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The Vermont Statutes Online
Title
08
:
Banking and Insurance
Chapter
132
:
RECIPROCAL INSURERS
§
4856. Impaired reciprocals
(a) If the
assets of a domestic reciprocal insurer are at any time insufficient to
discharge its liabilities, other than any liability on account of funds
contributed by the attorney or others, and to maintain the required surplus,
its attorney shall forthwith make up the deficiency or levy an assessment upon
the subscribers for the amount needed to make up the deficiency, but subject to
the limitation set forth in the power of attorney or policy.
(b) If the
attorney fails to make up such deficiency or to make the assessment within 30
days after the Commissioner orders him or her to do so, or if the deficiency is
not fully made up within 60 days after the date the assessment was made, the
insurer shall be deemed insolvent and shall be proceeded against as authorized
by this title.
(c) If
liquidation of such an insurer is ordered, an assessment shall be levied upon
the subscribers for such an amount, subject to limits as provided by this
chapter, as the Commissioner determines to be necessary to discharge all
liabilities of the insurer, exclusive of any funds contributed by the attorney
or other persons, but including the reasonable cost of the liquidation. (Added
1971, No. 31, § 1, eff. March 31, 1971.)