40-3622.Same; contents of order; authority and responsibility ofliquidator; effect of filing or recording of order; rights and liabilities ofparties; insolvency of insurer, findings, petition and declaration by court;accounting by liquidator; appeal from order; appeal pendency plan; order setaside on appeal.(a) An order to liquidate the business of a domestic insurershall appoint the commissioner and successors as liquidator and shall directtheliquidator forthwith to take possession of the assets of the insurer and toadminister such assets under the general supervision of the court. Theliquidatorshall be vested by operation of law with the title to all of the property,contracts and rights of action, and all of the books and records of the insurerordered liquidated, wherever located, as of the entry of the final order ofliquidation. The filing or recording of the order with the clerk of thedistrict court of Shawnee county and the register of deeds of the county inwhich its principal office or place of business is located; or, in the case ofreal estate, with the register of deeds of the county where the property islocated, shall impart the same notice as a deed, bill of sale or other evidenceof title duly filed or recorded with that register of deeds would haveimparted.
(b) Upon issuance of the order, the rights and liabilities of any suchinsurer and of its creditors, policyholders, shareholders, members and allother persons interested in such insurer's estate shall become fixed as of thedate ofentry of the order of liquidation, except as provided in K.S.A.40-3623 and 40-3638.
(c) At the time of petitioning for an order of liquidation, or at any timethereafter, the commissioner, after making appropriate findings of an insurer'sinsolvency, may petition the court for a judicial declaration of suchinsolvency. After providing such notice and hearing as it deems proper, thecourt may make the declaration.
(d) Any order issued under this section shall require accounting to thecourt by the liquidator. Accounts shall be at such intervals as the courtspecifies in its order.
(e) (1) If an order of liquidation is appealed, the commissioner mayrequest the court to approve an appeal pendency plan for the continuedperformance of the defendant company's policy claims obligations including,but not limited to, the duty to defend insured's under liability policies,during the pendency of an appeal. No action shall be against the commissioneror any of the commissioner's deputies, agents, clerks, assistants or attorneysby any party based on preference in an appeal pendency plan approved by thecourt.
(2) The appeal pendency plan shall not supersede nor affect the obligationsof any insurance guaranty decision.
(3) Any such plans shall provide for equitable adjustments to be made by theliquidator to any distributions of assets to guaranty associations, in theevent that the liquidator pays claims from assets of the estate, which wouldotherwise be the obligations of any particular guaranty association but for theappeal of the order of liquidation, such that all guaranty associations equallybenefit on a pro rata basis from the assets of the estate. Further, in theevent an order of liquidation is set aside upon any appeal, the company shallnot be released from delinquency proceedings unless and until all fundsadvanced by any guaranty association, including reasonable administrativeexpenses in connection therewith relating to obligations of the company, shallbe repaid in full, together with interest at the judgment rate of interest orunless an arrangement for repayment thereof has been made with the consent ofall applicable guaranty associations.
40-3622.Same; contents of order; authority and responsibility ofliquidator; effect of filing or recording of order; rights and liabilities ofparties; insolvency of insurer, findings, petition and declaration by court;accounting by liquidator; appeal from order; appeal pendency plan; order setaside on appeal.(a) An order to liquidate the business of a domestic insurershall appoint the commissioner and successors as liquidator and shall directtheliquidator forthwith to take possession of the assets of the insurer and toadminister such assets under the general supervision of the court. Theliquidatorshall be vested by operation of law with the title to all of the property,contracts and rights of action, and all of the books and records of the insurerordered liquidated, wherever located, as of the entry of the final order ofliquidation. The filing or recording of the order with the clerk of thedistrict court of Shawnee county and the register of deeds of the county inwhich its principal office or place of business is located; or, in the case ofreal estate, with the register of deeds of the county where the property islocated, shall impart the same notice as a deed, bill of sale or other evidenceof title duly filed or recorded with that register of deeds would haveimparted.
(b) Upon issuance of the order, the rights and liabilities of any suchinsurer and of its creditors, policyholders, shareholders, members and allother persons interested in such insurer's estate shall become fixed as of thedate ofentry of the order of liquidation, except as provided in K.S.A.40-3623 and 40-3638.
(c) At the time of petitioning for an order of liquidation, or at any timethereafter, the commissioner, after making appropriate findings of an insurer'sinsolvency, may petition the court for a judicial declaration of suchinsolvency. After providing such notice and hearing as it deems proper, thecourt may make the declaration.
(d) Any order issued under this section shall require accounting to thecourt by the liquidator. Accounts shall be at such intervals as the courtspecifies in its order.
(e) (1) If an order of liquidation is appealed, the commissioner mayrequest the court to approve an appeal pendency plan for the continuedperformance of the defendant company's policy claims obligations including,but not limited to, the duty to defend insured's under liability policies,during the pendency of an appeal. No action shall be against the commissioneror any of the commissioner's deputies, agents, clerks, assistants or attorneysby any party based on preference in an appeal pendency plan approved by thecourt.
(2) The appeal pendency plan shall not supersede nor affect the obligationsof any insurance guaranty decision.
(3) Any such plans shall provide for equitable adjustments to be made by theliquidator to any distributions of assets to guaranty associations, in theevent that the liquidator pays claims from assets of the estate, which wouldotherwise be the obligations of any particular guaranty association but for theappeal of the order of liquidation, such that all guaranty associations equallybenefit on a pro rata basis from the assets of the estate. Further, in theevent an order of liquidation is set aside upon any appeal, the company shallnot be released from delinquency proceedings unless and until all fundsadvanced by any guaranty association, including reasonable administrativeexpenses in connection therewith relating to obligations of the company, shallbe repaid in full, together with interest at the judgment rate of interest orunless an arrangement for repayment thereof has been made with the consent ofall applicable guaranty associations.
40-3622.Same; contents of order; authority and responsibility ofliquidator; effect of filing or recording of order; rights and liabilities ofparties; insolvency of insurer, findings, petition and declaration by court;accounting by liquidator; appeal from order; appeal pendency plan; order setaside on appeal.(a) An order to liquidate the business of a domestic insurershall appoint the commissioner and successors as liquidator and shall directtheliquidator forthwith to take possession of the assets of the insurer and toadminister such assets under the general supervision of the court. Theliquidatorshall be vested by operation of law with the title to all of the property,contracts and rights of action, and all of the books and records of the insurerordered liquidated, wherever located, as of the entry of the final order ofliquidation. The filing or recording of the order with the clerk of thedistrict court of Shawnee county and the register of deeds of the county inwhich its principal office or place of business is located; or, in the case ofreal estate, with the register of deeds of the county where the property islocated, shall impart the same notice as a deed, bill of sale or other evidenceof title duly filed or recorded with that register of deeds would haveimparted.
(b) Upon issuance of the order, the rights and liabilities of any suchinsurer and of its creditors, policyholders, shareholders, members and allother persons interested in such insurer's estate shall become fixed as of thedate ofentry of the order of liquidation, except as provided in K.S.A.40-3623 and 40-3638.
(c) At the time of petitioning for an order of liquidation, or at any timethereafter, the commissioner, after making appropriate findings of an insurer'sinsolvency, may petition the court for a judicial declaration of suchinsolvency. After providing such notice and hearing as it deems proper, thecourt may make the declaration.
(d) Any order issued under this section shall require accounting to thecourt by the liquidator. Accounts shall be at such intervals as the courtspecifies in its order.
(e) (1) If an order of liquidation is appealed, the commissioner mayrequest the court to approve an appeal pendency plan for the continuedperformance of the defendant company's policy claims obligations including,but not limited to, the duty to defend insured's under liability policies,during the pendency of an appeal. No action shall be against the commissioneror any of the commissioner's deputies, agents, clerks, assistants or attorneysby any party based on preference in an appeal pendency plan approved by thecourt.
(2) The appeal pendency plan shall not supersede nor affect the obligationsof any insurance guaranty decision.
(3) Any such plans shall provide for equitable adjustments to be made by theliquidator to any distributions of assets to guaranty associations, in theevent that the liquidator pays claims from assets of the estate, which wouldotherwise be the obligations of any particular guaranty association but for theappeal of the order of liquidation, such that all guaranty associations equallybenefit on a pro rata basis from the assets of the estate. Further, in theevent an order of liquidation is set aside upon any appeal, the company shallnot be released from delinquency proceedings unless and until all fundsadvanced by any guaranty association, including reasonable administrativeexpenses in connection therewith relating to obligations of the company, shallbe repaid in full, together with interest at the judgment rate of interest orunless an arrangement for repayment thereof has been made with the consent ofall applicable guaranty associations.
