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The Vermont Statutes Online



Title

08

:
Banking and Insurance






Chapter

145

:
SUPERVISION, REHABILITATION, AND LIQUIDATION OF INSURERS






Subchapter

004
:
INTERSTATE RELATIONS










 

§

7092. Liquidation of property of foreign or alien insurers found in this State

(a) If no

domiciliary receiver has been appointed, the Commissioner may apply to the

Superior Court of Washington County by verified petition for an order directing

him or her to liquidate the assets found in this State of a foreign insurer or

an alien insurer not domiciled in this State, on any of the following grounds:

(1) any of the

grounds established in section 7051 or 7056 of this title; or

(2) any of the

grounds established in subdivisions 7091(a)(2) through (4) of this title.

(b) When an

order is sought under subsection (a) of this section, the Court shall cause the

insurer to be given such notice and time to respond thereto as is reasonable

under the circumstances.

(c) If it shall

appear to the Court that the best interests of creditors, policyholders, and

the public require, the Court may issue an order to liquidate 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 the

principal business of the company is located or the town in which its principal

office or place of business 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.

(d) If a

domiciliary liquidator is appointed in a reciprocal state while a liquidation

is proceeding under this section, the liquidator under this section shall

thereafter act as ancillary receiver under section 7094 of this title. If a

domiciliary liquidator is appointed in a nonreciprocal state while a

liquidation is proceeding under this section, the liquidator under this section

may petition the Court for permission to act as ancillary receiver under

section 7094 of this title.

(e) On the same

grounds as are established in subsection (a) of this section, the Commissioner

may petition any appropriate federal district court to be appointed receiver to

liquidate that portion of the insurer's assets and business over which the

Court will exercise jurisdiction, or any lesser part thereof that the

Commissioner deems desirable for the protection of the policyholders and

creditors in this State.

(f) The Court

may order the Commissioner, when he or she has liquidated the assets of a

foreign or alien insurer under this section, to pay claims of residents of this

State against the insurer under such rules as to the liquidation of insurers

under this chapter as are otherwise compatible with the provisions of this

section. (Added 1991, No. 45, § 2, eff. May 29, 1991.)