Title 31A, Title 31A: Insurance Code

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…

31A-27a-509. Claims of holders of void or voidable rights. (1) The receiver may disallow a claim of a creditor who receives or acquires a preference, lien, conveyance, transfer, assignment, or encumbrance voidable under this chapter, unless the creditor surrenders the preference,…

31A-27a-510. Setoffs. (1) A mutual debt or mutual credit shall be set off and the balance only allowed or paid: whether arising out of one or more contracts between the insurer and another person in connection with an action or proceeding under this chapter; and except as provide…

31A-27a-511. Assessments. (1) As soon as practicable but not more than four years from the day on which an order of receivership of an insurer issuing assessable policies is entered, the receiver shall make a report to the receivership court setting forth: the reasonable value of…

31A-27a-512. Reinsurer's liability. (1) Except as otherwise provided in this chapter, the amount recoverable by the receiver from a reinsurer may not be reduced as a result of a delinquency proceeding with a finding of insolvency, regardless of any provision in the reinsurance co…

31A-27a-512.1. Indemnitor liability. (1) Except as otherwise provided in this chapter, the amount recoverable by the receiver from an indemnitor may not be reduced as a result of a delinquency proceeding with a finding of insolvency, regardless of any provision in the indemnity c…

31A-27a-513. Reinsurance continuation and termination. (1) For purposes of this section: "Coverage date" is the day on which an order of liquidation is entered. "Election date" is the day on which an affected guaranty association elects to assume under this section the rights and…

31A-27a-514. Recovery of premiums owed. (1) An insured shall pay any unpaid earned premium or retrospectively rated premium due the insurer: directly to the receiver; or to an agent that pays or is obligated to pay the receiver on behalf of the insured. Premium on surety business…

31A-27a-515. Commutation and release agreements. (1) For purposes of this section, "casualty claims" means the insurer's aggregate claims arising out of insurance contracts in the following lines: farm owner multiperil; homeowner multiperil; commercial multiperil; medical malprac…

31A-27a-516. Reinsurance recoverable trust provisions. (1) As used in this section: "Beneficiary" means the domiciliary insurance commissioner, as liquidator of the insurer for whose sole benefit a reinsurance recoverable trust is established. "Grantor" means the reinsurer who ha…

31A-27a-601. Filing of claims. (1) Subject to the other provisions of this Subsection, proof of a claim shall be filed with the liquidator in the form required by Sectionon or before the last day for filing specified in the notice required under Section. (1) 31A-27a-602 31A-27a-4…

31A-27a-602. Proof of claim. (1) Proof of claim shall consist of a statement signed by the claimant or on behalf of the claimant that includes all of the following that are applicable: the particulars of the claim including the consideration given for the claim; the identity and …

31A-27a-603. Allowance of claims. (1) Except as provided in Subsectionsand, the liquidator shall: (11) (12) review all claims filed in the liquidation proceeding in accordance with this chapter; and further investigate a claim, as the liquidator considers necessary. Consistent wi…

31A-27a-604. Claims under an occurrence policy, surety bond, surety undertaking. (1) Subject to Section, an insured may file a claim for the protection afforded under the insured's policy, irrespective of whether a claim is known at the time of filing, if the policy is an occurre…

31A-27a-605. Allowance of contingent and unliquidated claims. (1) As used in this section, "claim" means a demand for payment pursuant to Sectionunder the terms and conditions of a contract issued by the insurer as a result of a known accident, casualty, disaster, loss, event, or…

31A-27a-606. Special provisions for third party claims. (1) Whenever a 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 on or before the last day for filing claims. (2) Whether or not the t…

31A-27a-607. Disputed claims. (1) When a claim is disallowed in whole or in part by the liquidator, written notice of the determination and of the right to object shall be given promptly to the claimant or the claimant's attorney of record, if any, by first-class mail at the addr…

31A-27a-608. Liquidator's recommendations to the receivership court. (1) The liquidator shall, from time to time as determined by the liquidator, present to the receivership court for approval, reports of claims settled or determined by the liquidator under Section. 31A-27a-603 (…