§ 26-29-230 — Injunction; liquidation; receivership of domestic society

Wyoming § 26-29-230

• Jurisdiction: Wyoming
• Title 26: Insurance Code
• Ch. 29: FRATERNAL BENEFIT SOCIETIES

Text

(a) The commissioner shall at once provide written
notification to a society when the commissioner upon
investigation finds that a domestic society:
(i) Has exceeded its powers;
(ii) Has failed to comply with any provision of this
chapter;
(iii) Is not fulfilling its contracts in good faith;
(iv) Has a membership of less than four hundred (400)
after an existence of one (1) year or more; or
(v) Is conducting business fraudulently or in a
manner hazardous to its members, creditors, the public or the
business.
(b) The commissioner shall notify the society of any
deficiency specified in subsection (a) of this section and state
in writing the reasons why he believes the deficiency exists.
The commissioner shall at once issue a written notice to the
society requiring that the deficiency be corrected. After the
notice the society has thirty (30) days in which to comply with
the commissioner's request for correction, and if the society
fails to comply, the commissioner shall notify the society of
its findings of noncompliance and require the society to show
cause on a date named why it should not be enjoined from
carrying on any business until the violation complained of shall
have been corrected, or why an action in quo warranto should not
be commenced against the society.
(c) If on that date the society does not present good and
sufficient reasons why it should not be so enjoined or why such
action should not be commenced, the commissioner may present the
facts relating thereto to the attorney general who shall, if he
deems the circumstances warrant, commence an action to enjoin
the society from transacting business or in quo warranto.
(d) If after a full hearing it appears that the society
should be enjoined from transacting business or liquidated or a
receiver appointed, the court shall enter the necessary order.
No society enjoined under this subsection may do business until:
(i) The commissioner finds that the violation
complained of has been corrected;
(ii) The costs of the action have been paid by the
society if the court finds that the society was in default as
charged;
(iii) The court has dissolved its injunction; and
(iv) The commissioner has reinstated the certificate
of authority.
(e) If the court orders the society liquidated, it shall
be enjoined from carrying on any further business, whereupon the
receiver of the society shall proceed at once to take possession
of the books, papers, money and other assets of the society and,
under the direction of the court, proceed forthwith to close the
affairs of the society and to distribute its funds to those
entitled thereto.
(f) No action under this section shall be recognized in
any court of this state unless brought by the attorney general
upon request of the commissioner. Whenever a receiver is to be
appointed for a domestic society, the court shall appoint the
commissioner as receiver.
(g) The provisions of this section relating to hearing by
the commissioner, action by the attorney general at the request
of the commissioner, hearing by the court, injunction and
receivership shall be applicable to a society which shall
voluntarily determine to discontinue business.