The Vermont Statutes Online

Title 8 : Banking and Insurance

Chapter 145 : Supervision, Rehabilitation, and Liquidation of Insurers

Subchapter 004 : INTERSTATE RELATIONS

• § 7097. Claims of residents against insurers domiciled in reciprocal states

  (a) In a liquidation proceeding in a reciprocal state against an insurer domiciled in that state, claimants against the insurer who resides within this State may file claims either with the ancillary receiver, if any, in this State, or with the domiciliary liquidator. Claims must be filed on or before the last dates fixed for the filing of claims in the domiciliary liquidation proceeding.

  (b) Claims belonging to claimants residing in this State may be proved either in the domiciliary state under the law of that state, or in ancillary proceedings, if any, in this State. If a claimant elects to prove his or her claim in this State, the claimant shall file the claim with the liquidator in the manner provided in sections 7074 and 7075 of this title. The ancillary receiver shall make his or her recommendation to the court as provided under section 7082 of this title. The ancillary receiver shall also arrange a date for hearing if necessary under section 7078 of this title and shall give notice to the liquidator in the domiciliary state, either by certified mail or by personal service at least 40 days prior to the date set for hearing. If the domiciliary liquidator, within 30 days after the giving of such notice, gives notice in writing to the ancillary receiver and to the claimant, either by certified mail or by personal service, of his or her intention to contest the claim, the domiciliary liquidator shall be entitled to appear or to be represented in any proceeding in this State involving the adjudication of the claim.

  (c) The final allowance of the claim by the courts of this State shall be accepted as conclusive as to amount and as to priority against special deposits or other security located in this State. (Added 1991, No. 45, § 2, eff. May 29, 1991.)