§ 10-3-405 — Direct supervision

(1) Any insurance company placed under
direct supervision shall remain under direct supervision until all delinquencies are
remedied, or until the commissioner deems such direct supervision no longer is
necessary or desirable. During the period of direct supervision, the commissioner
may appoint a supervisor other than himself to supervise the company and may
provide that the company may not take any of the following actions without prior
approval in writing of the commissioner or his duly appointed supervisor:

(a) Dispose of, convey, or encumber any of its assets or its business in force;

(b) Withdraw any of its bank accounts;

(c) Lend any of its funds;

(d) Invest any of its property;

(e) Transfer any of its property;

(f) Incur any debt, obligation, or liability;

(g) Merge or consolidate with another company;

(h) Enter into any new reinsurance contract or treaty.

(2) In addition to the power to require prior written approval of any of the
actions set forth in subsection (1) of this section, the commissioner or the
commissioner's duly appointed supervisor may take any further steps necessary to
preserve, protect, and recover any assets or property of an insurance company
under direct supervision.

Legislative History

Source: L. 69: p. 546, � 3. C.R.S. 1963: � 72-29-5. L. 92: Entire section amended, p. 1425, � 7, effective July 1.