2006 Utah Code - 31A-27-103 — Jurisdiction and venue.

     31A-27-103.   Jurisdiction and venue.
     (1) Except as provided in Subsection (2), a delinquency proceeding may not be commenced under this chapter by anyone other than the Utah commissioner.
     (2) (a) Three or more judgment creditors holding unrelated judgments against an insurer, which judgments aggregate more than $5,000 in excess of any security held by those creditors may commence proceedings against the insurer under the conditions and in the manner prescribed in this Subsection (2), by serving notice upon the commissioner and the insurer of intention to file a petition for liquidation under Section 31A-27-307 or 31A-27-402.
     (b) Each of the judgments described in Subsection (2)(a):
     (i) shall have been rendered against the insurer by a Utah court having jurisdiction over the subject matter and the insurer;
     (ii) shall have been entered more than 60 days before the service of notice under Subsection (2)(a);
     (iii) may not have been satisfied in full;
     (iv) may not be the subject of a valid contract between the insurer and any judgment creditor for payment of the judgment, unless that contract has been breached by the insurer;
     (v) may not be a judgment assigned in order to institute proceedings under this Subsection (2); and
     (vi) may not be a judgment on which an appeal or review is pending or may yet be brought.
     (c) If any one of the judgments in favor of a petitioning creditor remains unpaid for 30 days after service of the notice under Subsection (2)(a), and the commissioner has not then filed a petition for liquidation:
     (i) the creditor may file a verified petition for liquidation of the insurer:
     (A) in the manner prescribed by Section 31A-27-307 or 31A-27-402; and
     (B) alleging the conditions stated in this Subsection (2); and
     (ii) the commissioner shall be served and joined in the action.
     (3) Except in accordance with this chapter, a court of this state does not have jurisdiction to entertain, hear, or determine any complaint praying for:
     (a) the dissolution, liquidation, rehabilitation, sequestration, conservation, or receivership of any insurer; or
     (b) an injunction or restraining order or other relief preliminary to, incidental to, or relating to the type of proceedings described in Subsection (3)(a).
     (4) (a) Venue for proceedings arising under this chapter shall be laid initially as specified in the sections providing for those proceedings.
     (b) All other actions and proceedings initiated by the receiver may be commenced and tried where:
     (i) the delinquency proceedings are then pending; or
     (ii) venue would be laid by applicable Utah law.
     (c) All other actions and proceedings against the receiver shall be commenced and tried in the county where the delinquency proceedings are pending.
     (d) Upon motion of any party, venue may be changed by order of the court or the presiding judge of the court to any other district court in Utah, whenever the convenience of the parties and witnesses and the ends of justice require it.
     (e) This Subsection (4) relates only to venue and is not jurisdictional.

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     (5) In addition to other grounds for jurisdiction provided by the law of Utah, a Utah court having jurisdiction of the subject matter has jurisdiction over a person properly served in an action brought by the receiver of a domestic insurer or an alien insurer domiciled in Utah:
     (a) if the person served is obligated to the insurer in any way as an incident to any agency or brokerage arrangement that may exist or has existed between them, in any action on or incident to the obligation;
     (b) if the person served is a reinsurer who has at any time written a policy of reinsurance for an insurer against which a rehabilitation or liquidation order is in effect when the action is commenced;
     (c) if the person served is a producer for the reinsurer described in Subsection (5)(b), in any action on or incident to the reinsurance contract; or
     (d) if the person served is or has been an officer, manager, trustee, organizer, promoter, or person in a position of comparable authority or influence in an insurer against which a rehabilitation or liquidation order is in effect when the action is commenced, in any action resulting from the relationship with the insurer.
     (6) (a) Subject to Sections 31A-27-305 and 31A-27-317, the court in which a delinquency proceeding is pending has exclusive jurisdiction for:
     (i) all actions and proceedings brought against the receiver of a rehabilitation or liquidation estate of the insurer; or
     (ii) any action or proceeding in any way related to a rehabilitation or liquidation estate of an insurer.
     (b) An action described in Subsection (6)(a) shall be commenced and tried in the court having exclusive jurisdiction.
     (7) If the court on the motion of any party finds that any action commenced under Subsection (5) should, as a matter of substantial justice, be tried in a forum outside Utah, the court may enter an order to stay further proceedings on the action in Utah.

Amended by Chapter 298, 2003 General Session