Sec. 38a-912. (Formerly Sec. 38-430). Seizure order by court.
Sec. 38a-912. (Formerly Sec. 38-430). Seizure order by court. (a) The commissioner may file in the Superior Court of this state a petition alleging, with respect to a
domestic insurer: (1) That there exist any grounds that would justify a court order for
a formal delinquency proceeding against an insurer under sections 38a-903 to 38a-961, inclusive; (2) that the interests of policyholders, creditors or the public will be
endangered by delay; and (3) the contents of an order deemed necessary by the commissioner.
(b) Upon a filing under subsection (a) of this section, the court may issue forthwith,
ex parte and without a hearing, the requested order which shall 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 until further order of the court enjoin the insurer and its officers,
managers, agents and employees from disposition of its property and from the transaction of its business except with the written consent of the commissioner.
(c) The court shall specify in the order what its duration shall be, which shall be
such time as the court deems necessary for the commissioner to ascertain the condition
of the insurer. On motion of either party or on its own motion, the court may from time
to time hold such hearings as it deems desirable after such notice as it deems 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
sections 38a-903 to 38a-961, inclusive, after having had a reasonable opportunity to do
so. An order of the court pursuant to a formal proceeding under said sections shall vacate
the seizure order.
(d) Entry of a seizure order under this section shall not constitute an anticipatory
breach of any contract of the insurer.
(e) An insurer subject to an ex parte order under this section may petition the court
at any time after the issuance of such order for a hearing and review of the order. The
court shall hold such a hearing and review not more than fifteen days after the request.
A hearing under this subsection may be held privately in chambers and it shall be so
held if the insurer proceeded against so requests.
(f) If, at any time after the issuance of such an order, it appears to the court that any
person whose interest is or will be substantially affected by the order did not appear at
the hearing and has not been served, the court may order that notice be given. An order
that notice be given shall not stay the effect of any order previously issued by the court.
(P.A. 79-382, S. 10; P.A. 92-93, S. 8.)
History: Sec. 38-430 transferred to Sec. 38a-912 in 1991; P.A. 92-93 made technical corrections for statutory consistency.