§ 23-68-106 — Grounds for rehabilitation - Domestic insurers

Arkansas § 23-68-106

• Jurisdiction: Arkansas
• Title: 23

Text

The Insurance Commissioner may apply to the court for an order appointing him or her in his or her official capacity and his or her successors in office as receiver of and directing him or her to rehabilitate a domestic insurer upon one (1) or more of the following grounds: (1) The insurer is impaired or insolvent; (2) The insurer has refused to submit any of its books, records, accounts, or affairs to reasonable examination by the commissioner; (3) The insurer has concealed or removed records or assets or otherwise violated § 23-69-134 ; (4) The insurer has failed to comply with an order of the commissioner to make good an impairment of capital or surplus or both; (5) The insurer has transferred or attempted to transfer substantially its entire property or business, or has entered into any transaction the effect of which is to merge substantially its entire property or business into that of any other insurer without having first obtained the written approval of the commissioner; (6) The insurer has willfully violated its charter or articles of incorporation or any law of this state; (7) The insurer has an officer, director, or manager who has refused to be examined under oath concerning its affairs; (8) The insurer has been or is the subject of an application for the appointment of a receiver, trustee, custodian, or sequestrator of the insurer or its property otherwise than pursuant to the provisions of the Arkansas Insurance Code, but only if the appointment has been made or is imminent and its effect is or would be to oust the courts of this state of jurisdiction hereunder; (9) The insurer has consented to an order through a majority of its directors, stockholders, members, or subscribers; (10) The insurer has failed to pay a final judgment rendered against it in this state upon any insurance contract issued or assumed by it, within thirty (30) days after the judgment became final, or within thirty (30) days after the time for taking an appeal has expired, or within thirty (30) days after dismissal of an appeal before final termination, whichever date is the later; (11) The insurer is in such condition that the further transaction of business would be hazardous financially to its policyholders, creditors, or the public; (12) There is a 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; (13) 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 after notice and hearing by the commissioner to be dishonest or untrustworthy in a way affecting the insurer's business; (14) Control of the insurer, whether by stock ownership or otherwise, and whether direct or indirect, is in a person or persons found after notice and hearing to be untrustworthy; or (15) The insurer has failed to file its annual statement or other financial report required by law within the time allowed by law and, after written demand by the commissioner, has failed to give an adequate explanation immediately.

Legislative History

Acts 1959, No. 148, § 642; A.S.A. 1947, § 66-4805; Acts 1993, No. 901, § 34.