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The Vermont Statutes Online



Title

08

:
Banking and Insurance






Chapter

145

:
SUPERVISION, REHABILITATION, AND LIQUIDATION OF INSURERS






Subchapter

003
:
FORMAL PROCEEDINGS










 

§

7052. Rehabilitation orders

(a) An order to

rehabilitate the business of a domestic insurer, or an alien insurer domiciled

in this State, shall appoint the Commissioner and his or her successors in

office the rehabilitator, and shall direct the rehabilitator forthwith to take

possession of the assets of the insurer, and to administer them under the

general supervision of the Court. The filing or recording of the order with the

Clerk of the Superior Court of Washington County or town clerk of the town in

which the principal business of the company is conducted, or the town in which

its principal office or place of business is located, shall impart the same

notice as a deed, bill of sale, or other evidence of title duly filed or

recorded with that town clerk would have imparted. The order to rehabilitate

the insurer shall by operation of law vest title to all assets of the insurer

in the rehabilitator.

(b) Any order

issued under this section shall require accounting to the Court by the

rehabilitator. Accountings shall be at such intervals as the Court specifies in

this order, but no less frequently than semiannually. Each accounting shall

include a report concerning the rehabilitator's opinion as to the likelihood

that a plan under subsection 7053(d) of this title will be prepared by the

rehabilitator and the timetable for doing so.

(c) Entry of an

order of rehabilitation shall not constitute an anticipatory breach of any

contracts of the insurer nor shall it be grounds for retroactive revocation or

retroactive cancellation of any contracts of the insurer, unless such

revocation or cancellation is done by the rehabilitator pursuant to section

7053 of this chapter. (Added 1991, No. 45, § 2, eff. May 29, 1991.)