§ 4151. Short title

§ 4151. Short title This subchapter shall be known and may be cited as the Vermont Life and Health Insurance Guaranty Association Act. (Added 1971, No. 170 (Adj. Sess.), § 2, eff. April 27, 1972.)

§ 4152. Purpose

§ 4152. Purpose The purpose of this subchapter is to protect policyowners, insureds, beneficiaries, annuitants, payees, and assignees of life insurance policies, health insurance policies, annuity contracts, and supplemental contracts, subject to certain limitations, against failure in the performance of contractual obligations due to the impairment or insolvency of the insurer issuing such policies or […]

§ 4153. Scope

§ 4153. Scope (a) This subchapter shall provide coverage for the policies and contracts specified in subsection (b) of this section: (1) To persons who, regardless of where they reside (except for nonresident certificate holders under group policies or contracts and except for payees and beneficiaries of structured settlement annuities as specified in subdivision (3) […]

§ 4154. Construction

§ 4154. Construction This subchapter shall be liberally construed to effect the purpose under section 4152 of this title which shall constitute an aid and guide to interpretation. (Added 1971, No. 170 (Adj. Sess.), § 2, eff. April 27, 1972.)

§ 4155. Definitions

§ 4155. Definitions As used in this subchapter: (1) “Account” means either of the four accounts created under section 4156 of this title. (2) “Affiliate” means affiliate as defined in section 3681 of this title. (3) “Association” means the Vermont Life and Health Insurance Guaranty Association created under section 4156 of this title. (4) “Commissioner” […]

§ 4156. Creation of the Association

§ 4156. Creation of the Association (a) There is created a nonprofit legal entity to be known as the Vermont Life and Health Insurance Guaranty Association. All member insurers shall be and remain members of the Association as a condition of their authority to transact insurance in this State. The Association shall perform its functions […]

§ 4157. Board of Directors

§ 4157. Board of Directors (a) The Board of Directors of the Association shall consist of not less than five nor more than nine persons serving terms as established in the plan of operation. The members of the Board shall be selected by member insurers subject to the approval of the Commissioner. Vacancies on the […]

§ 4158. Powers and duties of the Association

§ 4158. Powers and duties of the Association In addition to the powers and duties enumerated in other sections of this subchapter: (1) If a member insurer is an impaired insurer, the Association, in its discretion and subject to any conditions imposed by the Association that do not impair the contractual obligations of the impaired […]

§ 4159. Assessments

§ 4159. Assessments (a) For the purpose of providing the funds necessary to carry out the powers and duties of the Association, the Board of Directors shall assess the member insurers, separately for each account, at such times and for such amounts as the Board finds necessary. The Board shall collect the assessment after 30 […]

§ 4160. Plan of operation

§ 4160. Plan of operation (a)(1) The Association shall submit to the Commissioner a plan of operation and any amendments to the plan necessary or suitable to ensure the fair, reasonable, and equitable administration of the Association. The plan of operation and any amendments to the plan shall become effective upon approval in writing by […]

§ 4161. Duties and powers of the Commissioner

§ 4161. Duties and powers of the Commissioner In addition to the duties and powers enumerated elsewhere in this subchapter, (1) The Commissioner shall: (A) Notify the Board of Directors of the existence of an impaired or insolvent insurer not later than three days after a determination of impairment or insolvency is made or he […]

§ 4162. Prevention of impairment or insolvency

§ 4162. Prevention of impairment or insolvency To aid in the detection and prevention of insurer impairment or insolvency: (1) The Board of Directors shall, upon majority vote, notify the Commissioner of any information indicating any member insurer may be unable or potentially unable to fulfill its contractual obligations. (2) The Board of Directors may, […]

§ 4163. Appointment of special deputy

§ 4163. Appointment of special deputy The Commissioner may appoint a person to serve, at the expense of the Association, as a special deputy to act for and under his or her supervision in the liquidation, rehabilitation, or conservation of any member insurer. (Added 1971, No. 170 (Adj. Sess.), § 2, eff. April 27, 1972.)

§ 4164. Miscellaneous provisions

§ 4164. Miscellaneous provisions (a) Nothing in this subchapter shall be construed to reduce the liability for unpaid assessments of the insureds of an impaired or insolvent insurer operating under a plan with assessment liability. (b) Records shall be kept of all negotiations and meetings in which the Association or its representatives are involved to […]

§ 4165. Examination of the Association; annual report

§ 4165. Examination of the Association; annual report The Association shall be subject to examination and regulation by the Commissioner. The Board of Directors shall submit to the Commissioner, not later than May 1 of each year, a financial report for the preceding calendar year in a form approved by the Commissioner and a report […]

§ 4166. Tax exemptions

§ 4166. Tax exemptions The Association shall be exempt from payment of all fees and all taxes levied by this State or any of its subdivisions, except taxes levied on real property. (Added 1971, No. 170 (Adj. Sess.), § 2, eff. April 27, 1972.)

§ 4167. Tax write-offs of certificates of contribution

§ 4167. Tax write-offs of certificates of contribution (a) Unless a longer period has been allowed by the Commissioner, a member insurer shall at its option have the right to show a certificate of contribution as an asset in the form approved by the Commissioner pursuant to subsection 4159(g) of this title, at percentages of […]

§ 4168. Immunity

§ 4168. Immunity There shall be no liability on the part of and no cause of action of any nature shall arise against any member insurer or its agents or employees, the Association or its agents or employees, members of the Board of Directors, or the Commissioner or his or her representatives for any action […]

§ 4169. Stay of proceedings; reopening default judgments

§ 4169. Stay of proceedings; reopening default judgments All proceedings in which the impaired or insolvent insurer is a party in any court in this State shall be stayed 60 days from the date an order of liquidation, rehabilitation, or conservation is final to permit proper legal action by the Association on any matters germane […]