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CARE Risk Retention Group, Inc.

CARE Risk Retention Group (“CARE” or the “Company”)

CARE was placed in rehabilitation by order of the Vermont Superior Court for Washington County (“Court”) on April 14, 2025, Docket No. 25-CV-1615. In its Order for Rehabilitation, the Court appointed the Commissioner as Rehabilitator, approved the proposed Plan of Rehabilitation, and directed that the Rehabilitator implement that plan.

The Order for Rehabilitation | directs that payment of all policy-level claims be paused. That pause includes, among other things, the payment of defense expenses, indemnity, and return premium. The Order for Rehabilitation further directs the Rehabilitator to take control of CARE’s assets and administer its operations while taking such actions as he may deem necessary to revitalize the Company. Over the next sixty days, the Rehabilitator will evaluate CARE’s financial condition and develop a report to Court that will include assessment of the Company’s ability to pay its obligations and a recommendation for the next steps. The Rehabilitator anticipates that these recommendations will include a plan for resuming payment, on at least a percentage basis, of policy-level obligations. The amount and timing of such distributions, however, cannot be projected at his time.

The Plan of Rehabilitation | contemplates a 90-day nationwide stay against the continuation or initiation of litigation against CARE policyholders respecting events assertedly covered under its policies of insurance. That stay is contained within the broader channeling injunction found in the Order for Rehabilitation (requiring that any actions against CARE, its officers, directors, manager, employees or agents be filed with the Court so that there is a single forum for adjudicating competing claims to estate assets) and is designed to provide an opportunity for the orderly transition of defense responsibilities from CARE to its insureds. The Rehabilitator will not seek a continuation of the stay beyond the initial 90 days.

Because CARE is in hazardous financial condition, its liabilities exceed its assets, and it is unclear whether it will be able to pay policy-level obligations in full, the Plan of Rehabilitation also requires the termination of all in-force CARE policies. The Rehabilitator is providing CARE members with written notice of that termination which will be effective on the earlier of the date on which the member advises CARE that alternative coverage is in place or 90 days from the date of notice.
The proceeding is being conducted pursuant to 8 V.S.A. Chapter 145. Key documents from the rehabilitation are posted below. Updates will be made to this page on a regular basis.

Documents

Questions?

Please contact counsel for the Rehabilitator:

Contacts 
Stuart Leslie (sleslie@davismalm.com)
Taylor Lovejoy (tlovejoy@davismalm.com)

Address 
Davis, Malm & D’Agostine, P.C.
One Boston Place, 37th Floor
Boston, MA 02108

Phone
617-367-2500