Utah Code 31A-27a-201. Receivership court’s seizure order
Current as of: 2024 | Check for updates
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(1) The commissioner may petition a court with jurisdiction under Title 78A, Judiciary and Judicial Administration:
For details, see Utah Code § 76-3-204
Attorney's Note
Under the Utah Code, punishments for crimes depend on the classification. In the case of this section:| Class | Prison | Fine |
|---|---|---|
| class B misdemeanor | up to 6 months | up to $1,000 |
Terms Used In Utah Code 31A-27a-201
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Chambers: A judge's office.
- Commissioner: is a s defined in Section 31A-1-301. See Utah Code 31A-27a-102
- Contract: A legal written agreement that becomes binding when signed.
- Control: is a s defined in Section 31A-1-301. See Utah Code 31A-27a-102
- Department: is a s defined in Section 31A-1-301 unless the context requires otherwise. See Utah Code 31A-27a-102
- Filing: when used as a noun, means an item required to be filed with the department including:(70)(a) a policy;(70)(b) a rate;(70)(c) a form;(70)(d) a document;(70)(e) a plan;(70)(f) a manual;(70)(g) an application;(70)(h) a report;(70)(i) a certificate;(70)(j) an endorsement;(70)(k) an actuarial certification;(70)(l) a licensee annual statement;(70)(m) a licensee renewal application;(70)(n) an advertisement;(70)(o) a binder; or(70)(p) an outline of coverage. See Utah Code 31A-1-301
- foreign insurer: means an insurer domiciled in another state. See Utah Code 31A-27a-102
- insurer: means a person who:
(23)(a) is doing, has done, purports to do, or is licensed to do the business of insurance;(23)(b) is or has been subject to the authority of, or to rehabilitation, liquidation, reorganization, supervision, or conservation by an insurance commissioner; or(23)(c) is included under Section 31A-27a-104. See Utah Code 31A-27a-102- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Order: means an order of the commissioner. See Utah Code 31A-1-301
- Person: includes :
(146)(a) an individual;(146)(b) a partnership;(146)(c) a corporation;(146)(d) an incorporated or unincorporated association;(146)(e) a joint stock company;(146)(f) a trust;(146)(g) a limited liability company;(146)(h) a reciprocal;(146)(i) a syndicate; or(146)(j) another similar entity or combination of entities acting in concert. See Utah Code 31A-1-301- Proceeding: includes an action or special statutory proceeding. See Utah Code 31A-1-301
- Property: includes both real and personal property. See Utah Code 68-3-12.5
- receiver: means the commissioner or the commissioner's designee, including a rehabilitator, liquidator, or ancillary receiver. See Utah Code 31A-27a-102
- receivership: means a rehabilitation, liquidation, or ancillary receivership. See Utah Code 31A-27a-102
- receivership court: refers to the court in which a delinquency proceeding is pending. See Utah Code 31A-27a-102
- State: means a state, district, or territory of the United States. See Utah Code 31A-27a-102
- unauthorized insurer: means an insurer transacting the business of insurance in this state that has not received a certificate of authority from this state, or some other type of authority that allows for the transaction of the business of insurance in this state. See Utah Code 31A-27a-102
(1)(a) with respect to:(1)(a)(i) an insurer domiciled in this state;(1)(a)(ii) an unauthorized insurer; or(1)(a)(iii) pursuant to Section 31A-27a-901, a foreign insurer;(1)(b) alleging that:(1)(b)(i) there exists grounds that would justify a court order for a formal delinquency proceeding against the insurer under this chapter; and(1)(b)(ii) the interests of policyholders, creditors, or the public will be endangered by delay; and(1)(c) setting forth the contents of a seizure order considered necessary by the commissioner.(2)(2)(a) Upon a filing under Subsection (1), the receivership court may issue the requested seizure order:(2)(a)(i) immediately, ex parte, and without notice or hearing;(2)(a)(ii) that directs the commissioner to take possession and control of:(2)(a)(ii)(A) all or a part of the property, accounts, and records of an insurer; and(2)(a)(ii)(B) the premises occupied by the insurer for transaction of the insurer’s business; and(2)(a)(iii) that until further order of the receivership court, enjoins the insurer and its officers, managers, agents, and employees from disposition of its property and from the transaction of its business except with the written consent of the commissioner.(2)(b) A person having possession or control of and refusing to deliver any of the records or assets of a person against whom a seizure order is issued under this Subsection (2) is guilty of a class B misdemeanor.(3)(3)(a) A petition that requests injunctive relief:(3)(a)(i) shall be verified by the commissioner or the commissioner’s designee; and(3)(a)(ii) is not required to plead or prove irreparable harm or inadequate remedy at law.(3)(b) The commissioner shall provide only the notice that the receivership court may require.(4)(4)(a) The receivership court shall specify in the seizure order the duration of the seizure, which shall be the time the receivership court considers necessary for the commissioner to ascertain the condition of the insurer.(4)(b) The receivership court may from time to time:(4)(b)(i) hold a hearing that the receivership court considers desirable:(4)(b)(i)(A)(4)(b)(i)(A)(I) on motion of the commissioner;(4)(b)(i)(A)(II) on motion of the insurer; or(4)(b)(i)(A)(III) on its own motion; and(4)(b)(i)(B) after the notice the receivership court considers appropriate; and(4)(b)(ii) extend, shorten, or modify the terms of the seizure order.(4)(c) The receivership court shall vacate the seizure order if the commissioner fails to commence a formal proceeding under this chapter after having had a reasonable opportunity to commence a formal proceeding under this chapter.(4)(d) An order of the receivership court pursuant to a formal proceeding under this chapter vacates the seizure order.(5) Entry of a seizure order under this section does not constitute a breach or an anticipatory breach of a contract of the insurer.(6)(6)(a) An insurer subject to an ex parte seizure order under this section may petition the receivership court at any time after the issuance of a seizure order for a hearing and review of the basis for the seizure order.(6)(b) The receivership court shall hold the hearing and review requested under this Subsection (6) not more than 15 days after the day on which the request is received or as soon thereafter as the court may allow.(6)(c) A hearing under this Subsection (6):(6)(c)(i) may be held privately in chambers; and(6)(c)(ii) shall be held privately in chambers if the insurer proceeded against requests that the hearing be private.(7)(7)(a) If, at any time after the issuance of a seizure order, it appears to the receivership court that a person whose interest is or will be substantially affected by the seizure order did not appear at the hearing and has not been served, the receivership court may order that notice be given to the person.(7)(b) An order under this Subsection (7) that notice be given may not stay the effect of a seizure order previously issued by the receivership court.(8) Whenever the commissioner makes a seizure as provided in Subsection (2), on the demand of the commissioner, it shall be the duty of the sheriff of a county of this state, and of the police department of a municipality in the state to furnish the commissioner with necessary deputies or officers to assist the commissioner in making and enforcing the seizure order.(9) The commissioner may appoint a receiver under this section. The insurer shall pay the costs and expenses of the receiver appointed.