Vermont § 7070 - Assessments

§ 7070. Assessments

• (a) As soon as practicable but not more than two years from the date of an order of liquidation
  under section 7057 of this title of an insurer issuing assessable policies, the liquidator shall make a report to
  the court setting forth: (1) the reasonable value of the assets of the insurer; (2) the insurer’s probable total liabilities; (3) the probable aggregate amount of the assessment necessary to pay all claims of creditors
  and expenses in full, including expenses of administration and costs of collecting
  the assessment; and (4) a recommendation as to whether or not an assessment should be made and in what amount. (b)(1) Upon the basis of the report provided in subsection (a) of this section, including
  any supplements and amendments, the Superior Court of Washington County may levy one
  or more assessments against all members of the insurer who are subject to assessment. (2) Subject to any applicable legal limits on assessability, the aggregate assessment
  shall be for the amount that the sum of the probable liabilities, the expenses of
  administration, and the estimated cost of collection of the assessment exceeds the
  value of existing assets, with due regard being given to assessments that cannot be
  collected economically. (c) After levy of assessment under subsection (b) of this section, the liquidator shall
  issue an order directing each member who has not paid the assessment pursuant to the
  order to show cause why the liquidator should not pursue a judgment for such assessment. (d) The liquidator shall give notice of the order to show cause by publication and by
  first-class mail to each member liable under the order mailed to the member’s last
  known address as it appears on the insurer’s records, at least 20 days before the
  return day of the order to show cause. (e)(1) If a member does not appear and serve duly verified objections upon the liquidator
  on or before the return day of the order to show cause under subsection (c) of this
  section, the court shall make an order adjudging the member liable for the amount
  of the assessment against the member pursuant to subsection (c) of this section, together
  with costs, and the liquidator shall have a judgment against the member for the assessment. (2) If on or before such return day, the member appears and serves duly verified objections
  upon the liquidator, the Commissioner may hear and determine the matter or may appoint
  a referee to hear it and make such order as the facts warrant. In the event that
  the Commissioner determines that such objections do not warrant relief from assessment,
  the member may request the court to review the matter and vacate the order to show
  cause. (f) The liquidator may enforce any order or collect any judgment under subsection (e)
  of this section by any lawful means. (Added 1991, No. 45, § 2, eff. May 29, 1991; amended 2021, No. 105 (Adj. Sess.), § 257, eff. July 1, 2022.)