Utah Code 31A-27a-304. Termination of rehabilitation
Current as of: 2024 | Check for updates
|
Other versions
(1)
Terms Used In Utah Code 31A-27a-304
- Affected guaranty association: means a guaranty association that is or may become liable for payment of a covered claim. See Utah Code 31A-27a-102
- Application: means a document:(10)(a)(10)(a)(i) completed by an applicant to provide information about the risk to be insured; and(10)(a)(ii) that contains information that is used by the insurer to evaluate risk and decide whether to:(10)(a)(ii)(A) insure the risk under:(10)(a)(ii)(A)(I) the coverage as originally offered; or(10)(a)(ii)(A)(II) a modification of the coverage as originally offered; or(10)(a)(ii)(B) decline to insure the risk; or(10)(b) used by the insurer to gather information from the applicant before issuance of an annuity contract. See Utah Code 31A-1-301
- Control: is a s defined in Section 31A-1-301. See Utah Code 31A-27a-102
- Filed: means that a filing is:
(69)(a)(i) submitted to the department as required by and in accordance with applicable statute, rule, or filing order;(69)(a)(ii) received by the department within the time period provided in applicable statute, rule, or filing order; and(69)(a)(iii) accompanied by the appropriate fee in accordance with:(69)(a)(iii)(A) Section31A-3-103 ; or(69)(a)(iii)(B) rule. See Utah Code 31A-1-301- 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- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Order: means an order of the commissioner. See Utah Code 31A-1-301
- Policy: includes all clauses, riders, endorsements, and papers that are a part of a policy. See Utah Code 31A-27a-102
- Property: includes both real and personal property. See Utah Code 68-3-12.5
- 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
(1)(a) The rehabilitator may move for an order of liquidation whenever the rehabilitator believes further attempts to rehabilitate an insurer would:(1)(a)(i) substantially increase the risk of loss to creditors, policyholders, or the public; or(1)(a)(ii) be futile.(1)(b) In accordance with Section 31A-27a-305, the rehabilitator or the rehabilitator’s designated representative shall coordinate with an affected guaranty association and any national association of guaranty associations to plan for transition to liquidation.(2) The rehabilitator shall petition the receivership court for an order of liquidation or seek an order, on good cause shown, for a longer suspension period if:(2)(a) the payment of a policy obligation is suspended in substantial part for a period of six months at any time after the appointment of the rehabilitator; and(2)(b) the rehabilitator has not filed an application for approval of a plan under Section 31A-27a-303.(3)(3)(a) The receivership court may enter an order terminating rehabilitation of an insurer:(3)(a)(i) on petition from the rehabilitator, which may be made at any time;(3)(a)(ii) on petition from the directors of the insurer, which may be made at any time; or(3)(a)(iii) on the receivership court’s own motion.(3)(b) Subject to Section 31A-27a-801, if the receivership court finds that rehabilitation is accomplished and that grounds for rehabilitation under Section 31A-27a-207 no longer exist, the receivership court shall order that the insurer be restored to:(3)(b)(i) title and possession of its property; and(3)(b)(ii) the control of the business.