58-29B-39. Rehabilitation futile--Petition for liquidation--Effect--Court to permit directors or insurers to defend.
133 words·~1 min read·
/sd/title-58/chapter-58-29/58-29b-39·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
If the director believes further attempts to rehabilitate an insurer would substantially increase the risk of loss to creditors, policyholders, or the public, or would be futile, the director may petition the circuit court of Hughes County for an order of liquidation. A petition under this section has the same effect as a petition under § 58-29B-41 . The circuit court of Hughes County shall permit the directors of the insurer to take such actions as are reasonably necessary to defend against the petition and may order payment from the estate of the insurer of such costs and other expenses of defense as justice may require.
If the insurer is insolvent, the court shall issue an order for liquidation and shall set a hearing to determine the issues being asserted by the directors.