§ 4152 - Purpose - Vermont Statutes

§ 4152. Purpose

The purpose of this subchapter is to protect policyowners, insureds, beneficiaries, annuitants, payees, and assignees of life insurance policies, health insurance policies, annuity contracts, and supplemental contracts, subject to certain limitations, against failure in the performance of contractual obligations due to the impairment of the insurer issuing such policies or contracts. To provide this protection, (1) an association of insurers is created to enable the guaranty of payment of benefits and of continuation of coverages, (2) members of the association are subject to assessment to provide funds to carry out the purpose of this subchapter, and (3) the association is authorized to assist the commissioner, in the prescribed manner, in the detection and prevention of insurer impairments. (Added 1971, No. 170 (Adj. Sess.), § 2, eff. April 27, 1972.)