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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










 

§

7053. Powers and duties of the rehabilitator

(a) The

Commissioner as rehabilitator may appoint one or more special deputies, who

shall have all the powers and responsibilities of the rehabilitator granted

under this section, and the Commissioner may employ such counsel, clerks,

assistants, and other personnel as deemed necessary. The compensation of the

special deputy, counsel, clerks, and assistants and all expenses of taking

possession of the insurer and of conducting the proceedings shall be fixed by

the Commissioner, with the approval of the Court and shall be paid out of the

funds or assets of the insurer. The persons appointed under this section shall

serve at the pleasure of the Commissioner. In the event that the property of

the insurer does not contain sufficient cash or liquid assets to defray the

administrative costs incurred, the Commissioner may advance the costs so

incurred out of any appropriation for the maintenance of the Department.

Amounts so advanced for expenses of administration shall be repaid to the

Commissioner for the use of the Department out of the first available money of

the insurer.

(b) The

rehabilitator may take such action as he or she deems necessary or appropriate

to reform and revitalize the insurer. He or she shall have all the powers of

the directors, officers, and managers, whose authority shall be suspended,

except as they are redelegated by the rehabilitator. He or she shall have full

power to direct and manage, to hire and discharge employees subject to any contract

rights they may have, and to deal with the property and business of the

insurer.

(c) If it

appears to the rehabilitator that there has been criminal or tortious conduct,

or breach of any contractual or fiduciary obligation detrimental to the insurer

by any officer, manager, agent, broker, employee, or other person, he or she

may pursue all appropriate legal remedies on behalf of the insurer.

(d) If the

rehabilitator determines that reorganization, consolidation, conversion,

reinsurance, merger, or other transformation of the insurer is appropriate, he

or she shall prepare a plan to effect such changes. Upon application of the

rehabilitator for approval of the plan, and after such notice and hearings as

the Court may prescribe, the Court may either approve or disapprove the plan

proposed, or may modify it and approve it as modified. A plan approved under

this subsection shall be, in the judgment of the Court, fair and equitable to

all parties concerned. If the plan is approved, the rehabilitator shall carry

out the plan. In the case of a life insurer, the plan proposed may include the

imposition of liens upon the policies of the company, if all rights of

shareholders are first relinquished. A plan for a life insurer may also propose

imposition of a moratorium upon loan and cash surrender rights under policies,

for such period and to such an extent as may be necessary.

(e) The

rehabilitator shall have the power under sections 7065 and 7066 of this title

to avoid fraudulent transfers. (Added 1991, No. 45, § 2, eff. May 29, 1991.)