§ 38-27-920 — Liquidation of property of alien or foreign insurers.

(a) If no domiciliary receiver has been appointed, the director or his designee may apply to the circuit court by verified petition for an order directing him to liquidate the assets found in this State of a foreign insurer or an alien insurer not domiciled in this State, on any of the following grounds: (1) any of the grounds in Section 38-27-310 or 38-27-360; or (2) any of the grounds specified in items (2) through (4) of subsection (a) of Section 38-27-910. (b) When an order is sought under subsection (a) of this section, the court shall cause the insurer to be given reasonable notice and time to respond. (c) If it appears to the court that the best interests of creditors, policyholders, and the public require, the court may issue an order to liquidate in whatever terms it considers appropriate. The filing or recording of the order with the clerk of court or the register of deeds of the county in which the principal business of the company is located or the county in which its principal office or place of business is located imparts the same notice which a deed, bill of sale, or other evidence of title duly filed or recorded with that office would have imparted. (d) If a domiciliary liquidator is appointed in a reciprocal state while a liquidation is proceeding under this section, the liquidator under this section must thereafter act as ancillary receiver under Section 38-27-940. If a domiciliary liquidator is appointed in a nonreciprocal state while a liquidation is proceeding under this section, the liquidator under this section may petition the court for permission to act as ancillary receiver under Section 38-27-940. (e) On the same grounds as are specified in subsection (a) of this section, the director or his designee may petition any appropriate federal district court to be appointed receiver to liquidate that portion of the insurer's assets and business over which the court will exercise jurisdiction or any lesser part thereof that the director or his designee considers desirable for the protection of the policyholders and creditors in this State. (f) may order the director or his designee, when he has liquidated the assets of a foreign or alien insurer under this section, to pay claims of residents of this State against the insurer under such rules as to the liquidation of insurers under this chapter as are otherwise compatible with the provisions of this section.

Legislative History

HISTORY: Former 1976 Code SECTION 38-5-2420 [1982 Act No. 384, SECTION 51] recodified as SECTION 38-27-920 by 1987 Act No. 155, SECTION 1; 1993 Act No. 181, SECTION 627; 1997 Act No. 34, SECTION 1.