645.31 Grounds for rehabilitation.
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/wi/chapter-645/645-31-2A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
645.31 Grounds for rehabilitation. The commissioner may apply by verified petition to the circuit court for Dane County or for the county in which the principal office of the insurer is located for an order directing rehabilitation of a domestic insurer or an alien insurer domiciled in this state on any one or more of the following grounds:
(1)Any ground on which the commissioner may apply for an order of liquidation under s. 645.41 , whenever he or she believes that the insurer may be successfully rehabilitated without substantial increase in the risk of loss to creditors of the insurer or to the public.
(2)That the commissioner has reasonable cause to believe that there has been embezzlement from the insurer, wrongful sequestration or diversion of the insurer’s assets, forgery or fraud affecting the insurer or other illegal conduct in, by or with respect to the insurer, that if established would endanger assets in an amount threatening the solvency of the insurer.
(3)That information coming into the commissioner’s possession has disclosed substantial and not adequately explained discrepancies between the insurer’s records and the most recent annual report or other official company reports.
(4)That the insurer has failed to remove any person who in fact has executive authority in the insurer, whether an officer, manager, general agent, employee or other person, if the person has been found by the commissioner after notice and hearing to be dishonest or untrustworthy in a way affecting the insurer’s business.
(5)That control of the insurer, whether by stock ownership or otherwise, and whether direct or indirect, is in one or more persons who are dishonest or untrustworthy.