§3503. Deposits of domestic insurer doing foreign business

Link to law: http://legislature.vermont.gov/statutes/section/08/101/03503
Published: 2015

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The Vermont Statutes Online



Title

08

:
Banking and Insurance






Chapter

101

:
INSURANCE COMPANIES GENERALLY






Subchapter

005
:
RESERVES; DEPOSITS; PENSIONS










 

§

3503. Deposits of domestic insurer doing foreign business

(a) A domestic

insurer may deposit with the treasurer of this state or with the comptroller or

chief financial officer of another state or country funds or securities of the

insurer which the laws of such state or country require to enable such insurer

to establish agencies or prosecute the business of insurance within such state

or country. The treasurer of this state shall safely keep such securities so

deposited with him or her for the benefit of the policyholders of the insurer,

but it may receive interest or dividends from the securities, or exchange them

for others of equal value.

(b) If such

insurer discontinues doing business in such other states or countries, it may

at any time bring an action in the superior court against the State of Vermont,

provided such deposit is made with the treasurer of this state, to enforce,

administer or terminate the trust created by such deposit. The process in such

action shall be served on the state treasurer and the commissioner, who shall

appear and answer on behalf of the state. On proof by such company that it has

paid or made sufficient provision for the payment of all liabilities arising

from business written or transacted in such other states and countries, the

court may make such orders and decrees for the payment or return of such funds

or securities, or any part thereof, as shall protect the rights of all

interested parties and the state treasurer shall comply therewith. (1967, No.

344 (Adj. Sess.), § 1 (ch. 1, subch. 7, § 1).)
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