60B.20 GROUNDS FOR LIQUIDATION.

608 words·~3 min read·/mn/chapter-60/60b-20

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

The commissioner may apply by verified petition to the District Court for Ramsey County or for the county in which the principal office of the insurer is located for an order to liquidate a domestic insurer or an alien insurer domiciled in this state on any one or more of the following grounds:

(1)any ground on which the commissioner may apply for an order of rehabilitation under section 60B.15 , whenever the commissioner believes that attempts to rehabilitate the insurer would substantially increase the risk of loss to its creditors, its policyholders, or the public, or would be futile, or that rehabilitation would serve no useful purpose;

(2)that the insurer is or is about to become insolvent;

(3)that the insurer has not transacted the business for which it was organized or incorporated during the previous 12 months or has transacted only a token such business during that period, although authorized to do so throughout that period, or that more than 12 months after incorporation it has failed to become authorized to do the business for which it was organized or incorporated;

(4)that the insurer has commenced, or within the previous year has attempted to commence, voluntary dissolution or liquidation otherwise than as provided in section 60B.04, subdivision 3 in the case of a solvent insurer;

(5)that the insurer has concealed records or assets from the commissioner or improperly removed them from the jurisdiction, or the commissioner believes that the insurer is about to do so;

(6)that the insurer does not satisfy the requirements that would be applicable if it were seeking initial authorization in this state to do the business for which it was organized or incorporated, except for:

(i)requirements that are intended to apply only at the time the initial authorization to do business is obtained, and not thereafter; and

(ii)requirements that are expressly made inapplicable by the laws establishing the requirements;

(7)that the holders of two-thirds of the shares entitled to vote, or two-thirds of the members or policyholders entitled to vote in an insurer controlled by its members or policyholders, have consented to a petition;

(8)in the context of a health maintenance organization, "insurer" when used in clauses

(1)to

(7)means "health maintenance organization." In addition to the grounds in clauses

(1)to (7), any one of the following constitutes grounds for liquidation of a health maintenance organization:

(i)the health maintenance organization is unable or is expected to be unable to meet its debts as they become due;

(ii)grounds exist under section 62D.042, subdivision 7 ;

(iii)the health maintenance organization's liabilities exceed the current value of its assets, exclusive of intangibles and, where the guaranteeing organization's financial condition no longer meets the requirements of sections 62D.041 and 62D.042 , exclusive of any deposits, letters of credit, or guarantees provided by any guaranteeing organization under chapter 62D;

(iv)within the last year the health maintenance organization has failed, and the commissioner of health expects failure to continue in the future, to make comprehensive medical care adequately available and accessible to its enrollees and the health maintenance organization has not successfully implemented a plan of corrective action pursuant to section 62D.121, subdivision 7 ; and

(v)within the last year the directors or officers of the health maintenance organization willfully violated the requirements of section 317A.251 , or having become aware within the previous year of an unintentional or willful violation of section 317A.251 , have failed to take all reasonable steps to remedy the situation resulting from the violation and to prevent the same violation in the future.