Title 17B, Title 17B: INSURANCE

17B:30B-8 Disclosures to viator, procedure. 8. a. With each application for a viatical settlement, a viatical settlement provider or life insurance producer shall provide the viator with at least the following disclosures no later than the time the application for the viatical se…

17B:30B-9 Material required prior to entering into viatical settlement contract. 9. a. (1) A viatical settlement provider entering into a viatical settlement contract shall first obtain: (a) If the viator is the insured, a written statement from a licensed attending physician tha…

17B:32-31. Short title, purpose of act 1. a. This act shall be known and may be cited as the "Life and Health Insurers Rehabilitation and Liquidation Act." b. The purpose of this act is the protection of the interests of insureds, claimants, creditors and the public generally thr…

17B:32-32. Application of authorized proceedings 2. The proceedings authorized by this act shall be applied to: a. All insurers who are doing, or have done, insurance business in this State, and against whom claims arising from that business may exist now or in the future. b. All…

17B:32-33. Definitions 3. For the purposes of this act: "Advance" shall have the same meaning as that term is defined at 12 C.F.R. s.1266.1. "Ancillary state" means any state other than a domiciliary state. "Commissioner" means the Commissioner of Insurance of this State. "Credit…

17B:32-34. Jurisdiction over delinquency proceedings 4. a. No delinquency proceeding shall be commenced under this act by anyone other than the commissioner and no court shall have jurisdiction to entertain, hear or determine any proceeding commenced by any other person. b. No co…

17B:32-35. Restraining orders, injunctions 5. a. Any receiver appointed in a proceeding under this act may at any time apply for, and the Superior Court may grant, such restraining orders, preliminary and permanent injunctions, and other orders as may be deemed necessary and prop…

17B:32-36. Cooperation with commissioner in proceedings 6. a. Any officer, manager, director, trustee, owner, employee or agent of any insurer, or any other person with authority over or in charge of any segment of the insurer's affairs, including any person who exercises control…

17B:32-37. Proceedings previously commenced deemed commenced under this act; exceptions, distribution of claims 7. a. Every proceeding heretofore commenced under the laws in effect before the enactment of this act shall be deemed to have been commenced under this act henceforth f…

17B:32-38. Prohibitions relative to insurer subject to delinquency proceeding 8. No insurer that is subject to any delinquency proceedings, whether administrative or judicial, shall: a. Be released from that proceeding, unless that proceeding is converted into a judicial rehabili…

17B:32-39. Filing of petition; court orders 9. a. The commissioner may file in the Superior Court of this State a petition alleging that, with respect to a domestic insurer: (1) There exist any grounds that would justify a court order for a formal delinquency proceeding against a…

17B:32-40. Confidentiality of documents, files, records, papers 10. In all proceedings and judicial reviews thereof under section 9 of this act, all records of the insurer, other documents, and all department files and court records and papers, so far as they pertain to or are a …

17B:32-41. Petition for authority to rehabilitate insurer 11. The commissioner may petition the Superior Court for an order authorizing him to rehabilitate a domestic insurer or an alien insurer domiciled in this State on any one or more of the following grounds: a. The insurer i…

17B:32-42. Appointment of rehabilitator 12. a. An order to rehabilitate the business of a domestic insurer, or an alien insurer domiciled in this State, shall appoint the commissioner and his successors in office the rehabilitator, and shall direct the rehabilitator forthwith to …

17B:32-43. Powers of rehabilitator 13. a. The commissioner as rehabilitator may appoint one or more special deputies, who shall have all the powers and responsibilities of the rehabilitator granted under this section, and the commissioner may employ such counsel, clerks and assis…

17B:32-44. Staying of pending actions 14. a. 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 proceeding…

17B:32-45. Petition for order of liquidation 15. a. Whenever the commissioner 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 commissioner may petition the Superi…

17B:32-46. Basis for order of liquidation 16. The commissioner may petition the Superior Court for an order directing him to liquidate a domestic insurer or an alien insurer domiciled in this State on the basis: a. Of any ground for an order of rehabilitation as specified in sect…

17B:32-47. Appointment of liquidator 17. a. An order to liquidate the business of a domestic insurer shall appoint the commissioner and his successors in office liquidator and shall direct the liquidator forthwith to take possession of the assets of the insurer and to administer …

17B:32-48. Policies to continue in force 18. a. Policies of life or health insurance or annuities shall continue in force for such period and under such terms as is provided for by the guaranty association or any applicable foreign guaranty association. b. Policies of life or hea…

17B:32-49. Petition for dissolution 19. The commissioner 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 or…

17B:32-50. Powers of liquidator 20. a. The liquidator shall have the power: (1) To appoint a special deputy or deputies 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.…

17B:32-51. Notice of liquidation order 21. a. Unless the court otherwise directs, the liquidator shall give or cause to be given notice of the liquidation order as soon as possible: (1) By first class mail and either by telegram or telephone to the commissioner or insurance regul…

17B:32-52. Provision of information to liquidator by agents, licensing affected 22. a. Every person who receives notice, in the form prescribed in section 21 of this act, that an insurer which he represents as an agent is the subject of a liquidation order, shall within 30 days o…

17B:32-53. Actions against or by insurer, liquidator 23. a. 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 or in arbitration shall be brought against the insurer or liquidator, whe…

17B:32-54. Preparation of list of insurer's assets 24. a. As soon as practicable after the liquidation order but not later than 120 days thereafter, the liquidator shall prepare in duplicate a list of the insurer's assets. The list shall be amended or supplemented from time to ti…

17B:32-55. Transfers, obligations deemed fraudulent. 25. a. Every transfer made or suffered and every obligation incurred by an insurer within one year prior to the filing of a successful petition for rehabilitation or liquidation under this act shall be fraudulent as to then exi…

17B:32-56. Transfer of real property deemed valid 26. a. After a petition for rehabilitation or liquidation has been filed, but before an order of rehabilitation or liquidation is granted, a transfer of any of the real property of the insurer made to a person acting in good faith…

17B:32-57. Preferences. 27. a. (1) 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 year before the filing of a successful petition for liquidat…

17B:32-58. Claims of creditor 28. a. 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, transfer, assignment or e…

17B:32-59. Mutual debts, credits 29. a. Mutual debts or mutual credits, whether arising out of one or more contracts 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, …

17B:32-60. Report by liquidator 30. a. As soon as practicable, but not more than two years from the date of an order of liquidation under section 17 of this act of an insurer issuing assessable policies, the liquidator shall make a report to the court setting forth: (1) The reaso…

17B:32-61. Amount recoverable not affected by delinquency proceedings 31. The amount recoverable by the liquidator from reinsurers shall not be reduced as a result of the delinquency proceedings, regardless of any provision in the reinsurance contract or other agreement. Payment …

17B:32-62. Payment of unpaid premium, violations; penalties; appeals 32. a. (1) 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 premium for the full policy term d…

17B:32-63. Proposal to disburse assets 33. a. Within 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 proposal to disburse assets out of marshalle…

17B:32-64. Filing of proof of claims 34. a. Proof of all claims shall be filed with the liquidator in the form required by section 35 of this act on or before the last day for filing specified in the notice required under section 21 of this act, except that proof of claims for ca…

17B:32-65. Statement to proof of claim 35. a. Proof of claim shall consist of a statement signed by the claimant that includes all of the following that are applicable: (1) The particulars of the claim including the consideration given for it; (2) The identity and amount of the s…

17B:32-66. Contingent, absolute, limited claims 36. a. A claim may be allowed even if contingent, if it is filed in accordance with section 34 of this act. It may be allowed and may participate in all distributions declared after it is filed to the extent that it does not prejudi…

17B:32-67. Third party, insured claims 37. a. Whenever any third party asserts a cause of action against an insured of an insurer in liquidation, the third party may file a claim with the liquidator. b. Whether or not the third party files a claim, the insured may file a claim on…

17B:32-68. Denial of claims 38. a. 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 60 days from the mailing of t…

17B:32-69. Proving, filing of claim of subrogee 39. 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 subro…

17B:32-70. Determination of value of security 40. a. The value of any security held by a secured creditor shall be determined in one of the following ways, as the court may direct: (1) By converting the same into money according to the terms of the agreement pursuant to which the…

17B:32-71. Priority of distribution of claims 41. a. 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 set forth in this section. Every claim in each class shall be paid in full or adequate fund…

17B:32-72. Review of claims 42. a. 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 claims will be recommend…

17B:32-73. Payment of distributions 43. 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 …

17B:32-74. Distribution of unclaimed funds 44. Distribution of 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 pe…