The Vermont Statutes Online

Title 8 : Banking and Insurance

Chapter 147 : Legacy Insurance Transfers

• § 7114. Order

  (a) Within 30 days of the date the hearing is held on the plan, the Commissioner shall issue an order setting forth the amount of fees payable by the assuming company under subdivision 7116(a)(2) of this chapter, payable not later than 14 days after the date of such order. Upon receipt of such payment, the Commissioner shall within five days issue an order approving or disapproving the plan in whole or in part. Whenever it is not practicable to issue an order within 30 days, the Commissioner may extend such time up to an additional 30 days. If the order approves the plan, the order shall:

  (1) include the terms and conditions of the Commissioner’s oversight with regard to ongoing oversight of the operations, management, and solvency relating to the closed block and any specific standards that the assuming company will be required to comply with, including standards relating to:

  (A) material transactions with affiliates;

  (B) adequacy of surplus; and

  (C) dividends and other distributions, including limitations on dividends;

  (2) set forth the tax payable by the assuming company under subsection 7116(b) of this chapter, which tax shall be payable not later than 14 days after the date of such order;

  (3) not be effective until such time as the costs and transfer tax described in this subsection have been paid in full.

  (b) The Commissioner shall not approve a plan unless the Commissioner finds that the assuming company has:

  (1) sufficient assets to meet its liabilities;

  (2) sufficient procedures in place for the handling of claims;

  (3) consented to sufficient regulatory oversight by the Department; and

  (4) excluded from the plan any policy or agreement required to be excluded under subsections 7112(j) and (l) of this chapter.

  (c) An order issued under subsection (a) of this section approving the plan shall have the full force and effect of a statutory novation with respect to all policyholders and reinsurance counterparties and their respective policies and reinsurance agreements under the plan and shall provide that the transferring insurer shall have no further rights, obligations, or liabilities with respect to such policies and reinsurance agreements, and that the assuming company shall have all such rights, obligations, and liabilities as if it, instead of the transferring insurer, were the original party to such policies and reinsurance agreements.

  (d) The Commissioner may issue any other orders he or she reasonably deems necessary to fully implement an order issued under subsection (a) of this section.

  (e) No order issued under subsection (a) or (d) of this section shall be construed to modify or amend the terms of a policy or reinsurance agreement, other than with respect to matters specifically subject to modification or amendment under this chapter.

  (f) If a policyholder or inward reinsurance counterparty provides express written notice that he or she objects to the plan after the comment period has expired, and provides evidence reasonably satisfactory to the Commissioner that he or she was not provided notice of the plan in the form and manner previously approved by the Commissioner, or if an outward reinsurance counterparty or other party provides express written notice that he or she objects to a plan, the Commissioner may not approve the plan with respect to such party unless the Commissioner determines that the plan:

  (1) does not materially adversely affect the objecting party; and

  (2) otherwise complies with the requirements of this chapter.

  (g) At any time before the Commissioner issues the order described in subsection (a) of this section, the assuming company may file an amendment to the plan, subject to the Commissioner’s approval.

  (h) At any time before the Commissioner issues the order described in subsection (a) of this section, the assuming company may withdraw the plan without prejudice. Upon such withdrawal, however, the Commissioner shall issue an order setting forth the amount of fees payable by the assuming company under subdivision 7116(a)(2) of this chapter, payable not later than 14 days after the date of such order. (Added 2013, No. 93 (Adj. Sess.), § 3, eff. Feb. 19, 2014.)