§8305. Authorized control level event

Link to law: http://legislature.vermont.gov/statutes/section/08/159/08305
Published: 2015

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The Vermont Statutes Online



Banking and Insurance






8305. Authorized control level event

(a) The

following are deemed to be authorized control level events and subject to the

requirements of this section:

(1) A risk based

capital report or final adjusted risk based capital report which indicates that

the insurer's total adjusted capital is greater than or equal to its mandatory

control level risk based capital but less than its authorized control level

risk based capital.

(2) The failure

of the insurer to comply with a corrective order after it is no longer subject

to appeal under section 8307 of this title.

(b) Upon the

occurrence of an event described in subsection (a) of this section, the

Commissioner shall take such actions as he or she deems necessary to protect

policyholders and creditors of the insurer, including those actions permitted

under section 8304 and chapter 145 of this title. In the event the Commissioner

seeks an order under chapter 145 of this title, the authorized control level

event shall be deemed sufficient grounds for the Commissioner's order, and the

Commissioner shall have the rights, powers, and duties with respect to the

insurer as are set forth in that chapter. In the event the Commissioner takes

actions under this subsection pursuant to an adjusted risk based capital report,

the insurer shall be entitled to such protections as are afforded to insurers

under the provisions of section 7041 of this title pertaining to summary

proceedings. (Added 1993, No. 235 (Adj. Sess.), § 8, eff. June 21, 1994.)