Vermont § 7055 - Termination of rehabilitation

§ 7055. Termination of rehabilitation

• (a) Whenever the Commissioner believes further attempts to rehabilitate an insurer would
  substantially increase the risk of loss to creditors, policyholders, or the public,
  or would be futile, the Commissioner may petition the Superior Court of Washington
  County for an order of liquidation. A petition under this subsection shall have the
  same effect as a petition under section 7056 of this title. The court shall permit the directors of the insurer to take such actions as are
  reasonably necessary to defend against the petition but may order payment from the
  estate of the insurer of costs and other expenses of defense only if the directors
  make a showing to the satisfaction of the court that they incurred such expenses in
  good faith and with a reasonable belief that they would prevail. (b) The protection of the interests of insureds, claimants, and the public requires the
  timely performance of all insurance policy obligations. If the payment of policy
  obligations is suspended in substantial part for a period of six months at any time
  after the appointment of the rehabilitator and the rehabilitator has not filed an
  application for approval of a plan under subsection 7053(d) of this title, the rehabilitator shall petition the court for an order of liquidation on grounds
  of insolvency. (c) The rehabilitator may at any time petition the Superior Court of Washington County
  for an order terminating rehabilitation of an insurer. The court shall also permit
  the directors of the insurer to petition the court for an order terminating rehabilitation
  of the insurer and may order payment from the estate of the insurer of such costs
  and other expenses of such petition only if the directors make a showing to the satisfaction
  of the court that they incurred such expenses in good faith and with a reasonable
  belief that they would prevail. If the court upon a petition or upon its own motion
  finds that rehabilitation has been accomplished and that grounds for rehabilitation
  under section 7051 of this title no longer exist, it shall order that the insurer be restored to possession of its
  property and the control of the business. (Added 1991, No. 45, § 2, eff. May 29, 1991.)