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304.33-190 Grounds for liquidation.
(1)
(2)
The commissioner may apply by petition to the Circuit Court for Franklin County or
for the county in which the principal office of the insurer is located for an order
directing him or her to liquidate a domestic insurer or an alien insurer domiciled in
this state on any one (1) or more of the following grounds:
(a) Any ground on which the commissioner may apply for an order of
rehabilitation under KRS 304.33-140, whenever he or she believes that
attempts to rehabilitate the insurer would substantially increase the risk of loss
to its creditors, its policyholders or the public, or would be futile, or that
rehabilitators would serve no useful purpose;
(b) That the insurer has commenced, or within the previous year has attempted to
commence, voluntary liquidation otherwise than under the insurance laws of
this state;
(c) That the holders of two-thirds (2/3) of the shares entitled to vote, or two-thirds
(2/3) of the members or policyholders entitled to vote in an insurer controlled
by its members or policyholders, have consented to a petition.
Upon the issuance of an order directing the commissioner to liquidate a domestic
insurer, the court shall have exclusive jurisdiction over all matters relating to the
liquidation, including but not limited to, the proper scope and application of the
provisions of this subtitle to the liquidation as well as all interpretation and
enforceability of all contracts of insurance to which the insurer is a party.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1442, effective July 15, 2010. -Amended 1990 Ky. Acts ch. 422, sec. 13, effective July 13, 1990. -- Created 1970
Ky. Acts ch. 301, subtit. 33, sec. 19, effective June 18, 1970.
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