§ 27-9-2-2 — Petition; orders

Indiana § 27-9-2-2

• Jurisdiction: Indiana
• Title 27: INSURANCE
• Art. 9: SUPERVISION; REHABILITATION
• Ch. 2: Summary Proceedings

Text

(a) The commissioner may file in the Marion
County circuit court a petition alleging, with respect to a domestic
insurer:
(1) that there exist grounds that justify a court order for a formal
delinquency proceeding against the insurer under IC 27-9;
(2) that the interests of policyholders, creditors, or the public will
be endangered by delay; and
(3) other matters the commissioner considers necessary.
(b) Upon a filing under subsection (a), the Marion County circuit
court may issue, ex parte, and without a hearing, the requested order
that must:
(1) Direct the commissioner to take possession and control any
part of the property, books, accounts, documents, and other
records of an insurer.
(2) Direct the commissioner to take possession of the premises
occupied by the insurer for transaction of its business.
(3) Until further order of the Marion County circuit 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 commissioner.
(c) The Marion County circuit court shall specify the order's
duration, which shall be such time as the court considers necessary for
the commissioner to determine the condition of the insurer. On motion
of either party or on its own motion, the Marion County circuit court
may hold hearings as it considers desirable after giving notice as it
considers appropriate, and may extend, shorten, or modify the terms of
the seizure order. The Marion County circuit court shall vacate the
seizure order if the commissioner fails to commence a formal
proceeding under IC 27-9 after having had a reasonable opportunity to
do so. An order of the Marion County circuit court under a formal
proceeding under IC 27-9 shall ipso facto vacate the seizure order.
(d) Entry of a seizure order under this section does not constitute an
anticipatory breach of any contract of the insurer.
(e) An insurer subject to an ex parte order under this section may
petition the Marion County circuit court at any time after the issuance
of the order for a hearing and review of the order. The Marion County
circuit court shall hold a hearing and review not more than fifteen (15)
days after the request. A hearing under this subsection may be held
privately in chambers, and the hearing must be held in chambers if the
petitioning insurer requests it.
(f) If, at any time after the issuance of an order, it appears to the
Marion County circuit 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 Marion County circuit court may order notice to
be given to that person. An order that notice be given does not stay the
effect of any order previously issued by the court.
As added by Acts 1979, P.L.255, SEC.1.