§ 26.1-06.1-52 — Ancillary formal proceedings

North Dakota § 26.1-06.1-52

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

Text

2. If a domiciliary liquidator is appointed for an insurer not domiciled in a reciprocal state,
the commissioner of this state is vested by operation of law with the title to all of the
property, contracts and right of action, and all of the books, accounts, and other
records of the insurer located in this state, at the same time that the domiciliary
liquidator is vested with title in the domicile. The commissioner of this state may
petition for a conservation or liquidation order under section 26.1-06.1-49 or
26.1-06.1-50, or for an ancillary receivership under section 26.1-06.1-52, or after
approval by the district court may transfer title to the domiciliary liquidator, as the
interests of justice and the equitable distribution of the assets require.
3. Claimants residing in this state may file claims with the liquidator or ancillary receiver,
if any, in this state or with the domiciliary liquidator, if the domiciliary law permits. The
claims must be filed on or before the last date fixed for the filing of claims in the
domiciliary liquidation proceedings.
26.1-06.1-52. Ancillary formal proceedings.
1. If a domiciliary liquidator has been appointed for an insurer not domiciled in this state,
the commissioner may file a petition with the district court requesting appointment as
ancillary receiver in this state:
a. If the commissioner finds that there are sufficient assets of the insurer located in
this state to justify the appointment of an ancillary receiver; or
b. If the protection of creditors or policyholders in this state so requires.
2. The court may issue an order appointing an ancillary receiver in whatever terms it shall
deem appropriate. The filing or recording of the order with the recorder in this state
imparts that same notice as a deed, bill of sale, or other evidence of title duly filed or
recorded with that recorder.
3. When a domiciliary liquidator has been appointed in a reciprocal state, the ancillary
receiver appointed in this state may, whenever necessary, aid and assist the
domiciliary liquidator in recovering assets of the insurer located in this state. The
ancillary receiver shall, as soon as practicable, liquidate from their respective
securities those special deposit claims and secured claims which are proved and
allowed in the ancillary proceedings in this state, and shall pay the necessary
expenses of the proceedings. The ancillary receiver shall promptly transfer all
remaining assets, books, accounts, and records to the domiciliary liquidator. Subject to
this section, the ancillary receiver and deputies of the ancillary receiver shall have the
same powers and be subject to the same duties with respect to the administration of
assets as a liquidator of an insurer domiciled in this state.
4. When a domiciliary liquidator has been appointed in this state, ancillary receivers
appointed in reciprocal states shall have, as to assets and books, accounts, and other

records in their respective states, corresponding rights, duties, and powers to those
provided in subsection 3 for ancillary receivers appointed in this state.