§ 7410 — Conduct of delinquency proceedings against insurers not domiciled in this state

New York § 7410

• Jurisdiction: New York
• Law ISC: Insurance
• Art. 74: Rehabilitation, Liquidation, Conservation and Dissolution of Insurers

Text

§ 7410. Conduct of delinquency proceedings against insurers not\ndomiciled in this state. (a) Whenever under the laws of this state an\nancillary receiver is to be appointed in delinquency proceedings for an\ninsurer not domiciled in this state, the court shall appoint the\nsuperintendent as ancillary receiver. The superintendent shall file a\npetition requesting the appointment if he finds that there are\nsufficient assets of such insurer located in this state to justify the\nappointment of an ancillary receiver, or if ten or more persons resident\nin this state having claims against such insurer file a petition with\nthe superintendent requesting the appointment of such ancillary\nreceiver.\n (b) The domiciliary receiver for the purpose of liquidating an insurer\ndomiciled in a reciprocal state, shall be vested by operation of law\nwith the title to all of the property, contracts, and rights of action,\nand all books and records of the insurer located in this state, and\nshall have the immediate right to recover balances due from local agents\nand obtain possession of any books and records of the insurer found in\nthis state. He shall also be entitled to recover the other assets of\nthe insurer located in this state except that upon the appointment of an\nancillary receiver in this state, the ancillary receiver shall during\nthe ancillary receivership proceedings have the sole right to recover\nsuch other assets. The ancillary receiver shall, as soon as practicable,\nliquidate from their respective securities those special deposit claims\nand secured claims which are proved and allowed in the ancillary\nproceedings in this state, and shall pay the necessary expenses of the\nproceedings. All remaining assets he shall promptly transfer to the\ndomiciliary receiver. Subject to the foregoing provisions the ancillary\nreceiver and his deputies shall have the same powers and be subject to\nthe same duties with respect to the administration of such assets, as a\nreceiver of an insurer domiciled in this state.\n (c) The domiciliary receiver of an insurer domiciled in a reciprocal\nstate may sue in this state to recover any assets of such insurer to\nwhich he may be entitled under the laws of this state.\n