The Vermont Statutes Online
Banking and Insurance
INSURANCE COMPANIES GENERALLY
PROPERTY AND CASUALTY INSURANCE GUARANTY ASSOCIATION
3620. Prevention of insolvencies
To aid in the
detection and prevention of insurer insolvencies:
(1) It shall be
the duty of the board of directors, upon majority vote, to notify the
commissioner of any information indicating any member insurer may be insolvent
or in a financial condition hazardous to the policyholders or the public.
(2) The board of
directors may, upon majority vote, request that the commissioner order an
examination of any member insurer which the board in good faith believes may be
in a financial condition hazardous to the policyholders or the public. Within
30 days of the receipt of such request, the commissioner shall begin such
examination. The examination may be conducted as a National Association of
Insurance Commissioners examination or may be conducted by such persons as the
commissioner designates. The cost of such examination shall be paid by the
association and the examination report shall be treated as are other
examination reports. In no event shall such examination report be released to
the board of directors prior to its release to the public, but this shall not
preclude the commissioner from complying with subdivision (3) of this section.
The commissioner shall notify the board of directors when the examination is
completed. The request for an examination shall be kept on file by the
commissioner but it shall not be open to public inspection prior to the release
of the examination report to the public.
(3) It shall be
the duty of the commissioner to report to the board of directors when he or she
has reasonable cause to believe that any member insurer examined or being
examined at the request of the board of directors may be insolvent or in a
financial condition hazardous to the policyholders or the public.
(4) The board of
directors may, upon majority vote, make reports and recommendations to the
commissioner upon any matter germane to the solvency, liquidation,
rehabilitation or conservation of any member insurer. Such reports and
recommendations shall not be considered public documents.
(5) The board of
directors may, upon majority vote, make recommendations to the commissioner for
the detection and prevention of insurer insolvencies.
(6) The board of
directors shall, at the conclusion of any insurer insolvency in which the
association was obligated to pay covered claims, prepare a report on the
history and causes of such insolvency, based on the information available to
the association, and submit such report to the commissioner. (1969, No. 279
(Adj. Sess.), § 12.)