(1)The director may file in the district court of this state a petition alleging, with respect to a domestic insurer:
(a)That any grounds exist that would justify a court order for a formal delinquency proceeding against an insurer under this act;
(b)That the interests of policyholders, creditors, or the public will be endangered by delay; and
(c)The contents of an order deemed necessary by the director.
(2)Upon a filing under subsection (1) of this section, the court may issue forthwith, ex parte and without a hearing, the requested order which shall direct the director to take possession and control of all or a part of the property, books, accounts, documents, and other records of an insurer, and of the premises occupied by it for transaction of its business, and until further order
Free access — add to your briefcase to read the full text and ask questions with AI
(1) The director may file in the district court of this state a petition alleging, with respect to a domestic insurer:
(a) That any grounds exist that would justify a court order for a formal delinquency proceeding against an insurer under this act;
(b) That the interests of policyholders, creditors, or the public will be endangered by delay; and
(c) The contents of an order deemed necessary by the director.
(2) Upon a filing under subsection (1) of this section, the court may issue forthwith, ex parte and without a hearing, the requested order which shall direct the director to take possession and control of all or a part of the property, books, accounts, documents, and other records of an insurer, and of the premises occupied by it for transaction of its business, and until further order of the court enjoin the insurer and its officers, managers, agents, and employees from disposition of its property and from transaction of its business except with the written consent of the director.
(3) The court shall specify in the order what its duration shall be, which shall be such time as the court deems necessary for the director to ascertain the condition of the insurer. On motion of either party or on its own motion, the court may from time to time hold such hearings as it deems desirable after such notice as it deems appropriate, and may extend, shorten, or modify the terms of the seizure order. The court shall vacate the seizure order if the director fails to commence a formal proceeding under this act after having had a reasonable opportunity to do so. An order of the court pursuant to a formal proceeding under this act shall ipso facto vacate the seizure order.
(4) Entry of a seizure order under the provisions of this section shall not constitute an anticipatory breach of any contract of the insurer.
(5) An insurer subject to an ex parte order under the provisions of this section may petition the court at any time after the issuance of such order for a hearing and review of the order. The court shall hold such a hearing and review not more than fifteen (15) days after the request. A hearing under the provisions of this subsection may be held privately in chambers and it shall be so held if the insurer proceeded against so requests.
(6) If, at any time after the issuance of such an order, it appears to the court that any person whose interest is or will be substantially affected by the order did not appear at the hearing and has not been served, the court may order that notice be given. An order that notice be given shall not stay the effect of any order previously issued by the court.