§4856. Impaired reciprocals

Link to law: http://legislature.vermont.gov/statutes/section/08/132/04856
Published: 2015

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The Vermont Statutes Online



Banking and Insurance






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.)