2006 Utah Code - 31A-27-202 — Court\'s seizure order.

     31A-27-202.   Court's seizure order.
     (1) Upon the commissioner's filing a verified petition in any district court in this state, alleging any ground that would justify a court order for a formal delinquency proceeding against an insurer under this chapter, stating that the interests of policyholders, creditors, or the public will be endangered by delay, setting out the circumstances that make delay dangerous, and explaining why a seizure order is considered necessary by the commissioner, the court shall immediately issue, ex parte and without a hearing, the requested seizure order. This order shall be framed as narrowly as the need permits and may:
     (a) direct the commissioner to take possession and control of all or a part of the property, books, accounts, documents, and other records of an insurer and of the premises occupied by it for the transaction of its business; and
     (b) until further order of the court, enjoin the insurer and its officers, managers, agents, and employees from disposition of its property and from transaction of its business, except with the written consent of the commissioner.
     (2) The court shall specify in the order the duration of the order, which shall be for as long as the court considers it necessary for the commissioner to ascertain the condition of the insurer. On the motion of either party or on its own motion, the court may hold any hearings it considers desirable, after any notice it considers appropriate, and may extend, shorten, or modify the terms of the seizure order. The court shall vacate the seizure order if the commissioner fails to commence a formal proceeding under this chapter after having had a reasonable opportunity to do so. The issuance of an order of the court in a formal proceeding under this chapter vacates the seizure order.
     (3) Entry of a seizure order under this section is not an anticipatory breach of any contract of the insurer.

Amended by Chapter 204, 1986 General Session