Rehabilitation of insurer, director may petition, when--grounds.
375.1165. The director may apply by petition to the courtfor an order authorizing him to rehabilitate a domestic insureror an alien insurer domiciled in this state on any one or more ofthe following grounds:
(1) The insurer is in such condition that the furthertransaction of business would be hazardous financially to itspolicyholders, creditors or the public;
(2) There is reasonable cause to believe that there hasbeen embezzlement from the insurer, wrongful sequestration ordiversion of the insurer's assets, forgery or fraud affecting theinsurer, or other illegal conduct in, by, or with respect to theinsurer that if established would endanger assets in an amountthreatening the solvency of the insurer;
(3) The insurer has failed to remove any person who in facthas executive authority in the insurer, whether an officer,manager, general agent, employee, or other person, if the personhas been found after notice and hearing by the director to bedishonest or untrustworthy in a way affecting the insurer'sbusiness;
(4) Control of the insurer, whether by stock ownership orotherwise, and whether direct or indirect, is in a person orpersons found after notice and hearing to be untrustworthy;
(5) Any person who in fact has executive authority in theinsurer, whether an officer, manager, general agent, director ortrustee, employee, or other person, has refused to be examinedunder oath by the director concerning its affairs, whether inthis state or elsewhere; and after reasonable notice of the fact,the insurer has failed promptly and effectively to terminate theemployment and status of the person and all his influence onmanagement;
(6) After request by the director pursuant to section374.190, RSMo, or pursuant to the provisions of sections 375.1150to 375.1246, the insurer has failed to promptly make availablefor examination any of its own property, books, accounts,documents, or other records, or those of any subsidiary orrelated company within* the control of the insurer, or those ofany person having executive authority in the insurer so far asthey pertain to the insurer;
(7) Without first obtaining the written consent of thedirector, the insurer has transferred, or attempted to transferin a manner contrary to section 375.241 or sections 382.040 to382.060, RSMo, substantially its entire property or business, orhas entered into any transaction the effect of which is to merge,consolidate, or reinsure substantially its entire property orbusiness in or with the property or business of any other person;
(8) The insurer or its property has been or is the subjectof an application for the appointment or a receiver, trustee,custodian, conservator or sequestrator or similar fiduciary ofthe insurer or its property otherwise than as provided under theinsurance laws of this state, or such appointment has been madeor is imminent;
(9) Within the previous three years the insurer haswillfully violated its charter or articles of incorporation, itsbylaws, any insurance law of this state, or any valid order ofthe director under section 375.1160 or 375.1162;
(10) The insurer has failed to pay within sixty days afterdue date any obligation to any state or any subdivision thereofor any judgment entered in any state, if the court in which suchjudgment was entered had jurisdiction over such subject matterexcept that such nonpayment shall not be a ground until sixtydays after any good faith effort by the insurer to contest theobligation has been terminated, whether it is before the directoror in the courts, or the insurer has systematically attempted tocompromise or renegotiate previously agreed settlements with itscreditors on the ground that it is financially unable to pay itsobligations in full;
(11) The insurer has failed to file its annual report orother financial report required by law within the time allowed bylaw;
(12) The board of directors or the holders of a majority ofthe shares entitled to vote, or a majority of those individualsentitled to the control of the insurer request or consent torehabilitation under sections 375.1150 to 375.1246.
Rehabilitation of insurer, director may petition, when--grounds.
375.1165. The director may apply by petition to the courtfor an order authorizing him to rehabilitate a domestic insureror an alien insurer domiciled in this state on any one or more ofthe following grounds:
(1) The insurer is in such condition that the furthertransaction of business would be hazardous financially to itspolicyholders, creditors or the public;
(2) There is reasonable cause to believe that there hasbeen embezzlement from the insurer, wrongful sequestration ordiversion of the insurer's assets, forgery or fraud affecting theinsurer, or other illegal conduct in, by, or with respect to theinsurer that if established would endanger assets in an amountthreatening the solvency of the insurer;
(3) The insurer has failed to remove any person who in facthas executive authority in the insurer, whether an officer,manager, general agent, employee, or other person, if the personhas been found after notice and hearing by the director to bedishonest or untrustworthy in a way affecting the insurer'sbusiness;
(4) Control of the insurer, whether by stock ownership orotherwise, and whether direct or indirect, is in a person orpersons found after notice and hearing to be untrustworthy;
(5) Any person who in fact has executive authority in theinsurer, whether an officer, manager, general agent, director ortrustee, employee, or other person, has refused to be examinedunder oath by the director concerning its affairs, whether inthis state or elsewhere; and after reasonable notice of the fact,the insurer has failed promptly and effectively to terminate theemployment and status of the person and all his influence onmanagement;
(6) After request by the director pursuant to section374.190, RSMo, or pursuant to the provisions of sections 375.1150to 375.1246, the insurer has failed to promptly make availablefor examination any of its own property, books, accounts,documents, or other records, or those of any subsidiary orrelated company within* the control of the insurer, or those ofany person having executive authority in the insurer so far asthey pertain to the insurer;
(7) Without first obtaining the written consent of thedirector, the insurer has transferred, or attempted to transferin a manner contrary to section 375.241 or sections 382.040 to382.060, RSMo, substantially its entire property or business, orhas entered into any transaction the effect of which is to merge,consolidate, or reinsure substantially its entire property orbusiness in or with the property or business of any other person;
(8) The insurer or its property has been or is the subjectof an application for the appointment or a receiver, trustee,custodian, conservator or sequestrator or similar fiduciary ofthe insurer or its property otherwise than as provided under theinsurance laws of this state, or such appointment has been madeor is imminent;
(9) Within the previous three years the insurer haswillfully violated its charter or articles of incorporation, itsbylaws, any insurance law of this state, or any valid order ofthe director under section 375.1160 or 375.1162;
(10) The insurer has failed to pay within sixty days afterdue date any obligation to any state or any subdivision thereofor any judgment entered in any state, if the court in which suchjudgment was entered had jurisdiction over such subject matterexcept that such nonpayment shall not be a ground until sixtydays after any good faith effort by the insurer to contest theobligation has been terminated, whether it is before the directoror in the courts, or the insurer has systematically attempted tocompromise or renegotiate previously agreed settlements with itscreditors on the ground that it is financially unable to pay itsobligations in full;
(11) The insurer has failed to file its annual report orother financial report required by law within the time allowed bylaw;
(12) The board of directors or the holders of a majority ofthe shares entitled to vote, or a majority of those individualsentitled to the control of the insurer request or consent torehabilitation under sections 375.1150 to 375.1246.
Rehabilitation of insurer, director may petition, when--grounds.
375.1165. The director may apply by petition to the courtfor an order authorizing him to rehabilitate a domestic insureror an alien insurer domiciled in this state on any one or more ofthe following grounds:
(1) The insurer is in such condition that the furthertransaction of business would be hazardous financially to itspolicyholders, creditors or the public;
(2) There is reasonable cause to believe that there hasbeen embezzlement from the insurer, wrongful sequestration ordiversion of the insurer's assets, forgery or fraud affecting theinsurer, or other illegal conduct in, by, or with respect to theinsurer that if established would endanger assets in an amountthreatening the solvency of the insurer;
(3) The insurer has failed to remove any person who in facthas executive authority in the insurer, whether an officer,manager, general agent, employee, or other person, if the personhas been found after notice and hearing by the director to bedishonest or untrustworthy in a way affecting the insurer'sbusiness;
(4) Control of the insurer, whether by stock ownership orotherwise, and whether direct or indirect, is in a person orpersons found after notice and hearing to be untrustworthy;
(5) Any person who in fact has executive authority in theinsurer, whether an officer, manager, general agent, director ortrustee, employee, or other person, has refused to be examinedunder oath by the director concerning its affairs, whether inthis state or elsewhere; and after reasonable notice of the fact,the insurer has failed promptly and effectively to terminate theemployment and status of the person and all his influence onmanagement;
(6) After request by the director pursuant to section374.190, RSMo, or pursuant to the provisions of sections 375.1150to 375.1246, the insurer has failed to promptly make availablefor examination any of its own property, books, accounts,documents, or other records, or those of any subsidiary orrelated company within* the control of the insurer, or those ofany person having executive authority in the insurer so far asthey pertain to the insurer;
(7) Without first obtaining the written consent of thedirector, the insurer has transferred, or attempted to transferin a manner contrary to section 375.241 or sections 382.040 to382.060, RSMo, substantially its entire property or business, orhas entered into any transaction the effect of which is to merge,consolidate, or reinsure substantially its entire property orbusiness in or with the property or business of any other person;
(8) The insurer or its property has been or is the subjectof an application for the appointment or a receiver, trustee,custodian, conservator or sequestrator or similar fiduciary ofthe insurer or its property otherwise than as provided under theinsurance laws of this state, or such appointment has been madeor is imminent;
(9) Within the previous three years the insurer haswillfully violated its charter or articles of incorporation, itsbylaws, any insurance law of this state, or any valid order ofthe director under section 375.1160 or 375.1162;
(10) The insurer has failed to pay within sixty days afterdue date any obligation to any state or any subdivision thereofor any judgment entered in any state, if the court in which suchjudgment was entered had jurisdiction over such subject matterexcept that such nonpayment shall not be a ground until sixtydays after any good faith effort by the insurer to contest theobligation has been terminated, whether it is before the directoror in the courts, or the insurer has systematically attempted tocompromise or renegotiate previously agreed settlements with itscreditors on the ground that it is financially unable to pay itsobligations in full;
(11) The insurer has failed to file its annual report orother financial report required by law within the time allowed bylaw;
(12) The board of directors or the holders of a majority ofthe shares entitled to vote, or a majority of those individualsentitled to the control of the insurer request or consent torehabilitation under sections 375.1150 to 375.1246.
