; and

    (3) the contents of an order deemed necessary by the Commissioner.

    (b) Upon filing a petition under subsection (a) of this section, the Court may issue forthwith, ex parte and without a hearing, an order directing the Commissioner to take possession and control of all or a part of the property, books, accounts, documents, and other records of an insurer, and of the premises occupied by it for transaction of its business; and enjoining the insurer and its officers, managers, agents, and employees from disposing of its property and from transacting its business except with the written consent of the Commissioner.

    (c) The Court shall specify in the order issued under subsection (b) of this section its duration, which shall be such time as the Court deems necessary for the Commissioner to ascertain the condition of the insurer. On motion of either party or on its own motion, the Court may from time to time hold such hearings as it deems desirable after such notice as it deems appropriate, and may extend, shorten, or modify the terms of the seizure order. The Court shall vacate the seizure order if the Commissioner fails to commence a formal proceeding under this chapter after having had a reasonable opportunity to do so. An order of the Court pursuant to a formal proceeding under this chapter shall vacate the seizure order.

    (d) Entry of a seizure order under this section shall not constitute an anticipatory breach of any contract of the insurer.

    (e) An insurer subject to an ex parte order under this section may petition the Court at any time after the issuance of the order for a hearing and review of the order. The Court shall hold a hearing and review the order not more than 30 days after the request. A hearing under this subsection may be held privately in chambers and it shall be so held if the insurer proceeded against so requests.

    (f) If, at any time after the issuance of such an order, it appears to the Court that a person whose interest is or will be substantially affected by the order did not appear at the hearing and has not been served, the Court may order that notice be given. An order that notice be given shall not stay the effect of any order previously issued by the Court. (Added 1991, No. 45, § 2, eff. May 29, 1991.)