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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










 

§

7099. Interstate priorities

(a) In a

liquidation proceeding in this State involving one or more reciprocal states,

the order of distribution of the domiciliary state shall control as to all

claims of residents of this and reciprocal states. All claims of residents of

reciprocal states shall be given equal priority of payment from general assets

regardless of where such assets are located.

(b) The owners

of special deposit claims against an insurer for which a liquidator is

appointed in this or any other state shall be given priority against the

special deposits in accordance with the statutes governing the creation and

maintenance of the deposits. If there is a deficiency in any deposit, so that

the claims secured by it are not fully discharged from it, the claimants may

share in the general assets, but the sharing shall be deferred until general

creditors, and also claimants against other special deposits who have received

smaller percentages from their respective special deposits, have been paid

percentages of their claims equal to the percentage paid from the special

deposit.

(c) The owner of

a secured claim against an insurer for which a liquidator has been appointed in

this or any other state may surrender his or her security and file a claim as a

general creditor, or the claim may be discharged by resort to the security in

accordance with section 7080 of this title, in which case the deficiency, if

any, shall be treated as a claim against the general assets of the insurer on

the same basis as claims of unsecured creditors. (Added 1991, No. 45, § 2, eff.

May 29, 1991.)