2006 Louisiana Laws - RS 22:570 — Injunction; liquidation; receivership of domestic society

§570.  Injunction; liquidation; receivership of domestic society

A.(1)  The commissioner of insurance shall notify a domestic society in writing of a deficiency and of the need to correct the deficiency when the society has done one of the following:

(a)  Exceeded its powers.  

(b)  Failed to comply with any provision of this Part.  

(c)  Failed to fulfill its contracts in good faith.  

(d)  Failed to maintain its membership of four hundred or more after an existence of one year or more.  

(e)  Conducted business fraudulently or in a manner hazardous to its members, creditors, the public, or the business.  

(2)  After such notice the society shall have a thirty day period in which to comply with the commissioner's request for correction.  If the society fails to comply, the commissioner shall notify the society of such findings of noncompliance and require the society to show cause why it should not be enjoined from carrying on any business until the violation complained of has been corrected, or why an action should not be commenced against the society under Part XVI of this Chapter.  

B.  If on such date the society does not present good and sufficient reasons why it should not be so enjoined or why such action should not be commenced, the commissioner of insurance may proceed in accordance with Part XVI of this Chapter for the rehabilitation or liquidation of such society.

C.  No action under this Section shall be recognized in any court of this state unless brought upon request of the commissioner of insurance.  Whenever a receiver is to be appointed for a domestic society, the court shall appoint the commissioner of insurance as the receiver.  

D.  The provisions of this Section relating to hearing by the commissioner of insurance and any action by the commissioner of insurance under Part XVI of this Chapter shall be applicable to a society which shall voluntarily determine to discontinue business.  

Acts 1958, No. 125.  Acts 1987, No. 470, §1, eff. Jan. 1, 1988.