Title 08, Title 08: Banking and Insurance

§ 7074. Filing of claims (a) Proof of all claims shall be filed with the liquidator in the form required by section 7075 of this title on or before the last day for filing specified in the notice required under section 7061 of this title, except that proof of claims for cash surr…

§ 7075. Proof of claim (a) Proof of claim shall consist of a statement signed by the claimant that includes all the following that are applicable: (1) the particulars of the claim including the consideration given for it; (2) the identity and amount of the security on the claim; …

§ 7076. Special claims (a) The claim of a third party that is contingent only on his or her first obtaining a judgment against the insured shall be considered and allowed as if there were no such contingency. (b) A claim may be allowed even if contingent, if it is filed in accord…

§ 7077. Special provisions for third-party claims (a) Whenever any third party asserts a cause of action against an insured of an insurer in liquidation, the third party may file a claim with the liquidator. (b) Whether or not the third party files a claim, the insured may file a…

§ 7078. Disputed claims (a) When a claim is denied in whole or in part by the liquidator, written notice of the determination shall be given to the claimant or the claimant’s attorney by first-class mail at the address shown in the proof of claim. Within 60 days from the mailing …

§ 7079. Claims of surety Whenever a creditor whose claim against an insurer is secured, in whole or in part, by the undertaking of another person, fails to prove and file that claim, the other person may do so in the creditor’s name, and shall be subrogated to the rights of the c…

§ 7080. Secured creditor’s claims (a) The value of any security held by a secured creditor shall be determined in one of the following ways, as the court may direct: (1) by converting the same into money according to the terms of the agreement pursuant to which the security was d…

§ 7081. Priority of distribution The priority of distribution of claims from the insurer’s estate shall be in accordance with the order in which each class of claims is set forth in this section. Every claim in each class shall be paid in full or adequate funds retained for such …

§ 7082. Liquidator’s recommendations to the court (a) The liquidator shall review all claims duly filed in the liquidation and shall make such further investigation as he or she shall deem necessary. He or she may compound, compromise, or in any other manner negotiate the amount …

§ 7083. Distribution of assets Under the direction of the court, the liquidator shall pay distributions in a manner that will ensure the proper recognition of priorities and a reasonable balance between the expeditious completion of the liquidation and the protection of unliquida…

§ 7084. Unclaimed and withheld funds (a) All unclaimed funds subject to distribution remaining in the liquidator’s hands when the liquidator is ready to apply to the court for discharge, including the amount distributable to any creditor, shareholder, member, or other person who …

§ 7085. Termination of proceedings (a) When all assets justifying the expense of collection and distribution have been collected and distributed under this chapter, the liquidator shall apply to the court for discharge. The court may grant the discharge and make any other orders,…

§ 7086. Reopening liquidation After the liquidation proceeding has been terminated and the liquidator discharged, the Commissioner or other interested party may at any time petition the Superior Court of Washington County to reopen the proceedings for good cause, including the di…

§ 7087. Disposition of records during and after termination of liquidation Whenever it shall appear to the Commissioner that the records of any insurer in process of liquidation or completely liquidated are no longer useful and are no longer required by law to be retained, the Co…

§ 7088. External audit of the receiver’s books The Superior Court of Washington County may, as it deems desirable, cause audits to be made of the books of the Commissioner relating to any receivership established under this chapter, and a report of each audit shall be filed with …

§ 7091. Conservation of property of foreign or alien insurers found in this State (a) If a domiciliary liquidator has not been appointed, the Commissioner may apply to the Superior Court of Washington County by verified petition for an order directing the Commissioner to act as c…

§ 7092. Liquidation of property of foreign or alien insurers found in this State (a) If no domiciliary receiver has been appointed, the Commissioner may apply to the Superior Court of Washington County by verified petition for an order directing the Commissioner to liquidate the …

§ 7093. Domiciliary liquidators in other states (a) The domiciliary liquidator of an insurer domiciled in a reciprocal state shall, except as to special deposits and security on secured claims under subsection 7094(c) of this title, be vested by operation of law with the title to…

§ 7094. Ancillary formal proceedings (a) If a domiciliary liquidator has been appointed for an insurer not domiciled in this State, the Commissioner may file a petition with the Superior Court of Washington County requesting appointment as ancillary receiver in this State if the …

§ 7095. Ancillary summary proceedings The Commissioner in his or her sole discretion may institute proceedings under subchapter 2 of this chapter at the request of the Commissioner or other appropriate insurance official of the domiciliary state of any foreign or alien insurer ha…

§ 7096. Claims of nonresidents against insurers domiciled in this State (a) In a liquidation proceeding begun in this State against an insurer domiciled in this State, claimants residing in foreign countries or in states not reciprocal states must file claims in this State, and c…

§ 7097. Claims of residents against insurers domiciled in reciprocal states (a) In a liquidation proceeding in a reciprocal state against an insurer domiciled in that state, claimants against the insurer who resides within this State may file claims either with the ancillary rece…

§ 7098. Attachment, garnishment and levy of execution During the pendency in this or any other state of a liquidation proceeding, whether called by that name or not, no action or proceeding in the nature of an attachment, garnishment, or levy of execution shall be commenced or ma…

§ 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…

§ 7100. Subordination of claims for noncooperation If an ancillary receiver in another state or foreign country, whether called by that name or not, fails to transfer to the domiciliary liquidator in this State any assets within his or her control other than special deposits, dim…

§ 7111. Definitions As used in this chapter: (1) “Assuming company” means a Vermont-domiciled company established specifically to acquire a closed block under a legacy insurance transfer plan approved by the Commissioner. (2) “Closed block” means a block, line, or group of commer…

§ 7112. Application; fee; plan (a) An assuming company shall file a plan with the Commissioner and, at the time of filing, shall pay to the Commissioner the fee described in subdivision 7116(a)(1) of this chapter. (b) A plan shall include the following: (1) A list of all policies…

§ 7113. Plan review (a) The Commissioner may retain an actuary to conduct an actuarial study quantifying the liabilities under insurance policies and reinsurance agreements to be transferred to the assuming company under the plan and is authorized to retain any other legal, finan…

§ 7114. Order (a) Within 30 days of the date the hearing is held on the plan, the Commissioner shall issue an order setting forth the amount of fees payable by the assuming company under subdivision 7116(a)(2) of this chapter, payable not later than 14 days after the date of such…

§ 7115. Jurisdiction; appeals (a) The Commissioner shall have exclusive regulatory jurisdiction with respect to the review and approval or denial of any plan. (b) Any party aggrieved by a final order of the Commissioner may appeal that order to the Vermont Supreme Court under 3 V…

§ 7116. Fee; costs; transfer tax (a) To cover the costs of processing and reviewing a plan under this chapter, the assuming company shall pay to the Commissioner the following nonrefundable fees at the times set forth in subsections 7112(a) and 7114(a) of this chapter: (1) an adm…

§ 7117. Examinations (a) The Commissioner has the authority to order any assuming company to produce any records, books, and papers in the possession of the assuming company or its affiliates necessary to ascertain the financial condition or legality of conduct of the assuming co…

§ 7118. Applicable laws (a) Chapter 157 (transfer and novation of insurance contracts) of this title shall not apply to any legacy insurance transfer under this chapter. (b) In the event of any conflict between a provision of this chapter and any other provision of this title, su…

§ 7119. Assuming company; Board; principal place of business; registered agent No assuming company shall be a party to a legacy insurance transfer under this chapter unless: (1) its board of directors or committee of managers holds at least one meeting each year in this State; (2…

§ 7120. Posting of plans on website The Commissioner shall require that all plans filed with the Department are posted on the Department’s website, along with any other notice or other information the Commissioner deems appropriate, excluding any information designated as confide…

§ 7121. Regulation of assuming companies and service providers (a) An assuming company shall be subject to all rules adopted by the Commissioner under this chapter and also shall be subject to: (1) chapter 145 (supervision, rehabilitation, and liquidation of insurers) of this tit…

§ 7122. Scope and purpose (a) The purpose of this chapter is to promote the public welfare by creating a comprehensive legal framework within which travel insurance may be sold in Vermont. (b) The requirements of this chapter apply to travel insurance that covers any resident of …

§ 7123. Definitions As used in this chapter: (1) “Aggregator site” means a website that provides access to information regarding insurance products from more than one insurer, including product and insurer information, for use in comparison shopping. (2) “Blanket travel insurance…

§ 7124. Licensing and registration (a) The Commissioner may issue to an individual or a business entity that has complied with the requirements of this chapter and filed an application for such limited lines travel insurance producer license in a form and manner prescribed by the…

§ 7125. Premium tax (a) A travel insurer shall pay premium tax, as provided in 32 V.S.A. § 8551, on travel insurance premiums paid by any of the following: (1) a primary policyholder who is a resident of this State; (2) a primary certificate holder who is a resident of this State…

§ 7126. Travel protection plans A travel protection plan may be offered for one price for the combined features that the travel protection plan offers in this State if: (1) the travel protection plan clearly discloses to the consumer, at or prior to the time of purchase, that it …

§ 7127. Sales practices (a) All persons offering travel insurance to residents of this State are subject to chapter 129 of this title, except as otherwise provided in this section. In the event of a conflict between this chapter and other provisions of this title regarding the sa…

§ 7128. Travel administrators (a) A person shall not act or represent themself as a travel administrator for travel insurance in this State unless that person: (1) is a licensed property and casualty insurance producer in this State for activities permitted under that producer li…

§ 7129. Policy (a) Notwithstanding any other provision of this title to the contrary, travel insurance shall be classified and filed for purposes of rates and forms under an inland marine line of insurance; provided, however, that travel insurance that provides coverage for sickn…

§ 7130. Rulemaking authority The Commissioner may adopt rules to implement the provisions of this chapter. (Added 2021, No. 139 (Adj. Sess.), § 10, eff. August 25, 2022.)

§ 7151. Short title This chapter shall be known and may be cited as the “Pet Insurance Act.” (Added 2023, No. 110 (Adj. Sess.), § 28, eff. July 1, 2025.)