31A-27a-304. Termination of rehabilitation.

259 words·~1 min read·/ut/title-31a/chapter-27a/31a-27a-304

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

(a)The rehabilitator may move for an order of liquidation whenever the rehabilitator believes further attempts to rehabilitate an insurer would:

(i)substantially increase the risk of loss to creditors, policyholders, or the public; or

(ii)be futile.

(b)In accordance with Section 31A-27a-305 , the rehabilitator or the rehabilitator's designated representative shall coordinate with an affected guaranty association and any national association of guaranty associations to plan for transition to liquidation.

(2)The rehabilitator shall petition the receivership court for an order of liquidation or seek an order, on good cause shown, for a longer suspension period if:

(a)the payment of a policy obligation is suspended in substantial part for a period of six months at any time after the appointment of the rehabilitator; and

(b)the rehabilitator has not filed an application for approval of a plan under Section 31A-27a-303 .

(a)The receivership court may enter an order terminating rehabilitation of an insurer:

(i)on petition from the rehabilitator, which may be made at any time;

(ii)on petition from the directors of the insurer, which may be made at any time; or

(iii)on the receivership court's own motion.

(b)Subject to Section 31A-27a-801 , if the receivership court finds that rehabilitation is accomplished and that grounds for rehabilitation under Section 31A-27a-207 no longer exist, the receivership court shall order that the insurer be restored to:

(i)title and possession of its property; and

(ii)the control of the business.

Enacted by Chapter 309 , 2007 General Session