North Dakota § 26.1-06.1-09 Court's seizure order

North Dakota Statutes

§ 26.1-06.1-09 — Court's seizure order

North Dakota § 26.1-06.1-09

Title 26.1Insurance

Ch. 26.1-06.1Insurance Company Rehabilitation and Liquidation

This text of North Dakota § 26.1-06.1-09 (Court's seizure order) is published on Counsel Stack Legal Research, covering North Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

N.D. Cent. Code § 26.1-06.1-09 (2026).

Text

1.The commissioner may file in the district court of this state a petition alleging, with respect to a domestic insurer:

a.That grounds exist which justify a court order for a formal delinquency proceeding against an insurer under this chapter;

b.That the interests of policyholders, creditors, or the public will be endangered by delay; and

c.The contents of an order deemed necessary by the commissioner.

2.Upon a filing under subsection 1, the court may issue forthwith, ex parte, and without a hearing the requested order which shall direct the commissioner to take possession and control of all or a part of the property, books, accounts, documents, and other records of an insurer, and of the premises occupied by it for transaction of its business; and, until further order of the court,

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1. The commissioner may file in the district court of this state a petition alleging, with
respect to a domestic insurer:
a. That grounds exist which justify a court order for a formal delinquency proceeding
against an insurer under this chapter;
b. That the interests of policyholders, creditors, or the public will be endangered by
delay; and
c. The contents of an order deemed necessary by the commissioner.
2. Upon a filing under subsection 1, the court may issue forthwith, ex parte, and without a
hearing the requested order which shall direct the commissioner to take possession
and control of all or a part of the property, books, accounts, documents, and other
records of an insurer, and of the premises occupied by it for transaction of its business;
and, until further order of the court, enjoin the insurer and its officers, managers,
agents, and employees from disposition of its property and from the transaction of its
business except with the written consent of the commissioner.
3. The court shall specify in the order the duration of the order which shall be such time
as the court deems necessary for the commissioner to ascertain the condition of the
insurer. On motion of either party or on its own motion, the court may from time to time
hold such hearings as it deems necessary after such notice as it deems appropriate,
and may modify the terms or duration of the seizure order. The court shall vacate the
seizure order if the commissioner fails to commence a formal proceeding under this
chapter after having had a reasonable opportunity to do so. An order of the court
pursuant to a formal proceeding under this chapter shall ipso facto vacate the seizure
order.

4. Entry of a seizure order under this section does not constitute an anticipatory breach
of any contract of the insurer.
5. An insurer subject to an ex parte order under this section may petition the court at any
time after the issuance of the order for a hearing and review of the order. The court
shall hold a hearing and review not more than fifteen days after the request. A hearing
under this subsection may be held privately in chambers and it must be so held if the
insurer proceeded against so requests.
6. If, at any time after the issuance of a seizure order under this section, it appears to the
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 court may order that notice be
given. An order that notice be given does not stay the effect of any order previously
issued by the court.