§ 10-3-501 — Legislative declaration - intents and purposes

(1) This part 5
shall not be interpreted to limit the powers granted the commissioner by other
provisions of law.

(2) This part 5 shall be liberally construed to effect the purpose stated in
subsection (3) of this section.

(3) The purpose of this part 5 is to protect the interests of insureds,
claimants, creditors, and the public generally, with minimum interference with the
normal prerogatives of the owners and managers of insurers, through:

(a) Early detection of any potentially dangerous condition in an insurer, and
prompt application of appropriate corrective measures;

(b) Improved methods for rehabilitating insurers, involving the cooperation
and management expertise of the insurance industry;

(c) Enhanced efficiency and economy of liquidation, through clarification of
the law, to minimize legal uncertainty and litigation;

(d) Equitable apportionment of any unavoidable loss;

(e) Lessening the problems of interstate rehabilitation and liquidation of
insurers by facilitating cooperation between states in the liquidation process and by
extending the scope of personal jurisdiction over debtors of insurers outside this
state;

(f) Regulation of the insurance business by means of laws relating to
delinquency procedures and substantive rules relating to the insurance business
generally; and

(g) The provision of a comprehensive scheme for the rehabilitation and
liquidation of insurance companies and those subject to this part 5 as part of the
regulation of the business of insurance, the insurance industry, and insurers in this
state.

(4) The general assembly finds, determines, and declares that proceedings
in cases of insurer insolvency and delinquency are an integral aspect of the
business of insurance and are of vital public interest and concern.

Legislative History

Source: L. 92: Entire part R&RE, p. 1428, � 14, effective July 1.