31A-27a-115. Approval and payment of expenses.

372 words·~2 min read·/ut/title-31a/chapter-27a/31a-27a-115

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

(1)The receiver may pay an expense under a contract, lease, employment agreement, or other arrangement entered into by the insurer before receivership, as the receiver considers necessary for the purposes of this chapter. The receiver:

(a)is not required to pay an expense described in this Subsection

(1)that the receiver determines is not necessary; and

(b)may reject a contract pursuant to Section 31A-27a-113 .

(2)Receivership expenses other than those described in Subsection

(1)shall be paid as follows:

(a)unless the court orders otherwise in the rehabilitation or liquidation order, the receiver may submit a motion pursuant to Section 31A-27a-107 to the receivership court to approve:

(i)the terms of compensation of each special deputy or contractor; or

(ii)any other expense in excess of an amount established by this chapter;

(b)the receiver may, as the receiver considers appropriate, submit a motion to approve any other compensation, anticipated expense, or incurred expense not described in Subsection (2)(a) ;

(c)the receiver may pay as incurred:

(i)an expense not requiring receivership court approval; and

(ii)an expense approved in the rehabilitation or liquidation order; and

(d)the approval of an expense by the receivership court may not prejudice the right of the receiver to seek recovery, recoupment, disgorgement, or reimbursement of a fee based on contract or a cause of action recognized in law or in equity.

(3)On an annual or more frequent basis, the receiver shall submit to the receivership court a report summarizing the expenses incurred in the prior period.

(4)Receivership court approval is not required to pay expenses incurred by the receiver in connection with the appeal of an order of the receivership court.

(5)All expenses of receivership shall be paid from the assets of the insurer, except as provided in this Subsection

(5).

(a)If the property of the insurer does not contain sufficient cash or liquid assets to defray the expenses incurred, the commissioner may advance funds from the account established under Subsection 31A-27a-705(3) .

(b)An amount advanced shall be repaid to the account out of the first available money of the insurer.

Enacted by Chapter 309 , 2007 General Session