Download as PDF
304.33-200 Liquidation orders.
(1)
(2)
(3)
(4)
Order to liquidate. An order to liquidate the business of a domestic insurer shall
appoint the commissioner and his or her successors in office liquidator and
shall direct the liquidator forthwith to take possession of the assets of the
insurer and to administer them under the orders of the court. The liquidator
shall be vested by operation of law with the title to all of the property, contracts,
and rights of action and all of the books and records of the insurer ordered
liquidated, wherever located, as of the date of the filing of the petition for
liquidation. He or she may recover and reduce the same to possession except
that ancillary receivers in reciprocal states shall have, as to assets located in
their respective states, the rights and powers which are prescribed in
subsection (3) of KRS 304.33-540 for ancillary receivers appointed in this state
as to assets located in this state. The filing or recording of the order with any
county clerk in this state shall impart the same notice as a deed, bill of sale, or
other evidence of title duly filed or recorded with that county clerk.
Fixing of rights.
(a) Upon issuance of the order, the rights and liabilities of any such insurer
and of its creditors, policyholders, shareholders, members, and all other
persons interested in its estate are fixed as of the date of filing of the
petition for liquidation, except as provided in KRS 304.33-210 and
304.33-380.
(b) Entry of an order of liquidation shall not constitute an anticipatory breach
of any contracts of the insurer, and it shall not be grounds for rescission,
revocation, or cancellation of any contracts of the insurer in force as of the
date of liquidation, except as provided in KRS 304.33-210.
Alien insurer. 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 included under the
order.
Declaration of insolvency. At the time of petitioning for an order of liquidation,
or at any time thereafter, the commissioner may petition the court to declare
the insurer insolvent, and after such notice and hearing as it deems proper, the
court may make the declaration.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1443, effective July 15, 2010. -Amended 1990 Ky. Acts ch. 422, sec. 14, effective July 13, 1990. -- Amended
1978 Ky. Acts ch. 384 Ky. Acts ch. 470, effective June 17, 1978. -- Created
1970 Ky. Acts ch. 301, subtit. 33, sec. 20, effective June 18, 1970.
Disclaimer: These codes may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.