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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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