---
title: "Industry News: CARE Risk Retention Group Placed into Rehabilitation by Vermont DFR"
description: HPL News. CARE Risk Retention Group placed into rehabilitation by Vermont DFR due to hazardous financial condition. Policy claims paused; rehabilitation plan includes 90-day litigation stay.
image: https://www.ethosinsurance.com/hubfs/Imported_Blog_Media/Industry-News-Sep-03-2021-01-16-50-77-PM.jpg
---

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# Industry News: CARE Risk Retention Group Placed into Rehabilitation by Vermont DFR

 April 29th, 2025 | 1 min. read

By [Admin](https://www.ethosinsurance.com/blog/author/admin)

![](https://www.ethosinsurance.com/hubfs/Imported_Blog_Media/Industry-News-Sep-03-2021-01-16-50-77-PM.jpg)

The Vermont Department of Financial Regulation (DFR) has announced that CARE Risk Retention Group, Inc. (CARE/CARE RRG) has been placed into rehabilitation by order of the Vermont Superior Court for Washington County. This action follows a determination that CARE is in a hazardous financial condition, with liabilities exceeding its assets.​

Under the court's order, the DFR Commissioner has been appointed as the Rehabilitator, tasked with taking control of CARE’s assets and operations. All policy-level claims payments, including defense expenses, indemnity, and return premiums, are currently paused. The Rehabilitator will assess CARE's financial condition over the next 60 days and report to the court with recommendations, which may include plans for resuming partial payments to policyholders.​

Additionally, the rehabilitation plan includes a 90-day nationwide stay on litigation against CARE policyholders for events covered under its insurance policies. This stay is intended to allow for an orderly transition of defense responsibilities from CARE to its insureds.​

All in-force CARE policies are set to terminate either upon the insured securing alternative coverage or 90 days from the notice date, whichever comes first.​

We will continue to monitor this situation and provide any major updates as they become available.

For more information and to access key documents related to the rehabilitation, visit the [Vermont DFR's official page](https://dfr.vermont.gov/care-risk-retention-group-inc) on CARE Risk Retention Group, Inc.

If you have any questions about the rehabilitation order, CARE RRG, or healthcare professional liability insurance, please [click here](mailto:schummar@ethosinsurance.com) to contact an Ethos representative.

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