§ 10-3-512 — Rehabilitation orders

(1) An order to rehabilitate the business of
a domestic insurer or an alien insurer domiciled in this state shall appoint the
commissioner as the rehabilitator and shall direct the rehabilitator forthwith to take
possession of the assets of the insurer and to administer such assets under the
general supervision of the court. The filing or recording of the order with the clerk
of the district court in and for the city and county of Denver or with the recorder of
deeds of the county in which the principal business of the company is conducted or
the county in which its principal office or place of business is located shall impart
the same notice as would be imparted by a deed, bill of sale, or other evidence of
title duly filed or recorded with such recorder of deeds. The order to rehabilitate the
insurer shall by operation of law vest title to all assets of the insurer in the
rehabilitator.

(2) Any order issued under this section shall require accounting to the court
by the rehabilitator. Accounting shall be at such intervals as the court specifies in
its order, but no less frequently than semiannually. Each accounting shall include a
report concerning the rehabilitator's opinion as to the likelihood that a plan under
section 10-3-513 (4) will be prepared by the rehabilitator and the timetable for
doing so.

(3) Entry of an order of rehabilitation shall not constitute an anticipatory
breach of any contract of the insurer, nor shall it be a basis for retroactive
revocation or retroactive cancellation of any contract of the insurer, unless such
revocation or cancellation is done by the rehabilitator pursuant to section 10-3-513.

Legislative History

Source: L. 92: Entire part R&RE, p. 1439, � 14, effective July 1.