(1)The commissioner as
rehabilitator may appoint one or more special deputies, who shall have all the
powers and responsibilities of the rehabilitator granted under this section, and the
commissioner may employ such counsel, clerks, and assistants as deemed
necessary. The compensation of the special deputy, counsel, clerks, and assistants
and all expenses of taking possession of the insurer and of conducting the
proceedings shall be fixed by the commissioner, subject to the approval of the
court, and shall be paid out of the funds or assets of the insurer. The persons
appointed under this section shall serve at the pleasure of the commissioner. The
commissioner, as rehabilitator, may, with the approval of the court, appoint an
advisory committee of policyholders, claimants, or o
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(1) The commissioner as
rehabilitator may appoint one or more special deputies, who shall have all the
powers and responsibilities of the rehabilitator granted under this section, and the
commissioner may employ such counsel, clerks, and assistants as deemed
necessary. The compensation of the special deputy, counsel, clerks, and assistants
and all expenses of taking possession of the insurer and of conducting the
proceedings shall be fixed by the commissioner, subject to the approval of the
court, and shall be paid out of the funds or assets of the insurer. The persons
appointed under this section shall serve at the pleasure of the commissioner. The
commissioner, as rehabilitator, may, with the approval of the court, appoint an
advisory committee of policyholders, claimants, or other creditors including
guaranty associations should such a committee be deemed necessary. Such
committee shall serve at the pleasure of the commissioner and shall serve without
compensation other than reimbursement for reasonable travel and per diem living
expenses. No other committee of any nature shall be appointed by the
commissioner or by the court in rehabilitation proceedings conducted under this
part 5.
(2) The rehabilitator may take such action as the rehabilitator deems
necessary or appropriate to reform and revitalize the insurer, and shall have all the
powers of the insurer's directors, officers, and managers, whose authority shall be
suspended except insofar as they are redelegated by the rehabilitator. The
rehabilitator shall have full power to direct, manage, hire, and discharge employees
subject to any contract rights they may have, and to deal with the property and
business of the insurer.
(3) If it appears to the rehabilitator that there has been criminal or tortious
conduct or breach of any contractual or fiduciary obligation detrimental to the
insurer by any officer, manager, agent, broker, employee, or other person, the
rehabilitator may pursue all appropriate legal remedies on behalf of the insurer.
(4) If the rehabilitator determines that reorganization, consolidation,
conversion, reinsurance, merger, or other transformation of the insurer is
appropriate, the rehabilitator shall prepare a plan to effect such changes. Upon
application of the rehabilitator for approval of the plan, and after such notice and
hearings as the court may prescribe, the court may either approve or disapprove the
plan proposed, or may modify it and approve it as modified. Any plan approved
under this section shall be, in the judgment of the court, fair and equitable to all
parties concerned. If the plan is approved, the rehabilitator shall carry out the plan.
In the case of a life insurer, if all rights of shareholders are first relinquished, the
plan proposed may include the imposition of liens upon the policies of the company.
A plan for a life insurer may also propose imposition of a moratorium upon loan and
cash surrender rights under policies, for such period and to such an extent as may
be necessary.
(5) The rehabilitator shall have the power under sections 10-3-525 and 10-3-526 to avoid fraudulent transfers.