Vermont Statutes
Chapter 101 - Insurance Companies Generally
§ 3689. Injunctions; prohibitions against voting securities; sequestration of voting securities

§ 3689. Injunctions; prohibitions against voting securities; sequestration of voting securities
(a) Injunctions. Whenever it appears to the Commissioner that any insurer or any director, officer, employee, or agent thereof has committed or is about to commit a violation of this subchapter or of any rule, regulation, or order issued by the Commissioner hereunder, the Commissioner may apply to the Superior Court for the county in which the principal office of the insurer is located or if such insurer has no such office in this State then to the Superior Court for Washington County for an order enjoining such insurer or such director, officer, employee, or agent thereof from violating or continuing to violate this subchapter or any such rule, regulation or order, and for such other equitable relief as the nature of the case and the interests of the insurer’s policyholders, creditors, and shareholders or the public may require.
(b) Voting of securities, when prohibited. No security which is the subject of any agreement regarding acquisition, or which is acquired or to be acquired, in contravention of the provisions of this subchapter or of any rule, regulation or order issued by the Commissioner hereunder may be voted at any shareholders’ meeting, or may be counted for quorum purposes, and any action of shareholders requiring the affirmative vote of a percentage of shares may be taken as though such securities were not issued and outstanding; but no action taken at any such meeting shall be invalidated by the voting of such securities, unless the action would materially affect control of the insurer or unless the courts of this State have so ordered. If an insurer or the Commissioner has reason to believe that any security of the insurer has been or is about to be acquired in contravention of the provisions of this subchapter or of any rule, regulation or order issued by the Commissioner hereunder the insurer or the Commissioner may apply to the Superior Court for the county in which the insurer has its principal place of business or to the Superior Court for Washington County to enjoin any offer, request, invitation, agreement or acquisition made in contravention of section 3685 of this title or any rule, regulation, or order issued by the Commissioner thereunder to enjoin the voting of any security so acquired, to void any vote of such security already cast at any meeting of shareholders, and for such other equitable relief as the nature of the case and the interests of the insurer’s policyholders, creditors and shareholders or the public may require.
(c) Sequestration of voting securities. In any case where a person has acquired or is proposing to acquire any voting securities in violation of this subchapter or any rule, regulation, or order issued by the Commissioner hereunder, the Superior Court for the county in which the insurer has its principal place of business or the Superior Court of Washington County may, on such notice as the court deems appropriate, upon the application of the insurer or the Commissioner, seize or sequester any voting securities of the insurer owned directly or indirectly by such person, and issue such orders with respect thereto as may be appropriate to effectuate the provisions of this subchapter. Notwithstanding any other provisions of law, for the purposes of this subchapter the situs of the ownership of the securities of domestic insurers shall be deemed to be in this State. (Added 1971, No. 72, § 2; amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974.)

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