§ 26.1-06.1-13 — Powers and duties of the rehabilitator

North Dakota § 26.1-06.1-13

• Jurisdiction: North Dakota
• Title 26.1: Insurance
• Ch. 26.1-06.1: Insurance Company Rehabilitation and Liquidation

Text

1. The commissioner as rehabilitator may appoint one or more special deputies, who
shall have all the powers and responsibilities of the rehabilitator granted under this
section, and the commissioner may employ such counsel, clerks, and assistants as
deemed necessary. The compensation of the special deputy, counsel, clerks, and
assistants and all expenses of taking possession of the insurer and of conducting the
proceedings must be fixed by the commissioner, with the approval of the court and

must be paid out of the funds or assets of the insurer. The commissioner, as
rehabilitator, may, with the approval of the court, appoint an advisory committee of
policyholders, claimants, or other creditors, including guaranty associations, should
such a committee be deemed necessary. The committee shall serve at the pleasure of
the commissioner and shall serve without compensation other than reimbursement for
reasonable travel and per diem living expenses. No other committee of any nature
may be appointed by the commissioner or the court in rehabilitation proceedings
conducted under this chapter.
2. 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 must be repaid to the
commissioner for the use of the insurance department out of the first available money
of the insurer.
3. The rehabilitator may take such action deemed necessary or appropriate to reform and
revitalize the insurer. The rehabilitator shall have all the powers of the directors,
officers, and managers, whose authority must be suspended, except as they are
redelegated by the rehabilitator. The rehabilitator shall have full power to direct and
manage, to hire, and discharge employees subject to any contract rights they may
have, and to deal with the property and business of the insurer.
4. If it appears to the rehabilitator that there has been criminal or tortious conduct, or
breach of any contractual or fiduciary obligation detrimental to the insurer by any
officer, manager, insurance producer, employee, or other person, the rehabilitator may
pursue all appropriate legal remedies on behalf of the insurer.
5. If it is determined that reorganization, consolidation, conversion, reinsurance, merger,
or other transformation of the insurer is appropriate, the rehabilitator shall prepare a
plan to effect such changes. Upon application of the rehabilitator for approval of the
plan, and after such notice and hearings as the 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. In the case of a life insurer, the plan proposed may include the
imposition of liens upon the policies of the 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.
6. The rehabilitator shall have the power under sections 26.1-06.1-25 and 26.1-06.1-26
to avoid fraudulent transfers.