Wyoming § 26-44-115 Recovery

Wyoming Statutes

§ 26-44-115 — Recovery

Wyoming § 26-44-115

Title 26Insurance Code

Ch. 44INSURANCE HOLDING COMPANY SYSTEM REGULATORY ACT

This text of Wyoming § 26-44-115 (Recovery) is published on Counsel Stack Legal Research, covering Wyoming primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Wyo. Stat. Ann. § 26-44-115 (2026).

Text

(a)Subject to subsections (b), (c) and (d) of this section, if an order for liquidation or rehabilitation of a domestic insurer has been entered, the receiver appointed under the order shall have a right to recover on behalf of the insurer any distribution or payment made at any time during the one (1) year preceding the petition for liquidation, conservation or rehabilitation which is either:

(i)From any parent corporation or holding company or person or affiliate who otherwise controlled the insurer, the amount of distributions other than distributions of shares of the same class of stock paid by the insurer on its capital stock; or

(ii)Any payment in the form of a bonus, termination settlement or extraordinary lump sum salary adjustment made by the insurer or its subsidiary to a dire

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(a) Subject to subsections (b), (c) and (d) of this
section, if an order for liquidation or rehabilitation of a
domestic insurer has been entered, the receiver appointed under
the order shall have a right to recover on behalf of the insurer
any distribution or payment made at any time during the one (1)
year preceding the petition for liquidation, conservation or
rehabilitation which is either:
(i) From any parent corporation or holding company or
person or affiliate who otherwise controlled the insurer, the
amount of distributions other than distributions of shares of
the same class of stock paid by the insurer on its capital
stock; or
(ii) Any payment in the form of a bonus, termination
settlement or extraordinary lump sum salary adjustment made by
the insurer or its subsidiary to a director, officer or
employee.
(b) A distribution shall not be recoverable if the parent
or affiliate shows that, when paid, the distribution was lawful
and reasonable, and that the insurer did not know and could not
reasonably have known that the distribution might adversely
affect the ability of the insurer to fulfill its contractual
obligations.
(c) Any person who was a parent corporation or holding
company or a person who otherwise controlled the insurer or
affiliate at the time the distributions were paid shall be
liable up to the amount of distributions or payments the person
received under subsection (a) of this section. Any person who
otherwise controlled the insurer at the time the distributions
were declared shall be liable up to the amount of distributions
he would have received if they had been paid immediately.
(d) The maximum amount recoverable under this section
shall be the amount needed in excess of all other available
assets of the impaired or insolvent insurer to pay the
contractual obligations of the impaired or insolvent insurer and
to reimburse any guaranty funds.
(e) To the extent that any person liable under subsection
(c) of this section is insolvent or otherwise fails to pay
claims due from it pursuant to subsection (c) of this section,
its parent corporation or holding company or person who
otherwise controlled it at the time the distribution was paid,
shall be liable for any resulting deficiency in the amount
recovered from the parent corporation or holding company or
person who otherwise controlled it.