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. § 7063)
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§ 7063. Actions by and against liquidator
(a) Upon issuance of an order appointing a liquidator of a domestic insurer or of an alien
insurer domiciled in this State, no action shall be brought against the insurer or
liquidator, whether in this State or elsewhere, nor shall any such existing actions
be maintained or further presented after issuance of such order. The courts of this
State shall give full faith and credit to injunctions against actions against the
liquidator or the company or the continuation of existing actions against the liquidator
or the company, when such injunctions are included in an order to liquidate an insurer
issued pursuant to corresponding provisions in other states. Whenever, in the liquidator’s
judgment, protection of the estate of the insurer necessitates intervention in an
action against the insurer that is pending outside this State, he or she may intervene
in the action. The liquidator may defend any action in which he or she intervenes
under this section at the expense of the estate of the insurer.
(b) The liquidator may, upon or after an order for liquidation, within two years or such
time in addition to two years as applicable law may permit, institute an action or
proceeding on behalf of the estate of the insurer upon any cause of action against
which the period of limitation fixed by applicable law has not expired at the time
of the filing of the petition upon which such order is entered. Where, by agreement,
a period of limitation is fixed for instituting a suit or proceeding upon any claim,
or for filing any claim, proof of claim, proof of loss, demand, notice, or the like,
or where in any proceeding, judicial or otherwise, a period of limitation is fixed,
either in the proceeding or by applicable law, for taking any action, filing any claim
or pleading, or doing any act, and where in any such case the period had not expired
at the date of the filing of the petition; the liquidator may, for the benefit of
the estate, take any such action or do any such act, required of or permitted to the
insurer, within a period of 180 days subsequent to the entry of an order for liquidation,
or within such further period as is shown to the satisfaction of the court not to
be unfairly prejudicial to the other party.
(c) A statute of limitation or defense of laches shall not run with respect to any action
against an insurer between the filing of a petition for liquidation against an insurer
and the denial of the petition. An action against the insurer that might have been
commenced when the petition was filed may be commenced for at least 60 days after
the petition is denied. (Added 1991, No. 45, § 2, eff. May 29, 1991.)