§8306. Mandatory control level event

Link to law: http://legislature.vermont.gov/statutes/section/08/159/08306
Published: 2015

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The Vermont Statutes Online



Banking and Insurance






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.)