§ 10-3-552 — Ancillary formal proceedings

Colorado § 10-3-552

• Jurisdiction: Colorado
• Title 10: Insurance
• Art.: Regulation of Insurance Companies

Text

(1) If a domiciliary liquidator has
been appointed for an insurer not domiciled in this state, the commissioner may file
a petition with the district court in and for the city and county of Denver requesting
appointment as ancillary receiver in this state:

(a) If the commissioner finds that there are sufficient assets of the insurer
located in this state to justify the appointment of an ancillary receiver; or

(b) If the protection of creditors or policyholders in this state so requires.

(2) The court may issue an order appointing an ancillary receiver in whatever
terms it deems appropriate. The filing or recording of the order with a recorder of
deeds in this state imparts 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.

(3) When a domiciliary liquidator has been appointed in a reciprocal state,
then the ancillary receiver appointed in this state may, whenever necessary, aid and
assist the domiciliary liquidator in recovering assets of the insurer located in this
state. The ancillary receiver shall, as soon as is practicable, liquidate from their
respective securities those special deposit claims and secured claims which are
proved and allowed in the ancillary proceedings in this state, and shall pay the
necessary expenses of the proceedings. The ancillary receiver shall also promptly
transfer all remaining assets, books, accounts, and records to the domiciliary
liquidator. Subject to this section, the ancillary receiver and such ancillary
receiver's deputies shall have the same powers and be subject to the same duties
with respect to the administration of assets as a liquidator of an insurer domiciled in
this state.

(4) When a domiciliary liquidator has been appointed in this state, ancillary
receivers appointed in reciprocal states shall have, as to assets and books,
accounts, and other records in their respective states, rights, duties, and powers
corresponding to those provided in subsection (3) of this section for ancillary
receivers appointed in this state.

Legislative History

Source: L. 92: Entire part R&RE, p. 1481, � 14, effective July 1.