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
003
:
FORMAL PROCEEDINGS
(Cite as: 8 V.S.A. § 7055)
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§ 7055. Termination of rehabilitation
(a) Whenever the Commissioner believes further attempts to rehabilitate an insurer would
substantially increase the risk of loss to creditors, policyholders, or the public,
or would be futile, the Commissioner may petition the Superior Court of Washington
County for an order of liquidation. A petition under this subsection shall have the
same effect as a petition under section 7056 of this title. The court shall permit the directors of the insurer to take such actions as are
reasonably necessary to defend against the petition but may order payment from the
estate of the insurer of costs and other expenses of defense only if the directors
make a showing to the satisfaction of the court that they incurred such expenses in
good faith and with a reasonable belief that they would prevail.
(b) The protection of the interests of insureds, claimants, and the public requires the
timely performance of all insurance policy obligations. If the payment of policy
obligations is suspended in substantial part for a period of six months at any time
after the appointment of the rehabilitator and the rehabilitator has not filed an
application for approval of a plan under subsection 7053(d) of this title, the rehabilitator shall petition the court for an order of liquidation on grounds
of insolvency.
(c) The rehabilitator may at any time petition the Superior Court of Washington County
for an order terminating rehabilitation of an insurer. The court shall also permit
the directors of the insurer to petition the court for an order terminating rehabilitation
of the insurer and may order payment from the estate of the insurer of such costs
and other expenses of such petition only if the directors make a showing to the satisfaction
of the court that they incurred such expenses in good faith and with a reasonable
belief that they would prevail. If the court upon a petition or upon its own motion
finds that rehabilitation has been accomplished and that grounds for rehabilitation
under section 7051 of this title no longer exist, it shall order that the insurer be restored to possession of its
property and the control of the business. (Added 1991, No. 45, § 2, eff. May 29, 1991.)