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The Vermont Statutes Online

 

Title 8 : Banking and Insurance

Chapter 159 : RISK BASED CAPITAL FOR INSURERS

(Cite as: 8 V.S.A. § 8306)
  • § 8306. Mandatory control level event

    (a) A risk based capital report or final adjusted risk based capital report which indicates that the insurer's total adjusted capital is less than its mandatory control level risk based capital shall be a mandatory control level event and subject to the requirements of this section.

    (b) Upon the occurrence of an event described in subsection (a) of this section, the Commissioner shall take such actions as are necessary to place the insurer under regulatory control under chapter 145 of this title. In the event the Commissioner seeks an order under chapter 145 of this title, the mandatory control level event shall be deemed sufficient grounds for issuance of an order, and the Commissioner shall have the rights, powers, and duties with respect to the insurer as are set forth in chapter 145 of this title. In the event the Commissioner takes actions under this subsection pursuant to an adjusted risk based capital report, the insurer shall be entitled to such protections as are afforded to insurers under the provisions of section 7041 of this title pertaining to summary proceedings. Notwithstanding any of the foregoing, the Commissioner may forego action for up to 90 days after the mandatory control level event if he or she finds there is a reasonable expectation that the mandatory control level event will be eliminated within the 90-day period. (Added 1993, No. 235 (Adj. Sess.), § 8, eff. June 21, 1994.)