Vermont § 6048m - Delinquency

§ 6048m. Delinquency

• (a) Except as otherwise provided in this section, the provisions of chapter 145 of this
  title shall apply in full to a special purpose financial insurance company. (b) Upon any order of supervision, rehabilitation, or liquidation of a special purpose
  financial insurance company, the receiver shall manage the assets and liabilities
  of the special purpose financial insurance company pursuant to the provisions of this
  subchapter. (c) Amounts recoverable by the receiver of a special purpose financial insurance company
  under a reinsurance contract shall not be reduced or diminished as a result of the
  entry of an order of conservation, rehabilitation, or liquidation with respect to
  a ceding insurer, notwithstanding any provision in the contracts or other documentation
  governing the special purpose financial insurance company securitization. (d) Notwithstanding the provisions of chapter 145 of this title or any other law of this
  State: (1) An application or petition or a temporary restraining order or injunction issued pursuant
  to the provisions of chapter 145 of this title with respect to a ceding insurer does
  not prohibit the transaction of business by a special purpose financial insurance
  company, including any payment by a special purpose financial insurance company made
  with respect to a special purpose financial insurance company security, or any action
  or proceeding against a special purpose financial insurance company or its assets. (2) The commencement of a summary proceeding with respect to a special purpose financial
  insurance company and any order issued by the court in such summary proceeding shall
  not prohibit payments by a special purpose financial insurance company and shall not
  prohibit the special purpose financial insurance company from taking any action required
  to make such payments, provided such payments are made: (A) pursuant to a special purpose financial insurance company security or reinsurance
  contract; and (B) consistent with the special purpose financial insurance company’s plan of operation
  and any order issued to the special purpose financial insurance company pursuant to
  subsection 6048d(b) of this subchapter, as either is amended from time to time. (3) A receiver of a ceding insurer may not void a nonfraudulent transfer by a ceding insurer
  to a special purpose financial insurance company of money or other property made pursuant
  to a reinsurance contract. (4) A receiver of a special purpose financial insurance company may not void a nonfraudulent
  transfer by the special purpose financial insurance company of money or other property: (A) made to a ceding insurer pursuant to a reinsurance contract or made to or for the
  benefit of any holder of a special purpose financial insurance company security with
  respect to the special purpose financial insurance company security; and (B) made consistent with the special purpose financial insurance company’s plan of operation
  and any order issued to the special purpose financial insurance company pursuant to
  subsection 6048d(b) of this subchapter, as either is amended from time to time. (e) With the exception of the fulfillment of the obligations under a reinsurance contract
  and notwithstanding another provision of this subchapter or other laws of this State,
  the assets of a special purpose financial insurance company, including assets held
  in trust, on a funds-withheld basis, or in any other arrangement to secure the special
  purpose financial insurance company’s obligations under a reinsurance contract, shall
  not be consolidated with or included in the estate of a ceding insurer in any delinquency
  proceeding against the ceding insurer pursuant to the provisions of this subchapter
  for any purpose including distribution to creditors of the ceding insurer. (Added 2007, No. 49, § 17; amended 2013, No. 29, § 64, eff. May 13, 2013.)