20-615. Grounds for rehabilitation of domestic insurers
414 words·~2 min read·
/az/title-20/20-615A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The director may apply to the court for an order appointing the director as receiver of and directing the director to rehabilitate a domestic insurer upon one or more of the following grounds:
1. That the insurer is impaired or insolvent.
2. That the insurer has refused to submit its books, records, accounts or affairs to reasonable examination by the director.
3. That the insurer has failed to comply with an order of the director to make good an impairment of capital or surplus, or both.
4. That the insurer has transferred or attempted to transfer substantially its entire property or business, or has entered into any transaction the effect of which is to merge substantially its entire property or business in that of any other insurer without having first obtained the written approval of the director.
5. That the insurer has wilfully violated its charter or any law of this state.
6. That the insurer has an officer, director or manager who has refused to be examined under oath concerning its affairs, for which purpose the director is authorized to conduct and to enforce by all appropriate and available means any such examination under oath in any other state or territory of the United States, in which any such officer, director or manager may then presently be, to the full extent permitted by the laws of such other state or territory, this special authorization considered.
7. That the insurer has been the subject of an application for the appointment of a receiver, trustee, custodian or sequestrator of the insurer or its property otherwise than pursuant to the provisions of this title, but only if such appointment has been made or is imminent and its effect is or would be to oust the courts of this state of jurisdiction under this section.
8. That the insurer has consented to such an order through a majority of its directors, stockholders, members or subscribers.
9. That the insurer has failed to pay a final judgment rendered against it in this state upon any insurance contract issued or assumed by it, within thirty days after the judgment became final or within thirty days after the time for taking an appeal has expired, or within thirty days after dismissal of an appeal before final termination, whichever date is later.
10. That an authorized control level event or mandatory control level event has occurred with respect to the insurer as prescribed in chapter 2, article 12 of this title.