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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.)