2006 Utah Code - 31A-27-307 — Grounds for liquidation.

     31A-27-307.   Grounds for liquidation.
     The commissioner may apply by verified petition to the Third District Court for Salt Lake County or to the district court of the county in which the principal office of the insurer is located, for an order directing the commissioner to liquidate a domestic insurer or an alien insurer domiciled in this state on any of the following grounds:
     (1) any ground on which the commissioner may apply for an order of rehabilitation under Section 31A-27-301, whenever the commissioner believes that attempts to rehabilitate the insurer would:
     (a) substantially increase the risk of loss to:
     (i) its creditors;
     (ii) its policyholders; or
     (iii) the public; or
     (b) be futile, or that rehabilitation would serve no useful purpose;
     (2) that the insurer is insolvent or is about to become insolvent as defined in Section 31A-1-301;
     (3) that the insurer is in the condition that the further transaction of business would be hazardous, financially or otherwise, to its policyholders, its creditors, or the public, including the occurrence of an authorized control level event as defined in Section 31A-17-605;
     (4) that the insurer:
     (a) during the previous 12 months:
     (i) has not transacted the business of insurance;
     (ii) has transacted only a token insurance business although authorized to do so throughout that period; or
     (b) more than 12 months after incorporation, has failed to become authorized to do an insurance business;
     (5) that during the previous 12 months, the insurer has systematically attempted to compromise with its creditors or renegotiate previously agreed settlements on the ground that it is financially unable to pay its claims in full;
     (6) that the insurer has commenced, or within the previous year has attempted to commence, voluntary liquidation otherwise than under this title;
     (7) that the insurer has concealed records or assets from the commissioner or improperly removed them from the jurisdiction;
     (8) that the insurer does not satisfy the requirements that would be applicable if it were seeking initial authorization to do an insurance business in this state, except for:
     (a) requirements that are intended to apply only at the time the initial authorization to do business is obtained and not after that time; and
     (b) requirements that are expressly made inapplicable by the laws establishing the requirements;
     (9) that the holders of 2/3 of the shares entitled to vote, or 2/3 of the members or policyholders entitled to vote in an insurer controlled by its members or policyholders, have consented to the petition; or
     (10) the conditions of Subsection 31A-1-106(7) are present.

Amended by Chapter 131, 1999 General Session