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The Vermont Statutes Online
Title
08
:
Banking and Insurance
Chapter
159
:
RISK BASED CAPITAL FOR INSURERS
§
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.)