Print

The Vermont Statutes Online



Title

08

:
Banking and Insurance






Chapter

145

:
SUPERVISION, REHABILITATION, AND LIQUIDATION OF INSURERS






Subchapter

004
:
INTERSTATE RELATIONS










 

§

7094. Ancillary formal proceedings

(a) If a

domiciliary liquidator has been appointed for an insurer not domiciled in this

State, the Commissioner may file a petition with the Superior Court of

Washington County requesting appointment as ancillary receiver in this State if

the Commissioner finds that:

(1) there are

sufficient assets of the insurer located in this State to justify the

appointment of an ancillary receiver; or

(2) the

protection of creditors or policyholders in this State so requires.

(b) The Court

may issue an order appointing an ancillary receiver in whatever terms it shall

deem appropriate. The filing or recording of the order with the Superior Court

of Washington County or the town clerk of the town in which its principal

office or place of business is located; or, in the case of real estate, with

the town clerk of the town where the property is located, shall impart the same

notice as a deed, bill of sale, or other evidence of title duly filed or

recorded with that town clerk would have imparted.

(c) When a

domiciliary liquidator has been appointed in a reciprocal state, then the

ancillary receiver appointed in this State may, whenever necessary, aid and

assist the domiciliary liquidator in recovering assets of the insurer located

in this State. The ancillary receivers shall, as soon as practicable, liquidate

from their respective securities those special deposit claims and secured

claims which are proved and allowed in the ancillary proceedings in this State,

and shall pay the necessary expenses of the proceedings. The ancillary receiver

shall promptly transfer all remaining assets, books, accounts, and records to

the domiciliary liquidator. Subject to this section, the ancillary receiver and

his or her deputies shall have the same powers and be subject to the same

duties with respect to the administration of assets as a liquidator of an

insurer domiciled in this State.

(d) When a

domiciliary liquidator has been appointed in this State, ancillary receivers

appointed in reciprocal states shall have, as to assets and books, accounts,

and other records in their respective states, corresponding rights, duties, and

powers to those provided in subsection (c) of this section for ancillary

receivers appointed in this State. (Added 1991, No. 45, § 2, eff. May 29,

1991.)