§ 27-9-3-5 — Petition for liquidation; termination of rehabilitation

(a) Whenever the commissioner believes further
attempts to rehabilitate an insurer would substantially increase the risk
of loss to creditors, policyholders, or the public, or would be futile, the
commissioner may petition the Marion County circuit court for an
order of liquidation. A petition under this subsection has the same
effect as a petition under section 6 of this chapter. The Marion County
circuit court shall permit the directors of the insurer to take actions that
are reasonably necessary to defend against the petition and may order
payment from the estate of the insurer of such costs and other expenses
of defense as justice may require.
(b) The rehabilitator may at any time petition the Marion County
circuit court for an order terminating rehabilitation of an insurer. The
Marion County circuit court shall also permit the directors of the
insurer to petition the court for an order terminating rehabilitation of
the insurer and may order payment from the estate of the insurer of
such costs and other expenses of the petition as justice may require. If
the Marion County circuit court finds that rehabilitation has been
accomplished and that grounds for rehabilitation under section 1 of this
chapter no longer exist, the court shall order that the insurer be restored
to possession of its property and the control of its business. The Marion
County circuit court may also make that finding and issue that order at
any time upon its own motion.
As added by Acts 1979, P.L.255, SEC.1.