§ 4992 - Termination - Vermont Statutes

§ 4992. Termination

The authority granted to the commissioner to establish a joint underwriting association under this chapter shall continue indefinitely unless the authority is terminated by act of the general assembly. In the event authority is so terminated, any association established prior to the termination date may continue to exist for a period of one year from the date it commences underwriting activities. All obligations incurred by the association or by policyholders during this period shall be honored and binding until discharged, and any association shall remain in effect for the purpose of discharging any obligations incurred. The plan of operation shall provide for the orderly dissolution of the association at its termination. Upon termination of the association and the discharge of all its liabilities and at any such other time as may be specified in the plan, any excess funds of the association shall be distributed to the policyholders of the association in an equitable manner as set forth in the plan of operation. (Added 1985, No. 265 (Adj. Sess.), § 4, eff. June 4, 1986; amended 1987, No. 20; 1987, No. 185 (Adj. Sess.), § 7, eff. May 5, 1988; 1989, No. 113, § 3.)