20-650. Recovery of shareholder liability

142 words·~1 min read·/az/title-20/20-650

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

A. The receiver of an insurer may file a claim in the receivership proceeding to recover the liability of shareholders under article XIV, section 11, Constitution of Arizona.

B. Any amount recovered in an action under this section shall be distributed in the same manner provided by law for the distribution of general assets of the estate.

C. The receiver shall bring an action pursuant to subsection A of this section, within four years of the entry of an order of liquidation or other order fixing the rights and liabilities of shareholders under section 20-635.

D. In an action pursuant to this section:

1. The defendant is not entitled to offset obligations of the insurer to the defendant, except that a defendant may file a claim with the receiver for those obligations.

2. The receiver shall recover costs and reasonable attorney fees.