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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










 

§

7071. Reinsurer's liability

The amount

recoverable by the liquidator from reinsurers shall not be reduced as a result

of the delinquency proceedings, regardless of any provision in the reinsurance

contract or other agreement. Payment made directly to an insured or other

creditor shall not diminish the reinsurer's obligation to the insurer's estate

except when the reinsurance contract provided for direct coverage of a named

insured and the payment was made in discharge of that obligation. (Added 1991,

No. 45, § 2, eff. May 29, 1991.)