20-624. Conduct of delinquency proceedings against domestic and alien insurers

342 words·~2 min read·/az/title-20/20-624

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

A. If under this article a receiver is to be appointed in delinquency proceedings for a domestic or alien insurer, the court shall appoint the director as receiver. The court shall order the receiver to take immediate possession of the assets of the insurer and to administer them under the orders of the court.

B. As domiciliary receiver, the director is vested by operation of law with the title to all of the property, contracts and rights of action and all of the books and records of the insurer, wherever located, as of the date of entry of the order directing the director to rehabilitate or liquidate a domestic insurer or to liquidate the United States branch of an alien insurer domiciled in this state, and the director shall have the right to recover the assets and reduce them to possession, except that ancillary receivers in reciprocal states, as to assets located in their respective states, shall have the rights and powers that are prescribed in this article for ancillary receivers appointed in this state as to assets located in this state.

C. The recording of a certified copy of the order directing possession to be taken in the office of the county recorder of the county where the proceedings are pending shall impart the same notice as would be imparted by a deed, a bill of sale or any other evidence of title duly recorded or filed.

D. The director as domiciliary receiver shall be responsible for the proper administration of all assets coming into the director's possession or control. The court may at any time require a bond from the director or the director's deputies if deemed desirable for the protection of the assets.

E. On taking possession of the assets of an insurer, the domiciliary receiver, subject to the direction of the court, shall immediately proceed to conduct the business of the insurer or to take such steps as are authorized by this article for the purpose of rehabilitating, liquidating or conserving the affairs or assets of the insurer.