2019 US Virgin Islands Code
Title 22 - Insurance
Chapter 51 - Mergers, Rehabilitation, Liquidation
§ 1253. Grounds for rehabilitation
- The Commissioner may apply to the District Court for an order directing him to rehabilitate a domestic insurer upon one or more of the following grounds: That the insurer—
(1) is insolvent;
(2) has refused to submit its books, records, accounts or affairs to the reasonable examination of the Commissioner;
(3) has failed to comply with the Commissioner's order, made pursuant to law, to make good an impairment of capital (if a stock insurer) or an impairment of assets (if a mutual insurer) within the time prescribed by law;
(4) has transferred or attempted to transfer substantially its entire property or business, or has entered into any transaction the effect of which is to merge substantially its entire property or business in that of any other insurer without first having obtained the written approval of the Commissioner;
(5) if found, after examination, to be in such condition that its further transaction of business will be hazardous to its policyholders, or to its creditors, or to its members, subscribers, or stockholders, or to the public;
(6) has wilfully violated its charter or any law of this territory;
(7) has an officer, director, or manager who has refused to be examined under oath, concerning its affairs, for which purpose the Commissioner is authorized to conduct and to enforce by all appropriate and available means any such examination under oath in any other territory or state of the United States, in which any such officer, director or manager may then presently be, to the full extent permitted by the laws of any such other state or territory, this special authorization considered;
(8) has been the subject of an application for the appointment of a receiver, trustee, custodian or sequestrator of the insurer or of its property, or if a receiver, trustee, custodian, or sequestrator is appointed by a federal court or if such appointment is imminent;
(9) has consented to such an order through a majority of its directors, stockholders, members, or subscribers; or
(10) has failed to pay a final judgment rendered against it in any jurisdiction upon any insurance contract issued or assumed by it, within 30 days after the judgment became final or within 30 days after time for taking an appeal has expired, or within 30 days after dismissal of an appeal before final determination, whichever date is the later.
