Title 31A, Title 31A: Insurance Code

31A-27a-105. Jurisdiction. (1) A delinquency proceeding under this chapter may not be commenced by a person other than the commissioner of this state. No court has jurisdiction to entertain, hear, or determine a delinquency proceeding commenced by any person other than the commis…

31A-27a-106. Exemption from fees. The receiver may not be required to pay any of the following fees to a public officer of this state: (1) filing fees; (2) recording fees; (3) transcript fees; (4) copying fees; (5) certification fees; or (6) authentication fees.

31A-27a-107. Notice and hearing on matters submitted by the receiver for receivership court approval. (1) Upon written request to the receiver, a person shall be placed on the service list to receive notice of matters filed by the receiver. The person shall include in a written r…

31A-27a-108. Injunctions and orders. (1) The receivership court may issue an order, process, or judgment including stays, injunctions, or other orders necessary or appropriate to carry out: this chapter; or an approved rehabilitation plan. (2) This chapter may not be construed to…

31A-27a-108.1. Injunctions and orders applicable to a federal home loan bank. (1) As used in this section: "Federal home loan bank" means the same as that term is defined in 12 U.S.C. Sec. 1422. "Insurer-member" means an insurer that is a member as defined in 12 U.S.C. Sec. 1422.…

31A-27a-109. Statutes of limitations. (1) If applicable law, an order, or an agreement fixes a period within which the insurer may commence an action, and this period is not expired before the day on which the initial petition in a delinquency proceeding is filed, the receiver ma…

31A-27a-110. Cooperation of officers, owners, and employees. (1) As used in this section: "Cooperate" includes to: reply promptly in writing to an inquiry from the commissioner or receiver requesting a reply; and promptly make available to the commissioner or receiver any record,…

31A-27a-111. Actions by and against the receiver. (1) An allegation by the receiver of improper or fraudulent conduct against a person may not be the basis of a defense to the enforcement of a contractual obligation owed to the insurer by a third party. Notwithstanding Subsection…

31A-27a-112. Unrecorded obligations and defenses of affiliates. (1) This section applies to a person who in relation to an insurer is: an affiliate; a controlled or controlling person; or a present or former officer, manager, director, trustee, or shareholder. (2) In a proceeding…

31A-27a-113. Executory contracts. (1) Subject to the other provisions of this section, the receiver may assume or reject an executory contract or unexpired lease of the insurer. (2) If there is a default in an executory contract or unexpired lease of the insurer, the receiver may…

31A-27a-114. Immunity and indemnification. (1) For purposes of this section: "Receiver's assistant" includes: a present or former special deputy or assistant special deputy engaged by contract or otherwise; a person whom the receiver, a special deputy, or an assistant special dep…

31A-27a-115. Approval and payment of expenses. (1) The receiver may pay an expense under a contract, lease, employment agreement, or other arrangement entered into by the insurer before receivership, as the receiver considers necessary for the purposes of this chapter. The receiv…

31A-27a-116. Financial reporting. (1) The receiver shall comply with all requirements for receivership financial reporting in this section and as may be specified by the commissioner by rule or ordered by the court within: 180 days after the day on which the receivership court en…

31A-27a-117. Records. (1) Upon entry of an order of rehabilitation or liquidation, the receiver is vested with title to all of the records of the insurer: of whatever nature; in whatever medium; wherever located; and regardless of whether the item is in the custody and control of…

31A-27a-118. Commissioner's reports. (1) The commissioner shall include in the commissioner's annual report: the names of the insurers proceeded against under Sectionsand; 31A-27a-207 31A-27a-901 those facts which indicate in reasonable detail the commissioner's formal proceeding…

31A-27a-119. Delinquency proceeding commenced before April 30, 2007. This chapter does not apply to a delinquency proceeding ongoing on April 30, 2007.

31A-27a-120. Severability. If any provision of this chapter or the application of this chapter to any person or circumstance is for any reason held invalid, the remainder of the chapter and the application of the provision to other persons or circumstances shall be given effect w…

31A-27a-201. Receivership court's seizure order. (1) The commissioner may petition a court with jurisdiction under: Title 78A, Judiciary and Judicial Administration with respect to: an insurer domiciled in this state; an unauthorized insurer; or pursuant to Section, a foreign ins…

31A-27a-202. Commencement of formal delinquency proceeding. (1) A formal delinquency proceeding against a person shall be commenced by filing a petition in the name of the commissioner or department. (2) The petition required by Subsection: (1) shall state: the grounds upon which…

31A-27a-203. Return of summons and summary hearing. (1) The receivership court shall hold a summary hearing at the time and date for the return of summons on a petition to commence a formal delinquency proceeding. (2) If a person is not served with summons on a petition to commen…

31A-27a-204. Proceedings for expedited trial -- Continuance -- Evidence -- Discovery. (1) The receivership court shall proceed to hear the case on the petition to commence a formal delinquency proceeding: at the time and date set forth for trial; without a jury; and without unnec…

31A-27a-205. Decision and appeals. (1) The receivership court shall enter judgment on the petition to commence formal delinquency proceeding within 15 days after the day on which the evidence is concluded. (2) An order entered pursuant to Subsectionis final when entered. (1) An a…

31A-27a-206. Confidentiality. (1) Except as provided in Subsection, in a delinquency proceeding or a judicial review under Section: (1)(b) 31A-27a-201 all records of the insurer, department files, court records and papers, and other documents, so far as they pertain to or are a p…

31A-27a-207. Grounds for rehabilitation or liquidation. (1) The commissioner may petition a court with jurisdiction under, with respect to an insurer domiciled in this state or an unauthorized insurer for an order of rehabilitation or liquidation on any one or more of the followi…

31A-27a-208. Entry of order. (1) If the commissioner establishes any of the grounds provided in Section, the receivership court shall: 31A-27a-207 grant the petition; and issue the order of rehabilitation or liquidation requested in the petition. (2) Upon the issuance of the orde…

31A-27a-209. Effect of order of rehabilitation or liquidation. (1) The filing or recording of an order of receivership with the following imparts the same notice as a deed, bill of sale, or other evidence of title filed or recorded would have imparted: the court; the recorder of …

31A-27a-301. Rehabilitation orders. (1) An order to rehabilitate the business of an insurer shall: appoint the commissioner and the commissioner's successors in office as the rehabilitator; direct the rehabilitator to: take possession and title of the assets of the insurer; and a…

31A-27a-302. Powers and duties of the rehabilitator. (1) With court approval, the rehabilitator may take an action the rehabilitator considers necessary or appropriate to reform and revitalize the insurer, including: canceling: a policy; an insurance or reinsurance contract, othe…

31A-27a-303. Filing of rehabilitation plans. (1) The rehabilitator shall prepare and file a plan to effect rehabilitation with the receivership court within: one year after the day on which the rehabilitation order is entered; or such further time as the receivership court may al…

31A-27a-304. Termination of rehabilitation. (1) The rehabilitator may move for an order of liquidation whenever the rehabilitator believes further attempts to rehabilitate an insurer would: substantially increase the risk of loss to creditors, policyholders, or the public; or be …

31A-27a-305. Coordination with guaranty associations and orderly transition to liquidation. (1) No later than 30 days following the day on which an order of rehabilitation is entered the rehabilitator or the rehabilitator's designated representative shall: consult with any potent…

31A-27a-401. Liquidation orders. (1) An order to liquidate the business of an insurer shall: appoint the commissioner and any successor in office as the liquidator; and direct the liquidator to: take possession of the property of the insurer; and administer the property subject t…

31A-27a-402. Continuance of coverage. (1) Notwithstanding any policy or contract language or any other statute, and unless ordered otherwise by the receivership court upon application by the receiver, a reinsurance contract by which the insurer assumes the insurance obligations o…

31A-27a-403. Continuance of coverage -- Health maintenance organizations. (1) As used in this section: "Basic health care services" is as defined in Section. 31A-8-101 "Enrollee" is as defined in Section. 31A-8-101 "Health care" is as defined in Section. 31A-1-301 "Health mainten…

31A-27a-404. Sale or dissolution of the insurer's corporate entity. (1) Notwithstanding the entry of a liquidation order, the liquidator may apply for an order to sell or dissolve the corporate entity or charter of a domestic insurer, or the United States branch of an alien insur…

31A-27a-405. Powers of the liquidator. (1) The liquidator may: hold hearings, subpoena a witness to compel the witness' attendance, administer oaths, examine a person under oath, and compel a person to subscribe to that person's testimony after the testimony is correctly reduced …

31A-27a-406. Notice to creditors and others. (1) Unless the receivership court otherwise directs, the liquidator shall give or cause to be given notice of the liquidation order as soon as possible: by first-class mail or electronic communication as permitted by the receivership c…

31A-27a-407. Duties of agents. (1) At the request of the liquidator, an agent receiving notice of the entry of the liquidation order shall provide notice of that order: on a form prescribed by the liquidator; to: each policyholder of a policy issued through the agent; and other p…

31A-27a-501. Turnover of assets. (1) If the receiver determines that funds or property in the possession of another person are rightfully the property of the estate, the receiver shall deliver to the person a written demand for immediate delivery of the funds or property: referen…

31A-27a-502. Recovery from affiliates. (1) If a receivership order is entered under this chapter, the receiver appointed under the receivership order may recover on behalf of the insurer from an affiliate as defined in Subsectionthe value received by the affiliate at any time dur…

31A-27a-503. Unauthorized postpetition transfers. (1) Except as otherwise provided in this section, the receiver may avoid a transfer of an interest of the insurer in property, or an obligation incurred by the insurer, that is: made or incurred after the day on which a petition f…

31A-27a-504. Voidable preferences and liens. (1) A preference may be avoided by the rehabilitator or liquidator, if: the insurer is insolvent at the time of the transfer; the transfer is made within four months before the day on which the petition is filed; with reference to the …

31A-27a-505. Avoidance of property title transfers. (1) The rehabilitator or liquidator has the creditor's rights described in this Subsection, without regard to any knowledge of the rehabilitator or liquidator or any creditor. (1) The rehabilitator or liquidator is considered to…

31A-27a-506. Fraudulent transfers and obligations. (1) For purposes of this section: A "transfer": is made when the transfer is so perfected that a bona fide purchaser from the insurer against whom applicable law permits the transfer to be perfected cannot acquire an interest in …

31A-27a-507. Receiver as lien creditor. (1) The receiver may avoid a transfer of or lien on the property of, or obligation incurred by, an insurer that the insurer or a policyholder, creditor, member, or stockholder of the insurer: may have avoided without regard to any knowledge…

31A-27a-508. Liability of transferee. (1) Except as otherwise provided in this section, to the extent that the receiver obtains an order pursuant to Section, or avoids a transfer under Section,,,, or, the receiver may recover the property transferred, or the value of the property…