Vermont § 7042 - Court’s seizure order

§ 7042. Court’s seizure order

• (a) The Commissioner may file in the Superior Court of Washington County a petition alleging,
  with respect to a domestic insurer: (1) that there exist grounds that would justify a court order for a formal delinquency
  proceeding against an insurer under this chapter; (2) that the interests of policyholders, creditors, or the public will be endangered by
  delay; and (3) the contents of an order deemed necessary by the Commissioner. (b) Upon filing a petition under subsection (a) of this section, the court may issue immediately,
  ex parte and without a hearing, an order directing the Commissioner to take possession
  and control of all or a part of the property, books, accounts, documents, and other
  records of an insurer, and of the premises occupied by it for transaction of its business;
  and enjoining the insurer and its officers, managers, agents, and employees from disposing
  of its property and from transacting its business except with the written consent
  of the Commissioner. (c) The court shall specify in the order issued under subsection (b) of this section its
  duration, which shall be such time as the court deems necessary for the Commissioner
  to ascertain the condition of the insurer. On motion of either party or on its own
  motion, the court may from time to time hold such hearings as it deems desirable after
  such notice as it deems appropriate, and may extend, shorten, or modify the terms
  of the seizure order. The court shall vacate the seizure order if the Commissioner
  fails to commence a formal proceeding under this chapter after having had a reasonable
  opportunity to do so. An order of the court pursuant to a formal proceeding under
  this chapter shall vacate the seizure order. (d) Entry of a seizure order under this section shall not constitute an anticipatory breach
  of any contract of the insurer. (e) An insurer subject to an ex parte order under this section may petition the court
  at any time after the issuance of the order for a hearing and review of the order.
  The court shall hold a hearing and review the order not more than 30 days after the
  request. A hearing under this subsection may be held privately in chambers and it
  shall be so held if the insurer proceeded against so requests. (f) If, at any time after the issuance of such an order, it appears to the court that
  a person whose interest is or will be substantially affected by the order did not
  appear at the hearing and has not been served, the court may order that notice be
  given. An order that notice be given shall not stay the effect of any order previously
  issued by the court. (Added 1991, No. 45, § 2, eff. May 29, 1991; amended 2021, No. 105 (Adj. Sess.), § 252, eff. July 1, 2022.)