Vermont Statutes
Chapter 101 - Insurance Companies Generally
§ 3620. Prevention of insolvencies

§ 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. (Added 1969, No. 279 (Adj. Sess.), § 12.)

Structure Vermont Statutes

Vermont Statutes

Title 8 - Banking and Insurance

Chapter 101 - Insurance Companies Generally

§ 3301. Purposes

§ 3301a. Insurance defined

§ 3302. Plan of organization; incorporators

§ 3303. Mutual companies; directors, charter provisions as to

§ 3304. Capital and surplus requirements

§ 3305. Petition; hearing

§ 3306. Duties of Secretary of State, records

§ 3307. Consideration for stock

§ 3308. List of stockholders; certificate to transact business; liability of president and directors

§ 3308a. Reorganization formations

§ 3309. Mutual insurers to commence business; when

§ 3310. Amendment of charter

§ 3311. Quorum

§ 3312. Construction with other laws

§ 3313. Proxies

§ 3314. Annual financial statements; reports; filing fee

§ 3315. Coordinated regulation

§ 3316. Corporate governance; disclosure

§ 3361. Requirements for license

§ 3362. Authority to transact various kinds of insurance business

§ 3363. Revocation of license

§ 3364. Authorization for investment purposes only

§ 3365. Plan of organization

§ 3366. Assets of companies

§ 3367. Retaliatory provisions

§ 3368. Transacting business without certificate of authority prohibited

§ 3368a. Unauthorized and misleading transactions

§ 3369. Commissioner may enjoin unauthorized insurer

§ 3370. Service of process upon unauthorized insurer by director

§ 3371. Limits of risk

§ 3381. Legislative purpose and policy

§ 3382. Acts which constitute Secretary of State agent for service of process

§ 3383. Service upon the Secretary of State notice to defendant

§ 3384. Service upon other agents; notice to defendant

§ 3386. Effect on other modes of service

§ 3387. Prerequisites to defense of action

§ 3388. Postponements

§ 3389. Motion to quash for improper service

§ 3390. Attorney’s fees

§ 3421. Mutualization of stock insurer

§ 3422. Mutual insurers—Prohibitions

§ 3423. Converting mutual insurer or mutual insurance holding company

§ 3424. Procedure for merger

§ 3425. Procedure for consolidation

§ 3426. Effective date of merger or consolidation

§ 3427. Voting

§ 3428. Rights of dissenting shareholders

§ 3429. Rights of dissenting members or policyholders

§ 3430. Effect of merger or consolidation

§ 3431. Merger or consolidation between domestic and foreign insurers—Requirements

§ 3432. Transfer of deposits

§ 3433. Certificates of fees and commissions paid

§ 3434. Fees—Penalty for receiving

§ 3437. Redomestication; approval as a domestic insurer

§ 3438. Redomestication; conversion to foreign insurer

§ 3439. Effects of redomestication

§ 3440. Redomestication; fees

§ 3441. Formation of a mutual insurance holding company

§ 3442. Merger of mutual insurance company into an existing mutual insurance holding company; merger and acquisition by mutual insurance holding company or subsidiary of mutual insurance holding company

§ 3443. Regulated as an insurance company

§ 3444. Demutualization of a mutual insurance holding company

§ 3445. Membership interest not a security

§ 3446. Filing of amended charters

§ 3461. Definitions

§ 3461a. General limitations and diversification requirements for property and casualty, financial guaranty and mortgage guaranty insurers

§ 3461b. General limitations and diversification requirements for life and health insurers

§ 3461c. Rated credit investments

§ 3461d. Registration or filing exemption

§ 3462. Investments—Foreign insurers

§ 3463. Domestic insurers

§ 3463a. Valuation of investments

§ 3465. Exemption from investment limitations

§ 3467. Qualification of investments

§ 3468. Investments qualified under prior law

§ 3469. Loans to directors and officers—Restrictions

§ 3470. Mortgage loans to minors

§ 3471. Mortgages on real and personal property as liens; priorities

§ 3472. Earnings statements and income ratios—Special situations

§ 3501. Life insurance and annuities

§ 3502. Insurance—Other life insurance and annuities

§ 3503. Deposits of domestic insurer doing foreign business

§ 3504. Pension system

§ 3541. Filing and approval of forms

§ 3542. Grounds for disapproval

§ 3543. Existing forms and filings

§ 3552. Fees assessed by the National Association of Insurance Commissioners

§ 3561. Annual statement

§ 3562. Time reports due

§ 3563. Examination of companies; fees

§ 3564. Examination of foreign insurers; expenses

§ 3565. Examination of officers and books

§ 3566. Penalty for refusal

§ 3567. Liquor liability insurance records

§ 3568. Preservation of records

§ 3569. National Association of Insurance Commissioners filing requirements

§ 3570. Immunity

§ 3571. Confidentiality

§ 3572. Revocation of certificate of authority

§ 3573. Conduct of examinations

§ 3574. Examination reports

§ 3575. Conflict of interest

§ 3576. Immunity from liability

§ 3577. Requirements for actuarial opinions

§ 3578a. Annual financial reporting

§ 3579. Qualified accountants

§ 3581. Purpose; scope; intent

§ 3582. Definitions

§ 3583. Risk management framework

§ 3584. ORSA requirement

§ 3585. Summary report

§ 3586. Exemption

§ 3587. Contents of ORSA summary report

§ 3588. Confidentiality

§ 3589. Sanctions

§ 3604. Offset

§ 3611. Scope of subchapter; short title

§ 3612. Definitions

§ 3613. Creation of Association

§ 3614. Board of Directors

§ 3615. Powers and duties of Association

§ 3616. Plan of operation

§ 3617. Powers and duties of Commissioner

§ 3618. Effect of paid claims

§ 3619. Nonduplication of recovery

§ 3620. Prevention of insolvencies

§ 3621. Examination of Association

§ 3622. Tax exemption

§ 3623. Recognition of assessments in rates

§ 3624. Immunity

§ 3625. Stay of proceedings; reopening of default judgment

§ 3626. Prohibition against advertising of membership in Association

§ 3634a. Credit for reinsurance

§ 3635. Insolvency of ceding company

§ 3636. Reinsurance contract

§ 3641. Claims, rights, title, and interests of nonresidents

§ 3642. Liability for payments to nonresidents

§ 3661. Cease and desist powers; prosecutions and penalties

§ 3662. Nonpayment of judgment; penalty

§ 3663. Minimum limitation on actions; void policy provisions

§ 3664. Forms; filing proof of loss and other documents, waiver of filing

§ 3665a. Timely payment of property and casualty insurance claims; interest

§ 3665b. Timely payment of life insurance claims and annuity death benefits; interest

§ 3665c. Damages

§ 3666. Rules; methods of notice

§ 3671. Disclosure of information

§ 3672. Immunity

§ 3673. Penalty for noncompliance

§ 3681. Definitions

§ 3682. Subsidiaries of insurers

§ 3683. Acquisition of control of or merger with domestic insurer

§ 3683a. Acquisitions involving insurers not otherwise covered

§ 3684. Registration of insurers

§ 3685. Standards and management of an insurer within an insurance holding company system

§ 3686. Examination

§ 3687. Confidential treatment

§ 3688. Rules and regulations

§ 3689. Injunctions; prohibitions against voting securities; sequestration of voting securities

§ 3690. Sanctions

§ 3691. Receivership

§ 3692. Revocation, suspension, or nonrenewal of insurer’s license

§ 3693. Judicial review

§ 3694. Recovery

§ 3695. Supervisory colleges

§ 3696. Groupwide supervisor; internationally active insurance group