(a)Every transfer made, or suffered, and
every obligation incurred by an insurer within one (1) year before the
filing of a successful petition for rehabilitation or liquidation under IC 27-9 is fraudulent as to then existing and future creditors if made or
incurred without fair consideration, or with actual intent to hinder,
delay, or defraud either existing or future creditors.
(b)A transfer made or an obligation incurred by an insurer ordered
to be rehabilitated or liquidated under IC 27-9, which is fraudulent
under this section, may be avoided by the receiver, except:
(1)as to a person who in good faith is a purchaser, lienor, or
obligee for a present fair equivalent value; and
(2)that any purchaser, lienor, or obligee, who in good faith has
given a consideration less than fair for
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(a) Every transfer made, or suffered, and
every obligation incurred by an insurer within one (1) year before the
filing of a successful petition for rehabilitation or liquidation under IC 27-9 is fraudulent as to then existing and future creditors if made or
incurred without fair consideration, or with actual intent to hinder,
delay, or defraud either existing or future creditors.
(b) A transfer made or an obligation incurred by an insurer ordered
to be rehabilitated or liquidated under IC 27-9, which is fraudulent
under this section, may be avoided by the receiver, except:
(1) as to a person who in good faith is a purchaser, lienor, or
obligee for a present fair equivalent value; and
(2) that any purchaser, lienor, or obligee, who in good faith has
given a consideration less than fair for such transfer, lien, or
obligation, may retain the property, lien, or obligation as security
for repayment.
The court may, on due notice, order any transfer or obligation to be
preserved for the benefit of the estate, and in that event, the receiver
shall succeed to and may enforce the rights of the purchaser, lienor, or
obligee.
(c) A transfer of property, other than real property, is made or
suffered when it becomes so far perfected that no subsequent lien
obtainable by legal or equitable proceedings on a simple contract could
become superior to the rights of the transferee under section 18 of this
chapter.
(d) A transfer of real property is made or suffered when it becomes
so far perfected that no subsequent bona fide purchaser from the
insurer could obtain rights superior to the rights of the transferee.
(e) A transfer that creates an equitable lien is not perfected if there
are available means by which a legal lien could be created.
(f) Any transfer not perfected before the filing of a petition for
liquidation shall be treated as if it were made immediately before the
filing of the successful petition.
(g) The provisions of subsections (b) through (f) apply whether or
not there are or were creditors who might have obtained any liens or
persons who might have become bona fide purchasers.
(h) Any transaction of the insurer with a reinsurer is fraudulent and
may be avoided by the receiver under section 13 of this chapter if:
(1) the transaction consists of the termination, adjustment, or
settlement of a reinsurance contract in which the reinsurer is
released from any part of its duty to pay the originally specified
share of losses that had occurred before the time of the
transaction, unless the reinsurer gives a present fair equivalent
value for the release; and
(2) any part of the transaction took place within one (1) year
before the date of filing of the petition through which the
receivership was commenced.
As added by Acts 1979, P.L.255, SEC.1.