2006 Utah Code - 31A-27-310 — Liquidation orders.

     31A-27-310.   Liquidation orders.
     (1) (a) An order to liquidate the business of a domestic insurer shall:
     (i) appoint the commissioner and each of the commissioner's successors in office as liquidator; and
     (ii) direct the liquidator to immediately take possession of the assets of the insurer and to administer them under the orders of the court.
     (b) Except as qualified by Section 31A-27-309, the liquidator is vested by operation of law with the title to all of the property, contracts, and rights of action and all of the books and records of the insurer ordered liquidated, wherever located, as of the date of the filing of the petition for liquidation.
     (c) The liquidator may recover and reduce them to possession, except that ancillary receivers in reciprocal states have, as to assets located in their respective states, the rights and powers prescribed in Subsection 31A-27-404(3) for ancillary receivers appointed in Utah as to assets located in Utah.
     (d) The filing or recording of the order of liquidation with a county recorder in Utah or equivalent agency outside of Utah imparts the same notice as a deed, bill of sale, or other evidence of title properly filed or recorded with that county recorder in Utah or equivalent agency outside of Utah.
     (2) Upon issuance of the order of liquidation, the rights and liabilities of the named insurer and of its creditors, policyholders, shareholders, members, and all other persons interested in its estate are fixed as of the date of filing the petition for liquidation, except as provided in Sections 31A-27-311 and 31A-27-330.
     (3) An order to liquidate the business of an alien insurer domiciled in Utah shall be in the same terms and has the same legal effect as an order to liquidate a domestic insurer, except that the assets and the business in the United States shall be the only assets and business included under the order.
     (4) (a) At the time of petitioning for an order of liquidation, or at any time after the petition the commissioner may petition the court to declare the insurer insolvent.
     (b) After the notice and hearing on a petition under Subsection (4)(a) that the court considers proper, the court may make the declaration.

Amended by Chapter 131, 1999 General Session