§ 27-9-3-3 — Rehabilitator; personnel; term; compensation; powers; plan

Indiana § 27-9-3-3

• Jurisdiction: Indiana
• Title 27: INSURANCE
• Art. 9: SUPERVISION; REHABILITATION
• Ch. 3: Formal Proceedings

Text

(a) The commissioner, as rehabilitator, may
appoint one (1) or more special deputies, who shall have all the powers
and responsibilities of the rehabilitator granted under this section. Also,
the commissioner may employ such counsel, clerks, and assistants as
he considers necessary.
(b) With the approval of the court, 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:
(1) fixed by the commissioner; and
(2) paid out of the funds or assets of the insurer.
(c) The persons appointed under this section shall serve at the
pleasure of the commissioner.
(d) In the event that the property of the insurer does not contain
sufficient cash or liquid assets to defray the costs incurred, the
commissioner may advance the costs so incurred out of any
appropriation for the maintenance of the insurance department. Any
amounts so advanced for expenses of administration shall be repaid to
the commissioner for the use of the insurance department out of the
first available money of the insurer.
(e) The rehabilitator may take such action as he considers necessary
or appropriate to reform and revitalize the insurer. The commissioner:
(1) has all the powers of the directors, officers, and managers,
whose authority shall be suspended, except as they are
redelegated by the rehabilitator;
(2) may direct, manage, hire, and discharge employees subject to
any contract rights they may have; and
(3) may deal with the property and business of the insurer.
(f) The rehabilitator may prosecute any action that exists in behalf
of the creditors, members, policyholders, or shareholders of the insurer
against any director or officer of the insurer or any other person or
entity.
(g) The rehabilitator may pursue insurance proceeds for the
negligent, reckless, or fraudulent actions or omissions of the officers
and directors of the insurer. An act or omission of an officer or director
of the insurer during the eighteen (18) months immediately preceding
the date on which an order of rehabilitation is entered may not be used
to avoid coverage or other duties under a policy of insurance covering
directors' and officers' liability.
(h) If the rehabilitator determines that reorganization, consolidation,
conversion, reinsurance, merger, or other transformation of the insurer
is appropriate, he shall prepare a plan to effect those changes.
(i) Upon application of the rehabilitator for approval of the plan, and
after such notice and hearings as the Marion County circuit 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 must 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.
(j) In the case of the life insurer, the plan proposed may include the
imposition of liens upon the policies of company, if all rights of
shareholders are first relinquished. 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.
As added by Acts 1979, P.L.255, SEC.1. Amended by
P.L.167-1986, SEC.3; P.L.72-2016, SEC.23.