The Commissioner may petitionthe Court for an order authorizing him to rehabilitate a domestic insurer or analien insurer domiciled in this State on any one or more of the followinggrounds:
(1) The insurer is in suchcondition that the further transaction of business would be hazardousfinancially to its policyholders, creditors, or the public.
(2) There is reasonablecause to believe that there has been embezzlement from the insurer, wrongfulsequestration or diversion of the insurer's assets, forgery or fraud affectingthe insurer, or other illegal conduct in, by, or with respect to the insurerthat if established would endanger assets in an amount threatening the solvencyof the insurer.
(3) The insurer has failedto remove any person who in fact has executive authority in the insurer,whether an officer, manager, general agent, employee, or other person; if theperson has been found after notice and hearing by the Commissioner to bedishonest or untrustworthy in a way affecting the insurer's business.
(4) Control of theinsurer, whether by stock ownership or otherwise, and whether direct orindirect, is in a person or persons found after notice and hearing to beuntrustworthy.
(5) Any person who infact has executive authority in the insurer, whether an officer, manager,general agent, director or trustee, employee, or other person, has refused tobe examined under oath by the Commissioner concerning its affairs, whether inthis State or elsewhere; and after reasonable notice of the fact, the insurerhas failed promptly and effectively to terminate the employment and status ofthe person and all his influence on management.
(6) After demand by theCommissioner the insurer has failed to promptly make available for examinationany of its own property, books, accounts, documents, or other records; those ofany subsidiary or related company within the control of the insurer; or thoseof any person having executive authority in the insurer insofar as they pertainto the insurer.
(7) Without firstobtaining the written consent of the Commissioner, the insurer has (i)transferred, or attempted to transfer, in a manner contrary to Article 19 ofthis Chapter, substantially its entire property or business, or (ii) hasentered into any transaction, the effect of which is to merge, consolidate, orreinsure substantially its entire property or business in or with the propertyor business of any other person.
(8) The insurer or itsproperty has been or is the subject of an application for the appointment of areceiver, trustee, custodian, conservator, or sequestrator or similar fiduciaryof the insurer or its property otherwise than as authorized under Articles 1through 64 of this Chapter, and such appointment has been made or is imminent,and such appointment might oust the courts of this State of jurisdiction ormight prejudice orderly delinquency proceedings under this Article.
(9) Within the previousfour years the insurer has willfully violated its charter or articles of incorporation,its bylaws, Articles 1 through 67 of this Chapter, or any valid order of theCommissioner under G.S. 58‑30‑60.
(10) The insurer hasfailed to pay within 60 days after due any obligation to any state or anysubdivision thereof or any judgment entered in any state, if the court in whichsuch judgment was entered has jurisdiction over such subject matter; exceptthat such nonpayment is not a ground until 60 days after any good faith effortby the insurer to contest the obligation has been terminated, whether it isbefore the Commissioner or in the courts, or the insurer has systematicallyattempted to compromise or renegotiate previously agreed settlements with itscreditors on the ground that it is financially unable to pay its obligations infull.
(11) The insurer hasfailed to file its annual report or any other financial report required bystatute within the time allowed by law and, after written demand by theCommissioner, has failed to immediately give an adequate explanation.
(12) The board of directorsor the holders of a majority of the shares entitled to vote, or a majority ofthose individuals entitled to the control of those persons specified in G.S. 58‑30‑5,request or consent to rehabilitation under this Article. (1989, c. 452, s. 1; c. 770,s. 72.1; 1995, c. 193, s. 31; 2001‑223, s. 19.)
The Commissioner may petitionthe Court for an order authorizing him to rehabilitate a domestic insurer or analien insurer domiciled in this State on any one or more of the followinggrounds:
(1) The insurer is in suchcondition that the further transaction of business would be hazardousfinancially to its policyholders, creditors, or the public.
(2) There is reasonablecause to believe that there has been embezzlement from the insurer, wrongfulsequestration or diversion of the insurer's assets, forgery or fraud affectingthe insurer, or other illegal conduct in, by, or with respect to the insurerthat if established would endanger assets in an amount threatening the solvencyof the insurer.
(3) The insurer has failedto remove any person who in fact has executive authority in the insurer,whether an officer, manager, general agent, employee, or other person; if theperson has been found after notice and hearing by the Commissioner to bedishonest or untrustworthy in a way affecting the insurer's business.
(4) Control of theinsurer, whether by stock ownership or otherwise, and whether direct orindirect, is in a person or persons found after notice and hearing to beuntrustworthy.
(5) Any person who infact has executive authority in the insurer, whether an officer, manager,general agent, director or trustee, employee, or other person, has refused tobe examined under oath by the Commissioner concerning its affairs, whether inthis State or elsewhere; and after reasonable notice of the fact, the insurerhas failed promptly and effectively to terminate the employment and status ofthe person and all his influence on management.
(6) After demand by theCommissioner the insurer has failed to promptly make available for examinationany of its own property, books, accounts, documents, or other records; those ofany subsidiary or related company within the control of the insurer; or thoseof any person having executive authority in the insurer insofar as they pertainto the insurer.
(7) Without firstobtaining the written consent of the Commissioner, the insurer has (i)transferred, or attempted to transfer, in a manner contrary to Article 19 ofthis Chapter, substantially its entire property or business, or (ii) hasentered into any transaction, the effect of which is to merge, consolidate, orreinsure substantially its entire property or business in or with the propertyor business of any other person.
(8) The insurer or itsproperty has been or is the subject of an application for the appointment of areceiver, trustee, custodian, conservator, or sequestrator or similar fiduciaryof the insurer or its property otherwise than as authorized under Articles 1through 64 of this Chapter, and such appointment has been made or is imminent,and such appointment might oust the courts of this State of jurisdiction ormight prejudice orderly delinquency proceedings under this Article.
(9) Within the previousfour years the insurer has willfully violated its charter or articles of incorporation,its bylaws, Articles 1 through 67 of this Chapter, or any valid order of theCommissioner under G.S. 58‑30‑60.
(10) The insurer hasfailed to pay within 60 days after due any obligation to any state or anysubdivision thereof or any judgment entered in any state, if the court in whichsuch judgment was entered has jurisdiction over such subject matter; exceptthat such nonpayment is not a ground until 60 days after any good faith effortby the insurer to contest the obligation has been terminated, whether it isbefore the Commissioner or in the courts, or the insurer has systematicallyattempted to compromise or renegotiate previously agreed settlements with itscreditors on the ground that it is financially unable to pay its obligations infull.
(11) The insurer hasfailed to file its annual report or any other financial report required bystatute within the time allowed by law and, after written demand by theCommissioner, has failed to immediately give an adequate explanation.
(12) The board of directorsor the holders of a majority of the shares entitled to vote, or a majority ofthose individuals entitled to the control of those persons specified in G.S. 58‑30‑5,request or consent to rehabilitation under this Article. (1989, c. 452, s. 1; c. 770,s. 72.1; 1995, c. 193, s. 31; 2001‑223, s. 19.)
The Commissioner may petitionthe Court for an order authorizing him to rehabilitate a domestic insurer or analien insurer domiciled in this State on any one or more of the followinggrounds:
(1) The insurer is in suchcondition that the further transaction of business would be hazardousfinancially to its policyholders, creditors, or the public.
(2) There is reasonablecause to believe that there has been embezzlement from the insurer, wrongfulsequestration or diversion of the insurer's assets, forgery or fraud affectingthe insurer, or other illegal conduct in, by, or with respect to the insurerthat if established would endanger assets in an amount threatening the solvencyof the insurer.
(3) The insurer has failedto remove any person who in fact has executive authority in the insurer,whether an officer, manager, general agent, employee, or other person; if theperson has been found after notice and hearing by the Commissioner to bedishonest or untrustworthy in a way affecting the insurer's business.
(4) Control of theinsurer, whether by stock ownership or otherwise, and whether direct orindirect, is in a person or persons found after notice and hearing to beuntrustworthy.
(5) Any person who infact has executive authority in the insurer, whether an officer, manager,general agent, director or trustee, employee, or other person, has refused tobe examined under oath by the Commissioner concerning its affairs, whether inthis State or elsewhere; and after reasonable notice of the fact, the insurerhas failed promptly and effectively to terminate the employment and status ofthe person and all his influence on management.
(6) After demand by theCommissioner the insurer has failed to promptly make available for examinationany of its own property, books, accounts, documents, or other records; those ofany subsidiary or related company within the control of the insurer; or thoseof any person having executive authority in the insurer insofar as they pertainto the insurer.
(7) Without firstobtaining the written consent of the Commissioner, the insurer has (i)transferred, or attempted to transfer, in a manner contrary to Article 19 ofthis Chapter, substantially its entire property or business, or (ii) hasentered into any transaction, the effect of which is to merge, consolidate, orreinsure substantially its entire property or business in or with the propertyor business of any other person.
(8) The insurer or itsproperty has been or is the subject of an application for the appointment of areceiver, trustee, custodian, conservator, or sequestrator or similar fiduciaryof the insurer or its property otherwise than as authorized under Articles 1through 64 of this Chapter, and such appointment has been made or is imminent,and such appointment might oust the courts of this State of jurisdiction ormight prejudice orderly delinquency proceedings under this Article.
(9) Within the previousfour years the insurer has willfully violated its charter or articles of incorporation,its bylaws, Articles 1 through 67 of this Chapter, or any valid order of theCommissioner under G.S. 58‑30‑60.
(10) The insurer hasfailed to pay within 60 days after due any obligation to any state or anysubdivision thereof or any judgment entered in any state, if the court in whichsuch judgment was entered has jurisdiction over such subject matter; exceptthat such nonpayment is not a ground until 60 days after any good faith effortby the insurer to contest the obligation has been terminated, whether it isbefore the Commissioner or in the courts, or the insurer has systematicallyattempted to compromise or renegotiate previously agreed settlements with itscreditors on the ground that it is financially unable to pay its obligations infull.
(11) The insurer hasfailed to file its annual report or any other financial report required bystatute within the time allowed by law and, after written demand by theCommissioner, has failed to immediately give an adequate explanation.
(12) The board of directorsor the holders of a majority of the shares entitled to vote, or a majority ofthose individuals entitled to the control of those persons specified in G.S. 58‑30‑5,request or consent to rehabilitation under this Article. (1989, c. 452, s. 1; c. 770,s. 72.1; 1995, c. 193, s. 31; 2001‑223, s. 19.)
