§6039. Claimant recourse

Link to law: http://legislature.vermont.gov/statutes/section/08/141/06039
Published: 2015

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The Vermont Statutes Online



Title

08

:
Banking and Insurance






Chapter

141

:
CAPTIVE INSURANCE COMPANIES






Subchapter

002
:
SPONSORED CAPTIVE INSURANCE COMPANIES










 

§

6039. Claimant recourse

(a) Consistent

with the provisions of this subchapter, a creditor of a sponsored captive

insurance company shall have recourse against the assets attributable to a

protected cell if, and only if it is a creditor of the protected cell. A

creditor of a protected cell shall not be entitled to recourse against the

assets attributable to any other protected cell or to the assets in the

sponsored captive insurance company's general account.

(b) When a

sponsored captive insurance company has an obligation to a creditor arising

from a transaction, or otherwise imposed, with respect to a particular

protected cell, the obligation:

(1) shall extend

only to the assets attributable to that protected cell, and the creditor shall

be entitled to recourse only against the assets attributable to that protected

cell; and

(2) shall not

extend to the assets of any other protected cell or to the assets in the

sponsored captive insurance company's general account, and the creditor shall

not be entitled to recourse against the assets attributable to any other

protected cell or to the assets of the sponsored captive insurance company's

general account.

(c) When an

obligation of a sponsored captive insurance company relates solely to its

general account, a creditor shall have recourse only against the assets in the

general account.

(d) The

establishment of one or more protected cells alone, and without more, shall not

constitute or be deemed to be a fraudulent conveyance, an intent by the

sponsored captive insurance company to defraud creditors, or the carrying out

of business by the sponsored captive insurance company for any other fraudulent

purpose. (Added 2015, No. 20, § 8, eff. May 7, 2015.)
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