17:30C-6. Grounds for rehabilitation--domestic insurers
409 words·~2 min read·
/nj/title-17/chapter-30c/17-30c-6·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The commissioner may apply to the court for an order directing him to rehabilitate a domestic insurer upon one or more of the following grounds:
That the insurer
a. Is impaired or insolvent; or
b. Has refused to submit its books, records, accounts or affairs to the reasonable examination of the commissioner; or
c. Has concealed or removed records or assets in violation of regulations which the commissioner may adopt; or
d. Has failed to comply with the commissioner's order, made pursuant to law, to make good an impairment of capital (if a stock insurer) or an impairment of surplus (if a mutual insurer) within the time prescribed by law; or
e. 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 first having obtained the written approval of the commissioner; or
f. Is found, after examination, to be in such condition that its further transaction of business will be hazardous to its policyholders, or to its stockholders, or to its creditors, or to the public; or
g. Has willfully violated its charter or any law of this State; or
h. Has an officer, director, or manager who has unlawfully refused to be examined under oath, concerning its affairs; or
i. Has failed or refused to take such steps as may be necessary to remove from office any officer or director whom the commissioner has found, after notice to and hearing of such insurance company and of such officer or director, to be a dishonest or untrustworthy person; or
j. Has been the subject of an application for the appointment of a receiver, trustee, custodian or sequestrator of the insurer or of its property, otherwise than pursuant to the provisions of this act but only if such appointment has been made or is imminent; or
k. Has consented to such an order through a majority of its directors, stockholders, or policyholders; or
l. Has failed to pay a final judgment rendered against it in any state upon any insurance contract issued or assumed by it, within 30 days after the judgment became final or within 30 days after time for taking an appeal has expired, or within 30 days after dismissal of an appeal before final determination, whichever date is the later.
L.1975, c. 113, s. 6, eff. June 3, 1975.