31A-27a-901. Ancillary conservation of foreign insurers.

373 words·~2 min read·/ut/title-31a/chapter-27a/31a-27a-901

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

(1)The commissioner may initiate an action against a foreign insurer pursuant to Section 31A-27a-201 on any of the grounds stated in that section or on the basis that:

(a)any of the foreign insurer's property is sequestered, garnished, or seized by official action in its domiciliary state or in any other state;

(i)the foreign insurer's certificate of authority to do business in this state is revoked or a certificate of authority is never issued; and

(ii)there is a resident of this state with an unpaid claim or in-force policy; or

(c)it is necessary to enforce a stay under Chapter 28, Guaranty Associations .

(2)If a domiciliary receiver is appointed, the commissioner may initiate an action against a foreign insurer under this section only with the consent of the domiciliary receiver.

(a)An order entered pursuant to this section shall appoint the commissioner as conservator.

(b)The conservator's title to assets shall be limited to the insurer's property and records located in this state.

(a)Notwithstanding Subsection 31A-27a-201(3) , the conservator shall hold and conserve the assets located in this state until:

(i)the commissioner in the insurer's domiciliary state appoints its receiver; or

(ii)an order terminating conservation is entered under Subsection

(7).

(b)Once a domiciliary receiver is appointed, the conservator shall turn over to the domiciliary receiver all property subject to an order under this section.

(5)The conservator may liquidate the property of the insurer that may be necessary to cover the costs incurred in the initiation or administration of a proceeding under this section.

(a)The court in which an action under this section is pending may issue a finding of insolvency or an ancillary liquidation order.

(b)An ancillary liquidation order shall be entered for the limited purposes of:

(i)liquidating assets in this state to pay costs under Subsection

(5); or

(ii)activating applicable guaranty associations in this state to pay valid claims that are not being paid by the insurer.

(7)The conservator may at any time petition the receivership court for an order terminating an order entered under this section.

Enacted by Chapter 309 , 2007 General Session