2006 Utah Code - 31A-27-404 — Ancillary formal proceedings.

     31A-27-404.   Ancillary formal proceedings.
     (1) If a domiciliary liquidator has been appointed for an insurer not domiciled in Utah, the commissioner may file a petition with the Third District Court for Salt Lake County requesting appointment as ancillary receiver in Utah:
     (a) if the commissioner finds that there are sufficient assets of the insurer located in Utah to justify the appointment of an ancillary receiver;
     (b) if ten or more persons resident in Utah having claims against the insurer file a petition with the commissioner requesting appointment of an ancillary receiver; or
     (c) if the protection of creditors or policyholders in Utah so requires.
     (2) The court may issue an order appointing an ancillary receiver on whatever terms it considers appropriate. The filing or recording of the order with any county recorder in Utah imparts the same notice as evidence of title properly filed or recorded with that county recorder.
     (3) When a domiciliary liquidator has been appointed in a reciprocal state, the ancillary receiver appointed in Utah under Subsection (1) has the sole right to recover all the assets of the insurer in Utah not already recovered by the domiciliary liquidator, except that the domiciliary liquidator is entitled to and has the primary right to recover balances due from agents and the books, accounts, and other records of the insurer. The ancillary receiver has the right to recover balances due from agents and the books, accounts and other records of the insurer, if that action is necessary to protect the assets because of inaction by the domiciliary liquidator. As soon as practicable, the ancillary receiver shall liquidate from their respective securities those special deposit claims and secured claims which are proved and allowed in the ancillary proceedings in Utah, and shall pay the necessary expenses of those proceedings. The ancillary receiver shall promptly transfer all remaining assets to the domiciliary liquidator. Subject to this section, the ancillary receiver and the ancillary receiver's deputies have the same powers and are subject to the same duties with respect to the administration of assets as a liquidator of an insurer domiciled in Utah.
     (4) When a domiciliary liquidator has been appointed in Utah, ancillary receivers appointed in reciprocal states have, as to assets and the books, accounts, and other records located in their respective states, corresponding rights and powers to those prescribed in Subsection (3) for ancillary receivers appointed in Utah.

Enacted by Chapter 242, 1985 General Session