§4161. Duties and powers of the Commissioner

Link to law: http://legislature.vermont.gov/statutes/section/08/112/04161
Published: 2015

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The Vermont Statutes Online



Title

08

:
Banking and Insurance






Chapter

112

:
LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION






Subchapter

001
:
LIFE AND HEALTH INSURANCE COMPANIES










 

§

4161. Duties and powers of the Commissioner

In addition to

the duties and powers enumerated elsewhere in this subchapter,

(1) The

Commissioner shall:

(A) Notify the

Board of Directors of the existence of an impaired or insolvent insurer not

later than three days after a determination of impairment or insolvency is made

or he or she receives notice of impairment or insolvency.

(B) Permit the

Association to examine such records in his or her office as are necessary to

obtain a statement of the premiums in the appropriate states for each member

insurer.

(C) When an

impairment or insolvency is declared and the amount of the impairment or

insolvency is determined, serve a demand upon the impaired or insolvent insurer

to make good the impairment or insolvency within a reasonable time. Notice to

the impaired or insolvent insurer shall constitute notice to its shareholders,

if any. The failure of the insurer to promptly comply with such demand shall

not excuse the Association from the performance of its powers and duties under

this subchapter.

(D) In any

liquidation or rehabilitation proceeding involving a domestic insurer, be

appointed as the liquidator or rehabilitator. If a foreign or alien member

insurer is subject to a liquidation proceeding in its domiciliary jurisdiction

or state of entry, the Commissioner shall be appointed conservator.

(2) The

Commissioner may suspend or revoke, after notice and hearing, the certificate

of authority to transact insurance in this State of any member insurer which

fails to pay an assessment when due or fails to comply with the plan of

operation. As an alternative, the Commissioner may levy a forfeiture on any

member insurer which fails to pay an assessment when due. Such forfeiture shall

not exceed five percent of the unpaid assessment per month, but no forfeiture

shall be less than $500.00 per month.

(3) Any action

of the Board of Directors or the Association may be appealed to the

Commissioner by any member insurer if such appeal is taken within 30 days of

the action being appealed. Any final action or order of the Commissioner shall

be subject to judicial review in the Supreme Court.

(4) The

liquidator, rehabilitator, or conservator of any impaired or insolvent insurer

may notify all interested persons of the effect of this subchapter. (Added

1971, No. 170 (Adj. Sess.), § 2, eff. April 27, 1972; amended 1995, No. 167

(Adj. Sess.), § 12; 1997, No. 161 (Adj. Sess.), § 7, eff. Jan. 1, 1998; 2009,

No. 137 (Adj. Sess.), § 7e, eff. May 29, 2010.)
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