§ 7092. Liquidation of property of foreign or alien insurers found in this State
(a) If no domiciliary receiver has been appointed, the Commissioner may apply to the Superior
Court of Washington County by verified petition for an order directing the Commissioner
to liquidate the assets found in this State of a foreign insurer or an alien insurer
not domiciled in this State, on any of the following grounds:
(1) any of the grounds established in section 7051 or 7056 of this title; or
(2) any of the grounds established in subdivisions 7091(a)(2) through (4) of this title.
(b) When an order is sought under subsection (a) of this section, the court shall cause
the insurer to be given such notice and time to respond to the order as is reasonable
under the circumstances.
(c) If it shall appear to the court that the best interests of creditors, policyholders,
and the public require, the court may issue an order to liquidate in whatever terms
it shall deem appropriate. The filing or recording of the order with the Superior
Court of Washington County or the town clerk of the town in which the principal business
of the company is located or the town in which its principal office or place of business
is located shall impart the same notice as a deed, bill of sale, or other evidence
of title duly filed or recorded with that town clerk would have imparted.
(d) If a domiciliary liquidator is appointed in a reciprocal state while a liquidation
is proceeding under this section, the liquidator under this section shall thereafter
act as ancillary receiver under section 7094 of this title. If a domiciliary liquidator is appointed in a nonreciprocal state while a liquidation
is proceeding under this section, the liquidator under this section may petition the
court for permission to act as ancillary receiver under section 7094 of this title.
(e) On the same grounds as are established in subsection (a) of this section, the Commissioner
may petition any appropriate federal district court to be appointed receiver to liquidate
that portion of the insurer’s assets and business over which the court will exercise
jurisdiction, or any lesser part thereof that the Commissioner deems desirable for
the protection of the policyholders and creditors in this State.
(f) The court may order the Commissioner, when the Commissioner has liquidated the assets
of a foreign or alien insurer under this section, to pay claims of residents of this
State against the insurer under such rules as to the liquidation of insurers under
this chapter as are otherwise compatible with the provisions of this section. (Added 1991, No. 45, § 2, eff. May 29, 1991; amended 2021, No. 105 (Adj. Sess.), § 262, eff. July 1, 2022.)