Director may appoint special deputies, powers--rehabilitationprocedures--criminal conduct of party, power of director--advisorycommittee may be appointed, when.
375.1168. 1. The director as rehabilitator may appoint oneor more special deputies, who shall have all the powers andresponsibilities of the rehabilitator granted under this section,and the director may employ such counsel, clerks and assistantsas deemed necessary. The compensation of the special deputy,counsel, clerks and assistants and all expenses of takingpossession of the insurer and of conducting the proceedings shallbe fixed by the director with the approval of the court and shallbe paid out of the funds or assets of the insurer. The personsappointed under this section shall serve at the pleasure of thedirector. In the event that the property of the insurer does notcontain sufficient cash or liquid assets to defray the costsincurred, the director may advance the costs so incurred out ofany appropriation to the department for such purpose. Anyamounts so advanced for expenses or administration shall berepaid to the director out of the first available money of theinsurer, and shall be paid by the director to the state treasurerfor deposit to the general revenue fund.
2. The rehabilitator may take such action as he deemsnecessary or appropriate to reform and revitalize the insurer.He shall have all the powers of the directors, officers, andmanagers, whose authority shall be suspended, except as they areredelegated by the rehabilitator. He shall have full power todirect and manage, to hire and discharge employees subject to anycontract rights they may have, and to deal with property andbusiness of the insurer.
3. If it appears to the rehabilitator that there has beencriminal or tortious conduct, or breach of any contractual orfiduciary obligation detrimental to the insurer by any officer,manager, agency, employee or other person, the rehabilitator maypursue all appropriate legal remedies on behalf of the insurer.
4. If the rehabilitator determines that reorganization,consolidation, conversion, reinsurance, merger or othertransformation of the insurer is appropriate, he shall prepare aplan to effect such changes. Upon application of therehabilitator for approval of the plan, and after such notice andhearings as the court may prescribe, the court may either approveor disapprove the plan proposed, or may modify it and approve itas modified. Any plan approved under this section shall be, inthe judgment of the court, fair and equitable to all partiesconcerned. If the plan is approved, the rehabilitator shallcarry out the plan. In the case of a life insurer, the planproposed may include the imposition of liens upon the policies ofthe company, if all rights of shareholders are firstrelinquished. A plan for a life insurer may also proposeimposition of a moratorium upon loan and cash surrender rightsunder policies, for such period and to such an extent as may benecessary.
5. The rehabilitator shall have all powers provided by lawto avoid fraudulent transfers.
6. The rehabilitator, with the approval of the court, mayappoint an advisory committee of policyholders, claimants, orother creditors should such a committee be deemed necessary.Such committee shall serve at the pleasure of the rehabilitatorand shall serve without compensation other than reimbursement forreasonable travel and other expenses. No other committee of anynature shall be appointed by the rehabilitator or the court inrehabilitation proceedings conducted under this section.
Director may appoint special deputies, powers--rehabilitationprocedures--criminal conduct of party, power of director--advisorycommittee may be appointed, when.
375.1168. 1. The director as rehabilitator may appoint oneor more special deputies, who shall have all the powers andresponsibilities of the rehabilitator granted under this section,and the director may employ such counsel, clerks and assistantsas deemed necessary. The compensation of the special deputy,counsel, clerks and assistants and all expenses of takingpossession of the insurer and of conducting the proceedings shallbe fixed by the director with the approval of the court and shallbe paid out of the funds or assets of the insurer. The personsappointed under this section shall serve at the pleasure of thedirector. In the event that the property of the insurer does notcontain sufficient cash or liquid assets to defray the costsincurred, the director may advance the costs so incurred out ofany appropriation to the department for such purpose. Anyamounts so advanced for expenses or administration shall berepaid to the director out of the first available money of theinsurer, and shall be paid by the director to the state treasurerfor deposit to the general revenue fund.
2. The rehabilitator may take such action as he deemsnecessary or appropriate to reform and revitalize the insurer.He shall have all the powers of the directors, officers, andmanagers, whose authority shall be suspended, except as they areredelegated by the rehabilitator. He shall have full power todirect and manage, to hire and discharge employees subject to anycontract rights they may have, and to deal with property andbusiness of the insurer.
3. If it appears to the rehabilitator that there has beencriminal or tortious conduct, or breach of any contractual orfiduciary obligation detrimental to the insurer by any officer,manager, agency, employee or other person, the rehabilitator maypursue all appropriate legal remedies on behalf of the insurer.
4. If the rehabilitator determines that reorganization,consolidation, conversion, reinsurance, merger or othertransformation of the insurer is appropriate, he shall prepare aplan to effect such changes. Upon application of therehabilitator for approval of the plan, and after such notice andhearings as the court may prescribe, the court may either approveor disapprove the plan proposed, or may modify it and approve itas modified. Any plan approved under this section shall be, inthe judgment of the court, fair and equitable to all partiesconcerned. If the plan is approved, the rehabilitator shallcarry out the plan. In the case of a life insurer, the planproposed may include the imposition of liens upon the policies ofthe company, if all rights of shareholders are firstrelinquished. A plan for a life insurer may also proposeimposition of a moratorium upon loan and cash surrender rightsunder policies, for such period and to such an extent as may benecessary.
5. The rehabilitator shall have all powers provided by lawto avoid fraudulent transfers.
6. The rehabilitator, with the approval of the court, mayappoint an advisory committee of policyholders, claimants, orother creditors should such a committee be deemed necessary.Such committee shall serve at the pleasure of the rehabilitatorand shall serve without compensation other than reimbursement forreasonable travel and other expenses. No other committee of anynature shall be appointed by the rehabilitator or the court inrehabilitation proceedings conducted under this section.
Director may appoint special deputies, powers--rehabilitationprocedures--criminal conduct of party, power of director--advisorycommittee may be appointed, when.
375.1168. 1. The director as rehabilitator may appoint oneor more special deputies, who shall have all the powers andresponsibilities of the rehabilitator granted under this section,and the director may employ such counsel, clerks and assistantsas deemed necessary. The compensation of the special deputy,counsel, clerks and assistants and all expenses of takingpossession of the insurer and of conducting the proceedings shallbe fixed by the director with the approval of the court and shallbe paid out of the funds or assets of the insurer. The personsappointed under this section shall serve at the pleasure of thedirector. In the event that the property of the insurer does notcontain sufficient cash or liquid assets to defray the costsincurred, the director may advance the costs so incurred out ofany appropriation to the department for such purpose. Anyamounts so advanced for expenses or administration shall berepaid to the director out of the first available money of theinsurer, and shall be paid by the director to the state treasurerfor deposit to the general revenue fund.
2. The rehabilitator may take such action as he deemsnecessary or appropriate to reform and revitalize the insurer.He shall have all the powers of the directors, officers, andmanagers, whose authority shall be suspended, except as they areredelegated by the rehabilitator. He shall have full power todirect and manage, to hire and discharge employees subject to anycontract rights they may have, and to deal with property andbusiness of the insurer.
3. If it appears to the rehabilitator that there has beencriminal or tortious conduct, or breach of any contractual orfiduciary obligation detrimental to the insurer by any officer,manager, agency, employee or other person, the rehabilitator maypursue all appropriate legal remedies on behalf of the insurer.
4. If the rehabilitator determines that reorganization,consolidation, conversion, reinsurance, merger or othertransformation of the insurer is appropriate, he shall prepare aplan to effect such changes. Upon application of therehabilitator for approval of the plan, and after such notice andhearings as the court may prescribe, the court may either approveor disapprove the plan proposed, or may modify it and approve itas modified. Any plan approved under this section shall be, inthe judgment of the court, fair and equitable to all partiesconcerned. If the plan is approved, the rehabilitator shallcarry out the plan. In the case of a life insurer, the planproposed may include the imposition of liens upon the policies ofthe company, if all rights of shareholders are firstrelinquished. A plan for a life insurer may also proposeimposition of a moratorium upon loan and cash surrender rightsunder policies, for such period and to such an extent as may benecessary.
5. The rehabilitator shall have all powers provided by lawto avoid fraudulent transfers.
6. The rehabilitator, with the approval of the court, mayappoint an advisory committee of policyholders, claimants, orother creditors should such a committee be deemed necessary.Such committee shall serve at the pleasure of the rehabilitatorand shall serve without compensation other than reimbursement forreasonable travel and other expenses. No other committee of anynature shall be appointed by the rehabilitator or the court inrehabilitation proceedings conducted under this section.
