Title 58 — INSURANCE

This chapter may be cited as the Insurers Supervision, Rehabilitation, and Liquidation Act. Source: SL 1989, ch 436 , § 1.

(6) "Domiciliary state," the state in which an insurer is incorporated or organized, or, in the case of an alien insurer, its state of entry; (7) "Fair consideration," is given for property or obligation: (a) When in exchange for such property or obligation, as a fair equivalent …

The liquidator's proposal shall provide for disbursements to the associations in amounts estimated at least equal to the claim payments made or to be made thereby for which such associations could assert a claim against the liquidator, and shall further provide that if the assets…

The liquidator's proposal shall, with respect to an insolvent insurer writing life or health insurance or annuities, provide for disbursements of assets to any guaranty association or any foreign guaranty association covering life or health insurance or annuities or to any other …

Notice of the application under § 58-29B-98 shall be given to the association and to the directors of insurance of each of the states. Any such notice shall be deemed to have been given when deposited in the United States' mail, with first class postage prepaid thereon, at least …

Proof of all claims shall be filed with the liquidator in the form required by §§ 58-29B-106 to 58-29B-110 , inclusive, on or before the last day for filing specified in the notice required under §§ 58-29B-51 and 58-29B-52 , except that proof of claims for cash surrender values o…

58-29B-108 Failure to provide necessary information--Liquidator may require prescribed forms and additional information. 58-29B-109 Liquidator may request or otherwise obtain additional information or evidence. 58-29B-110 Judgment or order not evidence of liability or quantum of …

The liquidator shall permit late filing claims to share in distributions, whether past or future, as if they were not late, if such claims are claims of a guaranty association or foreign guaranty association for reimbursement of covered claims paid or expenses incurred, or both, …

Treatment of late claims not covered by §

Proof of claim shall consist of a verified 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 security on the claim; (3) The payment…

The liquidator need not consider or allow a claim if it does not contain all the information in § 58-29B-107 , which may be applicable. The liquidator may require that a prescribed form be used and may require that other information and documents be included. Source: SL 1989, ch …

At any time the liquidator may request the claimant to present information or evidence supplementary to that required under § 58-29B-107 , and may take testimony under oath, require production of affidavits or depositions, or otherwise obtain additional information or evidence. S…

Any person included within § 58-29B-9 who fails to cooperate with the director, or any person who obstructs or interferes with the director in the conduct of any delinquency proceeding or any investigation preliminary or incidental thereto, or who violates any order the director …

No judgment or order against an insured or the insurer entered after the date of filing of a successful petition for liquidation and no judgment or order against an insured or the insurer entered at any time by default or by collusion need be considered as evidence of liability o…

All claims of a guaranty association or foreign guaranty association shall be in such form and contain such substantiation as may be agreed to by the association and the liquidator. Source: SL 1989, ch 436 , § 111.

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. Source: SL 1989, ch 436 , § 112.

A claim may be allowed even if contingent, if it is filed in accordance with §§ 58-29B-103 to 58-29B-106 , inclusive. It may be allowed and may participate in all distributions declared after it is filed to the extent that it does not prejudice the orderly administration of the l…

Claims that are due except for the passage of time shall be treated as settled claims are treated. However, such claims may be discounted at the rate specified in § 58-15-15.8 minus two percent. Source: SL 1989, ch 436 , § 114.

Claims made under employment contracts by directors, principal officers, or persons in fact performing similar functions or having similar powers are limited to payment for services rendered prior to the issuance of any order of rehabilitation or liquidation under § 58-29B-32 or

If 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. Whether or not the third party files a claim, the insured may file a claim on his own behalf in the liquidation. If the insured fail…

The liquidator shall make his recommendations to the court under § 58-29B-125 , for the allowance of an insured's claim under § 58-29B-116 , after consideration of the probable outcome of any pending action against the insured on which the claim is based, the probable damages rec…

If several claims founded upon one policy are filed, whether by third parties or as claims by the insured under § 58-29B-116 or 58-29B-128 , and the aggregate allowed amount of the claims to which the same limit of liability in the policy is applicable exceeds that limit, each cl…

If 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 days from the mailing of the notice, the claimant may file h…

In any proceeding under this chapter, 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 bond from the …

If objections are filed with the liquidator and the liquidator does not alter his denial of the claim as a result of the objections, the liquidator shall ask the court for a hearing as soon as practicable and give notice of the hearing by first class mail to the claimant or his a…

If 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 creditor, whether the claim has …

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 security was delivered to such creditors; or (2) By …

The determination made pursuant to § 58-29B-122 shall be under the supervision and control of the court with due regard for the recommendation of the liquidator. The amount so determined shall be credited upon the secured claim, and any deficiency shall be treated as an unsecured…

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 before the members of the next cla…

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 recommended to the court except where the l…

If the domiciliary receiver, conservator, or liquidator, within thirty days after the giving of such notice, gives notice in writing to the ancillary receiver and to the claimant, either by registered or certified mail or by personal service, of the receiver's intention to contes…

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 unliquidated and undetermined claims, in…

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 or cannot be found, shall be deposited wit…

All funds withheld under §§ 58-29B-112 to 58-29B-114 , inclusive, and not distributed shall upon discharge of the liquidator be deposited with the state treasurer and paid by him in accordance with §

Every proceeding heretofore commenced under the laws in effect before the enactment of this chapter shall be deemed to have commenced under this chapter for the purpose of conducting the proceeding henceforth, except that in the discretion of the director the proceeding may be co…

If the director has reasonable cause to believe, and determines, after a hearing held pursuant to the provisions of § 58-29B-17 , that any domestic insurer has committed or engaged in, or is about to commit or engage in, any act, practice, or transaction that would subject it to …

If all assets justifying the expense of collection and distribution have been collected and distributed under this chapter, the liquidator shall apply to the court for discharge. The court may grant the discharge and make any other orders, including an order to transfer to the st…

After the liquidation proceeding has been terminated and liquidator discharged, the director or other interested party may at any time petition the court to reopen the proceedings for good cause, including the discovery of additional assets. If the court is satisfied that there i…

If it appears 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 what records should be retained for future reference and what should be destroyed. Sourc…

The court may, as it considers desirable, cause audits to be made of the books of the director relating to any receivership established under this chapter, and a report of each audit shall be filed with the director and with the court. The books, records, and other documents of t…

If a domiciliary liquidator has not been appointed, the director may apply to the court by verified petition for an order directing him to act as conservator to conserve the property of an alien insurer not domiciled in this state or a foreign or alien insurer on any one or more …

The court may issue the order in whatever terms it deems appropriate. The filing or recording of the order with the clerk of the circuit court of Hughes County or the register of deeds of the county in which the principal business of the company is located or the county in which …

The conservator may at any time petition the court for an order under §§ 58-29B-138 to 58-29B-143 , inclusive, to liquidate assets of a foreign or alien insurer under conservation, or, if appropriate, for an order under §§ 58-29B-145 to 58-29B-150 , inclusive, to be appointed anc…

The conservator may at any time petition the court for an order terminating conservation of an insurer. If the court finds that the conservation is no longer necessary, it shall order that the insurer be restored to possession of its property and the control of its business. The …

58-29B-141 Domiciliary receiver, conservator, or liquidator appointed while liquidation proceeding--Duty to act as ancillary receiver. 58-29B-142 Director's application to act as receiver--Grounds. 58-29B-143 Payment of resident's claims against foreign or alien insurer. 58-29B-1…

Notice of orders sought under § 58-29B-134 or

If upon examination or at any other time the director has reasonable cause to believe or determines that any domestic insurer is in such condition as to render the continuance of its business hazardous to the public or to holders of its policies or certificates of insurance, or i…

If it appears to the court that the best interests of creditors, policyholders, and the public require, the court may issue an order to liquidate in whatever terms it deems appropriate. The filing or recording of the order with the clerk of the circuit court of Hughes County or t…

If a domiciliary receiver, conservator, or liquidator is appointed in a reciprocal state while a liquidation is proceeding under this section the liquidator under this section shall thereafter act as ancillary receiver under §§ 58-29B-145 to 58-29B-148 , inclusive. If a domicilia…

On the same grounds as are specified in § 58-29B-138 , the director may petition any appropriate federal district court to be appointed receiver to liquidate that portion of the insurer's assets and business over which that court will exercise jurisdiction, or any lesser part the…