40-3649. Same; liquidation of assets; order of court; grounds; notice; liquidator appointed in another state; petition to federal district court; payment of claims to residents.
40-3649
40-3649. Same; liquidation of assets; order of court; grounds; notice;liquidator appointed in another state; petition to federal district court;payment of claims to residents.(a) If no domiciliary receiver has been appointed, thecommissionermay apply to the district court of Shawnee county by verified petition for anorder directing such receiver to liquidate the assets found in this state of aforeign insurer or an alien insurer not domiciled in this state, on any of thefollowing grounds:
(1) Any of the grounds in K.S.A. 40-3616 or 40-3621; or
(2) any of the grounds specified in K.S.A. 40-3648(a)(2) through(4), inclusive.
(b) When an order is sought under subsection (a), the court shall cause theinsurer to be given such notice and time to respond thereto as is reasonableunder the circumstances.
(c) If it appears to the court that the best interests of creditors,policyholders and the public require, the court may issue an order to liquidatein whatever terms it shall deem appropriate. The filing or recording of theorder with the clerk of the court or the register of deeds of the county inwhich the principal business of the company is located or the county in whichits principal office or place of business is located, shall impart the samenotice as a deed, bill of sale or other evidence of title duly filed orrecorded with the register of deeds would have imparted.
(d) If a domiciliary liquidator is appointed in a reciprocal state while aliquidation is proceeding under this section, the liquidator under this sectionshall thereafter act as ancillary receiver under K.S.A. 40-3652. Ifa domiciliaryliquidator is appointed in a nonreciprocal state while a liquidation isproceeding under this section, the liquidator under this section may petitionthe court for permission to act as ancillary receiver under K.S.A.40-3651.
(e) On the same grounds as are specified in subsection (a), the commissionermay petition any appropriate federal district court to be appointed receiver toliquidate that portion of the insurer's assets and business over which thecourt will exercise jurisdiction, or any lesser part thereof thecommissioner deems desirable for the protection of the policyholders andcreditors in this state.
(f) The court may order the commissioner, when the assets of a foreign oralien insurer have been liquidated under this section, to pay claims ofresidents of this state against the insurer under such rules as to theliquidation of insurers under this act as are otherwise compatible with theprovisions of this section.
History: L. 1991, ch. 125, § 45; July 1.