20-648. Receivership liquidation fund; purpose; deposit; expenses of receivership; deputy receiver; powers and duties

270 words·~1 min read·/az/title-20/20-648

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

A. The director shall appoint a deputy receiver to administer the conservation, rehabilitation or liquidation of an insurer pursuant to this article.

B. A receivership liquidation fund is established. The deputy receiver shall file a petition with the court authorizing the deputy receiver to deposit in the fund ten per cent of the insolvent insurer's deposit required under section 20-213.

C. The common administrative costs of the receiverships incurred by the deputy receiver are payable from the receivership liquidation fund. The director shall by order after a hearing describe the nature of administrative costs common to every receivership in the operation of the receivership office that are payable from this fund. Costs may include the compensation of special deputies, clerks or assistants but shall not include attorney fees.

D. The deputy receiver shall prepare and file with the court a quarterly financial report listing expenditures and the balance remaining in the fund allocable to the respective insurer. On termination of a receivership, the deputy receiver shall remit any balance remaining in the fund that is allocated to a particular insurer to the separate account for that receivership or to the person entitled to the monies. If the common administrative expenses allocable to a receivership exceed the initial ten per cent deposit to the fund, the deputy receiver may petition the court to authorize an amount, equal to the excess, to be deposited in the fund.

E. On notice from the director, the state treasurer shall invest and divest monies in the receivership liquidation fund as provided by section 35-313, and monies earned from investment shall be credited to the fund.