§431:11-113  Recovery.  (a)  If an order
for liquidation or rehabilitation of a domestic insurer has been entered, the
receiver appointed under the order shall have a right to recover on behalf of
the insurer:



(1)  From any parent corporation or holding company or
person or affiliate who otherwise controlled the insurer, the amount of
distributions (other than distributions of shares of the same class of stock)
paid by the insurer on its capital stock, or



(2)  Any payment in the form of a bonus, termination
settlement, or extraordinary lump sum salary adjustment made by the insurer or
its subsidiary(ies) to a director, officer, or employee.



Where the distribution or payment pursuant to
items (1) or (2) is made at any time during the one year preceding the petition
for liquidation, conservation or rehabilitation, as the case may be, subject to
the limitations of subsections (b), (c), and (d).



(b)  No distribution shall be recoverable if
the parent or affiliate shows that when paid the distribution was lawful and
reasonable, and that the insurer did not know and could not reasonably have
known that the distribution might adversely affect the ability of the insurer
to fulfill its contractual obligations.



(c)  Any person who was a parent corporation or
holding company or a person who otherwise controlled the insurer or affiliate
at the time the distributions were paid shall be liable up to the amount of
distributions or payments under subsection (a) the person received.  Any person
who otherwise controlled the insurer at the time the distributions were
declared shall be liable up to the amount of distributions the person would
have received if they had been paid immediately.  If two or more persons are
liable with respect to the same distributions, they shall be jointly and
severally liable.



(d)  The maximum amount recoverable under this
section shall be the amount needed in excess of all other available assets of
the impaired or insolvent insurer to pay the contractual obligations of the
impaired or insolvent insurer and to reimburse any guaranty funds.



(e)  To the extent that any person liable under
subsection (c) is insolvent or otherwise fails to pay claims due from it
pursuant to subsection (c), its parent corporation or holding company or person
who otherwise controlled it at the time the distribution was paid, shall be
jointly and severally liable for any resulting deficiency in the amount
recovered from the parent corporation or holding company or person who
otherwise controlled it. [L 1987, c 349, pt of §8]