Vermont § 4856 - Impaired reciprocals

§ 4856. Impaired reciprocals

• (a) If the assets of a domestic reciprocal insurer are at any time insufficient to discharge
  its liabilities, other than any liability on account of funds contributed by the attorney
  or others, and to maintain the required surplus, its attorney shall immediately make
  up the deficiency or levy an assessment upon the subscribers for the amount needed
  to make up the deficiency, but subject to the limitation set forth in the power of
  attorney or policy. (b) If the attorney fails to make up such deficiency or to make the assessment within
  30 days after the Commissioner orders him or her to do so, or if the deficiency is
  not fully made up within 60 days after the date the assessment was made, the insurer
  shall be deemed insolvent and shall be proceeded against as authorized by this title. (c) If liquidation of such an insurer is ordered, an assessment shall be levied upon the
  subscribers for such an amount, subject to limits as provided by this chapter, as
  the Commissioner determines to be necessary to discharge all liabilities of the insurer,
  exclusive of any funds contributed by the attorney or other persons, but including
  the reasonable cost of the liquidation. (Added 1971, No. 31, § 1, eff. March 31, 1971; amended 2021, No. 105 (Adj. Sess.), § 235, eff. July 1, 2022.)