Section 375.1192

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS

Chapter 375

Effective - 28 Aug 1991   

  375.1192.  Fraudulent and voidable transfers — requirements — effects. — 1.  Every transfer made or suffered and every obligation incurred by an insurer within one year prior to the filing of a successful petition for rehabilitation or liquidation under sections 375.1150 to 375.1246 is fraudulent as to then existing and future creditors if made or incurred without fair consideration, or with actual intent to hinder, delay or defraud either existing or future creditors.  A transfer made or an obligation incurred by an insurer ordered to be rehabilitated or liquidated under this act^*, which is fraudulent under this section, may be avoided by the receiver, except as to a person who in good faith is a purchaser, lienor, or obligee for a present fair market value.  The court may, on due notice, order any such transfer or obligation to be preserved for the benefit of the estate, and in that event, the receiver shall succeed to and may enforce the rights of the purchaser, lienor, or obligee.

  2.  (1)  A transfer of property other than real property shall be deemed to be made or suffered when it becomes perfected to the extent that no subsequent lien obtainable by legal or equitable proceedings on a simple contract could become superior to the rights of the transferee under subsection 3 of section 375.1195;

  (2)  A transfer of real property shall be deemed to be made or suffered when it becomes perfected to the extent that no subsequent bona fide purchaser from the insurer could obtain rights superior to the rights of the transferee;

  (3)  A transfer which creates an equitable lien shall not be deemed to be perfected if there are available means by which a legal lien could be created;

  (4)  The provisions of this subsection apply whether or not there are or were creditors who might have obtained any liens or persons who might have become bona fide purchasers.

  3.  Any transaction of the insurer with a reinsurer shall be deemed fraudulent and may be avoided by the receiver under subsection 1 of this section if:

  (1)  The transaction consists of the termination, adjustment or settlement of a reinsurance contract in which the reinsurer is released from any part of its duty to pay the originally specified share of losses that had occurred prior to the time of the transactions, unless the reinsurer gives a present fair equivalent value for the release; or

  (2)  Any part of the transaction took place within one year prior to the date of filing of the petition through which the receivership was commenced.

  4.  Every person receiving any property from the insurer or any benefit thereof which is a fraudulent transfer under subsection 1 of this section shall be personally liable therefore and shall be bound to account to the liquidator.

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(L. 1991 H.B. 385, et al. § 75)

*"This act" (H.B. 385, et al., 1991) contaied numerous sections. Consult Disposition of Sections table for a definitive listing.