Sec. 38a-918. (Formerly Sec. 38-436). Order of liquidation. Termination of rehabilitation.
Sec. 38a-918. (Formerly Sec. 38-436). Order of liquidation. Termination of
rehabilitation. (a) Whenever the commissioner believes further attempts to rehabilitate
an insurer would substantially increase the risk of loss to creditors, policyholders or the
public, or would be futile, the commissioner may petition the Superior Court for an
order of liquidation. A petition under this subsection shall have the same effect as a
petition pursuant to section 38a-919. The Superior Court shall permit the directors of
the insurer to take such actions as are reasonably necessary to defend against the petition
and may order payment from the estate of the insurer of such costs and other expenses
of defense as justice may require.
(b) The rehabilitator may at any time petition the Superior Court for an order terminating rehabilitation of an insurer. The court shall also permit the directors of the insurer
to petition the court for an order terminating rehabilitation of the insurer and may order
payment from the estate of the insurer of such costs and other expenses of such petition
as justice may require. If the Superior Court finds that rehabilitation has been accomplished and that grounds for rehabilitation pursuant to section 38a-914 no longer exist,
it shall order that the insurer be restored to possession of its property and the control of
its business. The Superior Court may also make that finding and issue that order at any
time upon its own motion.
(P.A. 79-382, S. 16.)
History: Sec. 38-436 transferred to Sec. 38a-918 in 1991.