304.33-540 Ancillary formal proceedings.
(1)
(2)
(3)
(4)
Appointment of ancillary receiver in this state. If a domiciliary liquidator has been
appointed for an insurer not domiciled in this state, the commissioner shall file a
petition with the Franklin Circuit Court requesting appointment as ancillary receiver
in this state:
(a) If the commissioner finds that there are sufficient assets of the insurer located
in this state to justify the appointment of an ancillary receiver;
(b) If ten (10) or more persons resident in this state having claims against the
insurer file a petition with the commissioner requesting appointment of an
ancillary receiver; or
(c) If the protection of creditors or policyholders in this state so requires.
Terms of order. The court may issue an order appointing an ancillary receiver in
whatever terms it deems appropriate. The filing or recording of the order with any
county clerk in this state imparts the same notice as a deed, bill of sale or other
evidence of title duly filed or recorded with that county clerk.
Property rights and title: ancillary receivers in this state. When a domiciliary
liquidator has been appointed in a reciprocal state the ancillary receiver appointed in
this state under subsection (1) of this section shall have the sole right to recover all
the assets of the insurer in this state not already recovered by the domiciliary
liquidator, except that the domiciliary liquidator shall be entitled to and have the
sole right to recover balances due from agents and the books, accounts and other
records of the insurer. The ancillary receiver shall have the right to recover balances
due from agents and books, accounts and other records of the insurer, if such action
is necessary to protect the assets because of inaction by the domiciliary liquidator.
The ancillary receiver shall, as soon as practicable, liquidate from their respective
securities those special deposit claims and secured claims which are proved and
allowed in the ancillary proceedings in this state, and shall pay the necessary
expenses of the proceedings. The ancillary receiver shall promptly transfer all
remaining assets to the domiciliary liquidator. Subject to this section, the ancillary
receiver and his or her deputies shall have the same powers and be subject to the
same duties with respect to the administration of assets as a liquidator of an insurer
domiciled in this state.
Property rights and title: foreign ancillary receivers. When a domiciliary liquidator
has been appointed in this state, ancillary receivers appointed in reciprocal states
shall have, as to assets and books, accounts and other records located in their
respective states, corresponding rights and powers to those prescribed in subsection
(3) of this section for ancillary receivers appointed in this state.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1457, effective July 15, 2010. -Amended 1978 Ky. Acts ch. 384, sec. 475, effective June 17, 1978. -- Created 1970
Ky. Acts ch. 301, subtit. 33, sec. 54, effective June 18, 1970.
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