Section 375.1236

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS

Chapter 375

Effective - 28 Aug 1992   

  375.1236.  Ancillary receiver, director may be appointed as — powers and duties. — 1.  If a domiciliary liquidator has been appointed for an insurer not domiciled in this state, the director may file a petition with the circuit court of Cole County requesting appointment as ancillary receiver in this state:

  (1)  If he finds that there are sufficient assets of the insurer located in this state to justify the appointment of an ancillary receiver;

  (2)  If the protection of creditors or policyholders in this state so requires.

  2.  The court may issue an order appointing an ancillary receiver in whatever terms it shall deem appropriate.  The filing or recording of the order with the recorder of deeds in this state imparts the same notice as a deed, bill of sale or other evidence of title duly filed or recorded with that recorder of deeds.

  3.  When a domiciliary liquidator has been appointed in a reciprocal state, then the ancillary receiver appointed in this state may, whenever necessary, aid and assist the domiciliary liquidator in recovering assets of the insurer located in this state.  The ancillary receiver shall, as soon as practicable, liquidate from their respective securities those special deposit claims and secured claims which are proved and allowed in the ancillary proceedings in this state, and shall pay the necessary expenses of the proceedings.  He shall promptly transfer all remaining assets, books, accounts and records to the domiciliary liquidator.  Subject to this section, the ancillary receiver and his deputies shall have the same powers and be subject to the same duties with respect to the administration of assets as a liquidator of an insurer domiciled in this state.

  4.  When a domiciliary liquidator has been appointed in this state, ancillary receivers appointed in reciprocal states shall have, as to assets and books, accounts, and other records in their respective states, corresponding rights, duties and powers to those provided in subsection 3 of this section for ancillary receivers appointed in this state.

  5.  Any ancillary receivership either in this state or another state may not recover its administrative costs from the domiciliary liquidator unless the domiciliary liquidator has requested in writing to the commissioner or other appropriate insurance official of the domiciliary state of the insurer, that the ancillary receivership be opened, or such commissioner or official requests the opening of an ancillary receivership.  If an ancillary receivership is opened other than at the request of the domiciliary liquidator or domiciliary insurance official, then all assets recovered by the ancillary receiver shall be valued at their maximum potential value by the liquidator, rather than the value actually realized by the ancillary receiver.  Such assets shall be offset at full value against any claims of the ancillary state or the guaranty association or foreign guaranty association of the ancillary state.  This subsection shall not apply to proceedings described in subsection 2 of section 375.1235.

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(L. 1991 H.B. 385, et al. § 102, A.L. 1992 H.B. 1574)