Title 58 — INSURANCE

If an ancillary receiver in another state or foreign country, whether called by that name or not, fails to transfer to the domiciliary liquidator in this state any assets within his control other than special deposits, diminished only by the expenses of the ancillary receivership…

The notice of hearing under § 58-29B-13.1 and any order issued pursuant to that section shall be served upon the insurer pursuant to the applicable rules of civil or administrative procedure. The notice of hearing shall state the time and place of hearing, and the conduct, condit…

Any insurer subject to an order under § 58-29B-14 may request a hearing to review that order. Such a hearing shall be held as provided in § 58-29B-17 , but the request for a hearing may not stay the effect of the order. Source: SL 1989, ch 436 , § 18.

If the director issues an order under § 58-29B-14 , the insurer may, at any time, waive a director's hearing and apply for immediate judicial relief by means of any remedy afforded by law without first exhausting administrative remedies. If a hearing is held subsequent to the hea…

The provisions of this chapter apply to: (1) All insurers who are doing, or have done, an insurance business in this state, and against whom claims arising from that business may exist now or in the future; (2) All insurers who purport to do an insurance business in this state; (…

During the period of supervision the insurer may request the director to review an action taken or proposed to be taken by the supervisor, specifying wherein the action complained of is believed not to be in the best interest of the insurer. Source: SL 1989, ch 436 , § 20.

If any person has violated any supervision order issued under this chapter, he is liable to pay a civil penalty imposed by the circuit court of Hughes County not to exceed ten thousand dollars. Source: SL 1989, ch 436 , § 21.

The director may 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 proper to enforce a supervision order. Source: SL 1989, ch 436 , § 22.

In the event that any person, subject to the provisions of this chapter, including those persons described in § 58-29B-9 shall knowingly violate any valid order of the director issued under §§ 58-29B-13.1 to 58-29B-23 , inclusive, and, as a result of such violation, the net worth…

For domestic insurers the director may file in the circuit court of Hughes County a petition for a seizure order: (1) That there exist any grounds that would justify a court order for a formal delinquency proceeding against an insurer under this chapter; (2) That the interest of …

Upon a filing under § 58-29B-24 , the court may issue forthwith, ex parte and without a hearing, the requested order which shall direct the director to take possession and control of all or a part of the property, books, accounts, documents, and other records of an insurer, and o…

The court shall specify in the order under § 58-29B-25 its duration which shall be such time as the court deems necessary for the director to ascertain the condition of the insurer. On motion of either party or on its own motion, the court may from time to time hold such hearings…

Entry of a seizure order under §§ 58-29B-24 to 58-29B-26 , inclusive, does not constitute an anticipatory breach of any contract of the insurer. Source: SL 1989, ch 436 , § 27.

An insurer subject to an ex parte order under § 58-29B-25 may petition the court at any time after the issuance of such order for a hearing and review of the order. The court shall hold the hearing and review the order within fifteen days of the date of the request. A hearing und…

If, at any time after the issuance of an order under § 58-29B-25 , it appears to the court that any person whose interest is or will be substantially affected by the order did not appear at the hearing and has not been served, the court may order that notice be given. An order th…

Terms used in this chapter mean: (1) "Ancillary state," any state other than a domiciliary state; (2) "Creditor," a person having any claim, whether matured or unmatured, liquidated or unliquidated, secured or unsecured, absolute, fixed, or contingent; (3) "Delinquency proceeding…

In any proceeding and judicial review thereof under the provisions of §§ 58-29B-13.1 to 58-29B-29 , inclusive, all records of the insurer, other documents, and all Division of Insurance files and court records and papers, so far as they pertain to or are a part of the record of t…

The director may apply by petition to the circuit court of Hughes County 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: (1) The insurer is in such condition that the further …

Except for good cause shown, an order to rehabilitate the business of a domestic insurer, or an alien insurer domiciled in this state, shall be issued within ten days of the hearing on the order to show cause and shall contain an appointment of the director and his successors in …

The director 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 director may employ such counsel, clerks, and assistants as he considers necessary. The compensation…

The director may promulgate rules pursuant to chapter 1-26 for appointing committees pursuant to §§ 58-29B-32.1 and 58-29B-46 and establishing the duties to be performed by such committees. Source: SL 1992, ch 351 , § 14.

The rehabilitator may take any action he considers appropriate to reform and revitalize the insurer. He shall have all the powers of the directors, officers, and managers, whose authority shall be suspended, except as they are redelegated by the rehabilitator. He may direct and m…

If it appears to the rehabilitator that there has been criminal or tortious conduct, or breach of any contractual or fiduciary obligation detrimental to the insurer by any officer, manager, representative, insurance producer, employee, or other person, the rehabilitator may pursu…

If the rehabilitator determines that reorganization, consolidation, conversion, reinsurance, merger, sale, or other transformation of the insurer is appropriate, he shall prepare a plan to effect such changes. Upon application of the rehabilitator for approval of the plan, and af…

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 for ninety days and such additional time as is…

No statute of limitations or defense of laches may run with respect to any action by or against an insurer between the filing of a petition for appointment of a rehabilitator for that insurer and the order granting or denying that petition. Any action by or against the insurer th…

Any guaranty association or foreign guaranty association covering life or health insurance or annuities shall have standing to appear in any court proceeding concerning the rehabilitation of a life or health insurer if such association is or may become liable to act as a result o…

If 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 circuit court of Hughes County for an order of liquidation. A petition …

Delinquency proceedings pursuant to this chapter shall constitute the sole and exclusive method of liquidating, rehabilitating, reorganizing, or conserving an insurer, and no court may entertain a petition for the commencement of such proceedings, or any other similar procedure, …

The rehabilitator or directors may at any time petition the circuit court of Hughes County for an order terminating rehabilitation of an insurer. The court may order payment from the estate of the insurer of such costs and other expenses of such petition as justice may require. I…

The director may petition the court for an order directing him to liquidate a domestic insurer or an alien insurer domiciled in this state based on the following: (1) Any ground for an order of rehabilitation as specified in § 58-29B-31 , whether or not there has been a prior ord…

An order to liquidate the business of a domestic insurer shall contain appointment of the director and his successors in office as liquidator and shall direct the liquidator forthwith to take possession of the assets of the insurer and to administer them under the general supervi…

If an insurer is in liquidation, within five days of July 1, 1992, or, if later, within five days after the initiation of an appeal of an order of liquidation, which order has not been stayed, the director shall present for the court's approval a plan for the continued performanc…

Upon issuance of the order to liquidate, the rights and liabilities of any such insurer and of its creditors, policyholders, shareholders, members, and all other persons interested in its estate shall become fixed as of the date of entry of the order of liquidation, except as pro…

An order to liquidate the business of an alien insurer domiciled in this state shall be in the same terms and have the same legal effect as an order to liquidate a domestic insurer, except that the assets and the business in the United States shall be the only assets and business…

At the time of the petition for an order of liquidation, or at any time thereafter, the director, after making appropriate findings of an insurer's insolvency, may petition the court for a judicial declaration of such insolvency. After providing such notice and hearing as it deem…

Any order issued under §§ 58-29B-41 to 58-29B-45 , inclusive, shall require financial reports to the court by the liquidator. Financial reports shall include, at a minimum, the assets and liabilities of the insurer and all funds received or disbursed by the liquidator during the …

All policies, including bonds and other noncancellable business, other than life or health insurance or annuities, in effect at the time of issuance of an order of liquidation shall continue in force for the lesser of: (1) A period of thirty days from the date of entry of the liq…

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 dissolution of the corporation upon petiti…

The liquidator may: (1) Appoint a special deputy to act for the liquidator under this chapter and determine his reasonable compensation. The special deputy shall have all powers of the liquidator granted by this section. The special deputy shall serve at the pleasure of the liqui…

Delinquency proceedings pursuant to this chapter may be commenced by the director at any time, regardless of whether notice to an insurer has been given concerning impairment of capital or assets as provided in §

The enumeration, in § 58-29B-49 , of the powers and authority of the liquidator may not be construed as a limitation upon him, nor may it exclude in any manner his right to do such other acts not herein specifically enumerated, or otherwise provided for, as may be necessary or ap…

Notwithstanding the powers of the liquidator as stated in §§ 58-29B-47 and 58-29B-50 , the liquidator has no obligation to defend claims or to continue to defend claims subsequent to the entry of a liquidation order. Source: SL 1992, ch 351 , § 8.

Unless the court otherwise directs, the liquidator must give notice of the liquidation order as soon as possible but in no event more than ten days from the date of entry of the order to liquidate: (1) By first-class mail or electronic communication to the insurance director of e…

Notice to any potential claimant under § 58-29B-51 requires such claimant to file with the liquidator his claims together with proper proofs thereof under §§ 58-29B-106 to 58-29B-110 , inclusive, on or before a date the liquidator shall specify in the notice. The liquidator need …

Every person who receives notice in the form prescribed in § 58-29B-51 that an insurer which the person represents is the subject of a liquidation order shall, within five days of the notice, give written notice of the liquidation order by first class mail to the last known addre…

Any insurance producer failing to give notice or file a report of compliance as required in § 58-29B-53 may be subject to payment of a penalty of not more than one thousand dollars and may have the insurance producer's license suspended, which may only be imposed after a hearing …

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 may be brought against the insurer or liquidator, whether in this state or elsewhere, nor may any such existing action be maintained …

The liquidator may, upon or after an order for liquidation, within two years or such time in addition to two years as applicable law may permit, institute an action or proceeding on behalf of the estate of the insurer upon any cause of action against which the statute of limitati…

No statute of limitations or defense of laches may run with respect to any action against an insurer between the filing of a petition for liquidation against an insurer and the denial of the petition. Any action against the insurer that might have been commenced when the petition…