Vermont § 6039 - Claimant recourse

§ 6039. Claimant recourse

• (a) Consistent with the provisions of this subchapter, a creditor of a sponsored captive
  insurance company shall have recourse against the assets attributable to a protected
  cell if, and only if it is a creditor of the protected cell. A creditor of a protected
  cell shall not be entitled to recourse against the assets attributable to any other
  protected cell or to the assets in the sponsored captive insurance company’s general
  account. (b) When a sponsored captive insurance company has an obligation to a creditor arising
  from a transaction, or otherwise imposed, with respect to a particular protected cell,
  the obligation: (1) shall extend only to the assets attributable to that protected cell, and the creditor
  shall be entitled to recourse only against the assets attributable to that protected
  cell; and (2) shall not extend to the assets of any other protected cell or to the assets in the
  sponsored captive insurance company’s general account, and the creditor shall not
  be entitled to recourse against the assets attributable to any other protected cell
  or to the assets of the sponsored captive insurance company’s general account. (c) When an obligation of a sponsored captive insurance company relates solely to its
  general account, a creditor shall have recourse only against the assets in the general
  account. (d) The establishment of one or more protected cells alone, and without more, shall not
  constitute or be deemed to be a fraudulent conveyance, an intent by the sponsored
  captive insurance company to defraud creditors, or the carrying out of business by
  the sponsored captive insurance company for any other fraudulent purpose. (Added 2015, No. 20, § 8, eff. May 7, 2015.)