§ 58-29B-35 — Rehabilitator's plan for transformation--Application and grounds for approval--Procedure upon approval.

If the rehabilitator determines that reorganization, consolidation, conversion, reinsurance, merger, sale, or other transformation of the insurer is appropriate, he 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 shall 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. The rehabilitator may under §§ 58-29B-61 to 58-29B-65 , inclusive, avoid fraudulent transfers.

Legislative History

SL 1989, ch 436, § 35; SL 1991, ch 404, § 4.