Title 41, INSURANCE

41-3305. INJUNCTIONS AND ORDERS. (1) Any receiver appointed in a proceeding under this act, may at any time apply for and any court of general jurisdiction may grant, such restraining orders, preliminary and permanent injunctions, and other orders as may be deemed necessary and p…

41-3306. COOPERATIONS OF OFFICERS, OWNERS, AND EMPLOYEES. (1) Any officer, manager, director, trustee, owner, employee, or agent of any insurer, or any other persons with authority over or in charge of any segment of the insurer's affairs, shall cooperate with the director in any…

41-3307. BONDS. In any proceeding under this act, the director and his deputies shall be responsible on their official bonds for the faithful performance of their duties. If the court deems it desirable for the protection of the assets, it may at any time require an additional bo…

41-3308. CONTINUATION OF DELINQUENCY PROCEEDINGS. Every proceeding heretofore commenced under the laws in effect before the enactment of this act shall be deemed to have commenced under this act for the purpose of conducting the proceeding henceforth, except that in the discretio…

41-3309. DIRECTOR'S SUMMARY ORDERS AND SUPERVISION PROCEEDINGS. (1) Whenever the director has reasonable cause to believe, and determines, after a hearing held under subsection 5 of this section, that any domestic insurer has committed or engaged in, or is about to commit or enga…

41-3310. COURT'S SEIZURE ORDER. (1) The director may file in the district court of this state a petition alleging, with respect to a domestic insurer: (a) That any grounds exist that would justify a court order for a formal delinquency proceeding against an insurer under this act…

41-3311. HEARINGS. In all proceedings and judicial reviews thereof under sections 41-3309 and 41-3310, Idaho Code, all records of the insurer, other documents, and all insurance department files and court records and papers, so far as they pertain to or are a part of the record o…

41-3312. GROUNDS FOR REHABILITATION. The director may apply by petition to the district court for an order authorizing him to rehabilitate a domestic insurer or an alien insurer domiciled in this state on any one (1) or more of the following grounds: (1) The insurer is in such co…

41-3313. REHABILITATION ORDERS. (1) An order to rehabilitate the business of a domestic insurer, or an alien insurer domiciled in this state, shall appoint the director and his successors in office the rehabilitator, and shall direct the rehabilitator forthwith to take possession…

41-3314. POWERS AND DUTIES OF THE REHABILITATOR. (1) The director as rehabilitator may appoint one or more special deputies, who shall have all the powers and responsibilities of the rehabilitator granted under the provisions of this section, and the director may employ such coun…

41-3315. ACTIONS BY AND AGAINST REHABILITATOR. (1) Any court in this state before which any action or proceeding in which the insurer is a party or is obligated to defend a party is pending when a rehabilitation order against the insurer is entered shall stay the action or procee…

41-3316. TERMINATION OF REHABILITATION. (1) Whenever the director believes further attempts to rehabilitate an insurer would substantially increase the risk of loss to creditors, policyholders, or the public, or would be futile, the director may petition the district court for an…

41-3317. GROUNDS FOR LIQUIDATION. The director may petition the district court for an order directing him to liquidate a domestic insurer or an alien insurer domiciled in this state on the basis: (1) Of any ground for an order of rehabilitation as specified in section 41-3312, Id…

41-3318. LIQUIDATION ORDERS. (1) An order to liquidate the business of a domestic insurer shall appoint the director and his successors in office liquidator and shall direct the liquidator forthwith to take possession of the assets of the insurer and to administer them under the …

41-3319. CONTINUANCE OF COVERAGE. (1) All policies, other than life or health insurance or annuities, in effect at the time of issuance of an order of liquidation shall continue in force only for the lesser of: (a) A period of thirty (30) days from the date of entry of the liquid…

41-3320. INSURER -- DISSOLUTION. The director may petition for an order dissolving the corporate existence of a domestic insurer or the United States branch of an alien insurer domiciled in this state at the time he applies for a liquidation order. The court shall order dissoluti…

41-3321. POWERS OF LIQUIDATOR. (1) The liquidator shall have the power: (a) To appoint a special deputy to act for him under this act, and to determine his reasonable compensation. The special deputy shall have all powers of the liquidator granted by this section. The special dep…

41-3322. NOTICE TO CREDITORS AND OTHERS. (1) Unless the court otherwise directs, the liquidator shall give or cause to be given notice of the liquidation order as soon as possible: (a) By first class mail and either by telegram or telephone to the insurance director of each juris…

41-3323. DUTIES OF AGENTS. (1) Every person who receives notice in the form prescribed in section 41-3322, Idaho Code, that an insurer which he represents as an agent is the subject of a liquidation order, shall within fifteen (15) days of such notice give notice of the liquidati…

41-3324. ACTIONS BY AND AGAINST LIQUIDATOR. (1) Upon issuance of an order appointing a liquidator of a domestic insurer or of an alien insurer domiciled in this state, no action at law or equity shall be brought against the insurer or liquidator, whether in this state or elsewher…

41-3325. COLLECTION AND LIST OF ASSETS. (1) As soon as practicable after the liquidation order but not later than one hundred twenty (120) days thereafter, the liquidator shall prepare in duplicate a list of the insurer's assets. The list shall be amended or supplemented from tim…

41-3326. FRAUDULENT TRANSFERS PRIOR TO PETITION. (1) Every transfer made or suffered and every obligation incurred by an insurer within one (1) year prior to the filing of a successful petition for rehabilitation or liquidation under this act is fraudulent as to then existing and…

41-3327. FRAUDULENT TRANSFER AFTER PETITION. (1) After a petition for rehabilitation or liquidation has been filed, a transfer of any of the real property of the insurer made to a person acting in good faith shall be valid against the receiver if made for a present fair equivalen…

41-3328. VOIDABLE PREFERENCES AND LIENS. (1) (a) A preference is a transfer of any of the property of an insurer to or for the benefit of a creditor, for or on account of an antecedent debt, made or suffered by the insurer within one (1) year before the filing of a successful pet…

41-3329. CLAIMS OF HOLDERS OF VOID OR VOIDABLE RIGHTS. (1) No claims of a creditor who has received or acquired a preference, lien, conveyance, transfer, assignment, or encumbrance, voidable under this act, shall be allowed unless he surrenders the preference, lien, conveyance, t…

41-3330. SETOFFS. (1) Mutual debts or mutual credits between the insurer and another person in connection with any action or proceeding under this act shall be set off and the balance only shall be allowed or paid, except as provided in subsection (2) of this section and section …

41-3331. ASSESSMENTS. (1) As soon as practicable but not more than two (2) years from the date of an order of liquidation under section 41-3318, Idaho Code, of an insurer issuing assessable policies, the liquidator shall make a report to the court setting forth: (a) The reasonabl…

41-3332. REINSURER'S LIABILITY. The amount recoverable by the liquidator from reinsurers shall not be reduced as a result of delinquency proceedings, regardless of any provision in the reinsurance contract or other agreement. Payment made directly to an insured or other creditor …

41-3333. RECOVERY OF PREMIUMS OWED. (1) (a) An agent, broker, premium finance company, or any other person, other than the insured, responsible for the payment of a premium shall be obligated to pay any unpaid earned premium due the insurer at the time of the declaration of insol…

41-3334. DOMICILIARY LIQUIDATOR'S PROPOSAL TO DISTRIBUTE ASSETS. (1) Within one hundred twenty (120) days of a final determination of insolvency of an insurer by a court of competent jurisdiction of this state, the liquidator shall make application to the court for approval of a …

41-3335. FILING OF CLAIMS. (1) Proof of all claims shall be filed with the liquidator in the form required by section 41-3336, Idaho Code, on or before the last day for filing specified in the notice required under section 41-3322, Idaho Code, except that proof of claims for cash…

41-3336. PROOF OF CLAIM. (1) Proof of claim shall consist of a statement signed by the claimant that includes all of the following that are applicable: (a) The particulars of the claim including the consideration given for it; (b) The identity and amount of the security on the cl…

41-3337. SPECIAL CLAIMS. (1) The claim of a third party which is contingent only on his first obtaining a judgment against the insured shall be considered and allowed as if there were no such contingency. (2) A claim may be allowed even if contingent, if it is filed in accordance…

41-3338. SPECIAL PROVISIONS FOR THIRD PARTY CLAIMS. (1) Whenever any third party asserts a cause of action against an insured of an insured in liquidation, the third party may file a claim with the liquidator. (2) Whether or not the third party files a claim, the insured may file…

41-3339. DISPUTED CLAIMS. (1) When a claim is denied in whole or in part by the liquidator, written notice of the determination shall be given to the claimant or his attorney by first class mail at the address shown in the proof of claim. Within sixty (60) days from the mailing o…

41-3340. CLAIMS OF SURETY. Whenever a creditor whose claim against an insurer is secured, in whole or in part, by the undertaking of another person, fails to prove and file that claim, the other person may do so in the creditor's name, and shall be subrogated to the rights of the…

41-3341. SECURED CREDITOR'S CLAIMS. (1) The value of any security held by a secured creditor shall be determined in one (1) of the following ways, as the court may direct: (a) By converting the same into money according to the terms of the agreement pursuant to which the security…

41-3342. PRIORITY OF DISTRIBUTION. The priority of distribution of claims from the insurer's estate shall be in accordance with the order in which each class of claims is herein set forth. Every claim in each class shall be paid in full or adequate funds retained for such payment…

41-3343. LIQUIDATOR'S RECOMMENDATIONS TO THE COURT. (1) The liquidator shall review all claims duly filed in the liquidation and shall make such further investigation as he shall deem necessary. He may compound, compromise or in any other manner negotiate the amount for which cla…

41-3344. DISTRIBUTION OF ASSETS. Under the direction of the court, the liquidator shall pay distributions in a manner that will assure the proper recognition of priorities and a reasonable balance between the expeditious completion of the liquidation and the protection of unliqui…

41-3345. UNCLAIMED AND WITHHELD FUNDS. (1) All unclaimed funds subject to distribution remaining in the liquidator's hands when he is ready to apply to the court for discharge, including the amount distributable to any creditor, shareholder, member, or other person who is unknown…

41-3346. TERMINATION OF PROCEEDINGS. (1) When all assets justifying the expense of collection and distribution have been collected and distributed under this act, the liquidator shall apply to the court for discharge. The court may grant the discharge and make any other orders, i…

41-3347. REOPENING LIQUIDATION. After the liquidation proceeding has been terminated and the liquidator discharged, the director or other interested party may at any time petition the district court to reopen the proceedings for good cause, including the discovery of additional a…

41-3348. DISPOSITION OF RECORDS DURING AND AFTER TERMINATION OF LIQUIDATION. Whenever it shall appear to the director that the records of any insurer in process of liquidation or completely liquidated are no longer useful, he may recommend to the court and the court shall direct …

41-3349. EXTERNAL AUDIT OF THE RECEIVER'S BOOKS. The district court may, as it deems desirable, cause audits to be made of the books of the director relating to any receivership established under this act, and a report of each audit shall be filed with the director and with the c…

41-3350. CONSERVATION OF PROPERTY OF FOREIGN OR ALIEN INSURERS FOUND IN THIS STATE. (1) If a domiciliary liquidator has not been appointed, the director may apply to the district court by verified petition for an order directing him to act as conservator to conserve the property …