§ 27-9-3-9 — Dissolution of corporate existence; authorized acts of liquidator

Indiana § 27-9-3-9

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

Text

(a) The commissioner may petition for an order
dissolving the corporate existence of a domestic insurer, or the United
States branch of an alien insurer domiciled in Indiana, at the time the
commissioner applies for a liquidation order. The Marion County
circuit court shall order dissolution of the corporation upon petition by
the commissioner upon or after the granting of a liquidation order. If
the dissolution has not previously been ordered, the dissolution shall be
effected by operation of law upon the discharge of the liquidator if the
insurer is insolvent but may be ordered by the court upon the discharge
of the liquidator if the insurer is under a liquidation order for some
other reason.
(b) The liquidator may do all acts necessary or appropriate for the
accomplishment of the liquidation, including the following:
(1) Appoint a special deputy to act for the liquidator under this
article, and determine a reasonable compensation for that special
deputy.
(2) Employ employees and insurance producers, legal counsel,
actuaries, accountants, appraisers, consultants, and other
personnel as the liquidator considers necessary to assist in the
liquidation.
(3) Fix the reasonable compensation of employees and insurance
producers, legal counsel, actuaries, accountants, appraisers, and
consultants with the approval of the court.
(4) Pay reasonable compensation to persons appointed and defray
from the funds or assets of the insurer all expenses of taking
possession of, conserving, conducting, liquidating, disposing of,
or otherwise dealing with the business and property of the insurer.
(5) Hold hearings, subpoena witnesses to compel their attendance,
administer oaths, examine any person under oath, and compel any
person to subscribe to the person's testimony after it has been
correctly reduced to writing, and in connection with hearings and
the examination of witnesses require the production of any books,
papers, records, or other documents which the liquidator deems
relevant to the inquiry.
(6) Collect all debts and moneys due and claims belonging to the
insurer, wherever located, and for this purpose:
(A) institute timely action in other jurisdictions, in order to
forestall garnishment and attachment proceedings against those
debts;
(B) do other acts necessary or expedient to collect, conserve, or
protect its assets or property, including the power to sell,
compound, compromise, or assign debts for purposes of
collection upon terms and conditions as the liquidator considers
best; and
(C) pursue any creditor's remedies available to enforce the
liquidator's claims.
(7) Conduct public and private sales of the property of the insurer.
(8) Use assets of the estate of an insurer under a liquidation order
to transfer policy obligations to a solvent assuming insurer, if the
transfer can be arranged without prejudice to applicable priorities
under section 40 of this chapter.
(9) Acquire, hypothecate, encumber, lease, improve, sell, transfer,
abandon, or otherwise dispose of or deal with, any property of the
insurer at its market value or upon such terms and conditions as
are fair and reasonable.
(10) Borrow money on the security of the insurer's assets or
without security and execute and deliver all documents necessary
to that transaction for the purpose of facilitating the liquidation.
(11) Enter into contracts that are necessary to carry out the order
to liquidate, and affirm or disavow any contracts to which the
insurer is a party.
(12) Continue to prosecute and to institute in the name of the
insurer, or in the liquidator's own name, all suits and other legal
proceedings, in Indiana or elsewhere, and abandon the
prosecution of claims the liquidator considers unprofitable to
pursue further.
(13) Prosecute any action that may exist in behalf of the creditors,
members, policyholders, or shareholders of the insurer against any
director or officer of the insurer, or any other person.
(14) 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 petition for liquidation is filed may not be used to avoid
coverage or other duties under a policy of insurance covering
directors' and officers' liability.
(15) Remove all records and property of the insurer to the offices
of the commissioner or to some other place as may be convenient
for the purposes of efficient and orderly execution of the
liquidation.
(16) Deposit in one (1) or more banks in Indiana sums required
for meeting current administration expenses and dividend
distributions.
(17) Invest all sums not currently needed, unless the court orders
otherwise.
(18) File any necessary documents for record in the office of any
recorder of deeds or record office in Indiana or elsewhere where
property of the insurer is located.
(19) Assert all defenses available to the insurer as against third
persons, including statutes of limitation, statutes of frauds, and the
defense of usury.
(20) Exercise and enforce all the rights, remedies, and powers of
any creditor, shareholder, policyholder, or member, including any
power to avoid any transfer or lien that may be given by the
general law and that is not included in sections 14 through 16 of
this chapter.
(21) Intervene in any proceeding wherever instituted that might
lead to the appointment of a receiver or trustee, and act as the
receiver or trustee whenever the appointment is offered.
(22) Enter into agreements with any receiver or commissioner of
any other state relating to the rehabilitation, liquidation,
conservation, or dissolution of an insurer doing business in both
states.
(23) Exercise all powers conferred upon receivers by the laws of
Indiana not inconsistent with this article.
As added by Acts 1979, P.L.255, SEC.1. Amended by
P.L.167-1986, SEC.4; P.L.178-2003, SEC.75; P.L.72-2016,
SEC.24.