North Dakota § 26.1-06.1-16 Grounds for liquidation

North Dakota Statutes

§ 26.1-06.1-16 — Grounds for liquidation

North Dakota § 26.1-06.1-16

Title 26.1Insurance

Ch. 26.1-06.1Insurance Company Rehabilitation and Liquidation

This text of North Dakota § 26.1-06.1-16 (Grounds for liquidation) 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 § 26.1-06.1-16 (2026).

Text

actions as 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.

2.The protection of the interests of insureds, claimants, and the public requires the timely performance of all insurance policy obligations. If the payment of policy obligations is suspended in substantial part for a period of six months at any time after the appointment of the rehabilitator and the rehabilitator has not filed an application for approval of a plan under subsection 4 of section 26.1-06.1-13, the rehabilitator shall petition the court for an order of liquidation on grounds of insolvency.

3.The rehabilitator may at any time petition the district court for an order terminating rehabilitati

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actions as 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.
2. The protection of the interests of insureds, claimants, and the public requires the
timely performance of all insurance policy obligations. If the payment of policy
obligations is suspended in substantial part for a period of six months at any time after
the appointment of the rehabilitator and the rehabilitator has not filed an application for
approval of a plan under subsection 4 of section 26.1-06.1-13, the rehabilitator shall
petition the court for an order of liquidation on grounds of insolvency.
3. The rehabilitator may at any time petition the district court for an order terminating
rehabilitation of an insurer. The 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 such
petition as justice may require. If the district court finds that rehabilitation has been
accomplished and that grounds for rehabilitation under section 26.1-06.1-11 no longer
exist, it shall order that the insurer be restored to possession of its property and the
control of the business. The district court may also make that finding and issue that
order at any time upon its own motion.
26.1-06.1-16. Grounds for liquidation.
The commissioner may petition the district court for an order directing the liquidation of a
domestic insurer or an alien insurer domiciled in this state on the basis:
1. Of any ground for an order of rehabilitation as specified in section 26.1-06.1-11,
whether or not there has been a prior order directing the rehabilitation of the insurer;
2. That the insurer is insolvent; or
3. That the insurer is in such condition that the further transaction of business would be
hazardous, financially or otherwise, to its policyholders, its creditors, or the public.